HomeMy WebLinkAboutA001 - Council Action Form dated January 25, 2011 ITEM # 15 a&b
DATE: 01-25-11
COUNCIL ACTION FORM
SUBJECT: SUMNER AVENUE RIGHT-OF-WAY AND ALLEY IN KINGSBURY'S
ADDITION
BACKGROUND:
A representative from BMB Land Company LC (Doug Pyle) has requested that the alley
south of SE 2nd Street between Sumner Avenue and High Avenue be vacated, and a
representative of BBNC LLC (Bart Clark) has requested that the right-of-way of Sumner
Avenue south of SE 2nd Street be vacated. (See attached map.) Sumner Avenue
pavement in that location was removed long ago, and the right-of-way does not connect
with SE 3rd Street.
Staff has determined that neither of these rights of way are needed for public ingress or
egress. According to City policy for disposing of excess right-of-way, the adjacent
property owners were approached to determine their interest in purchasing the
respective adjoining halves of the right-of-ways. Exhibits 1 and 2 are attached to
demonstrate each section of right-of-way. The total value of the Sumner Avenue right-
of-way is estimated at $123,460.79, and the alley right-of-way value is estimated at
$12,091.85. In accordance with City policy, these values were determined by taking the
average value of the adjacent properties, deducting 10 percent for a quit claim deed,
and deducting 15 percent for maintaining easements on the property for access to
existing utilities. Utility right-of-way permits and easements need to be retained in order
to maintain access to the existing utilities.
BMB Land Company LC, JMH Corporation, and BBNC LLC have expressed interest in
purchasing the segments of these rights-of-way adjacent to their properties. Boyd Antill
has told staff that he would forego purchasing piece A of Sumner Avenue, if BMB Land
Company LC can purchase it directly from the City. BMB Land Company LC has stated
that they are interested in purchasing piece A. BBNC LLC has also expressed an
interest in purchasing the entire right-of-way of Sumner Avenue, including piece A.
It should be noted that piece E has a long-term lease from the City to BBNC for parking
purposes. After conferring with the Legal Department, the right-of-way with the lease
(piece E) could be sold conditional upon the new owner honoring the exact lease terms
that exist. Since BBNC is both the lessee and the proposed owner, this becomes a
moot issue.
1
ALTERNATIVES:
1 a. Approve starting the process of vacating the Sumner Avenue right-of-way and
alley right-of-way in Kingsbury's Addition by setting the date of public hearing as
February 8, 2011, and directing the City Clerk to publish notice.
b. Approve starting the process of disposing of the right-of-way once it is vacated by
proposing the sale and conveyance, setting February 8, 2011 , as the date of
public hearing, and directing the City Clerk to publish notice as follows:
■ pieces F and J on Exhibits 1 and 2 to JMH Corporation in the amount
of $17,260.85;
■ pieces A, B, D, G, H, and I on Exhibits 1 and 2 to BMB Land Company
LC in the amount of$90,390.01 ;
■ pieces C and E on Exhibits 1 and 2 to BBNC LLC in the amount of
$27,901.78.
2a. Approve starting the process of vacating the Sumner Avenue right-of-way and
alley right-of-way in Kingsbury's Addition by setting the date of public hearing as
February 8, 2011, and directing the City Clerk to publish notice.
b. Approve starting the process of disposing of the right-of-way once it is vacated by
proposing the sale and conveyance, setting February 8, 2011, as the date of
public hearing, and directing the City Clerk to publish notice as follows:
■ pieces F and J on Exhibits 1 and 2 to JMH Corporation in the amount
of $17,260.85;
■ pieces B, D, G, H, and I on Exhibits 1 and 2 to BMB Land Company LC
in the amount of $55,890.05;
■ pieces A, C, and E on Exhibits 1 and 2 to BBNC LLC in the amount of
$62,401.74.
3. Retain the land and deny the requests to vacate the right-of-way of Sumner
Avenue and the alley located in Kingsbury's Addition.
MANAGER'S RECOMMENDED ACTION:
The difference between Alternatives #1 and #2 are that, under #1, piece A goes to
BMB, while under#2, piece A would go to BBNC. It has been long-standing City policy,
as well as past practice, to offer the adjoining half of vacated right-of-way to the property
owner that is immediately adjacent to that land. In the case of piece A, the immediately
adjacent owner, Boyd Antill, has told staff he would forego purchasing this property.
2
This leaves the only other adjacent property owner as BMB. BMB has expressed their
desire to purchase piece A, in addition to the other adjacent pieces noted on the
attached exhibits.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby vacating and selling the right-of-way of Sumner Avenue and
the alley located in Kingsbury's Addition.
3
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