Memorandum 15-134 Purchase of Waddell Property and Waddell Way Road Improvements

Memorandum ID: 
15-134
Memorandum Status: 
Backup

Details

Memorandum 15-134

 

TO:                       Mary K. Koester, City Manager

FROM:                 Carey Meyer, Public Works Director

DATE:                  August 4, 2015

SUBJECT:         Purchase of Waddell Property –  Appropriating 25% Grant Match

                              Waddell Way Road Improvements

 

 

The City Council accepted and appropriated a Legislative Grant (Ordinance 14-42(S)) in the amount of $1,430,000 for the Waddell Road Improvements. The grant covers design, utilities, property acquisition, and construction costs. The City indicated in the grant application that a 25%  match (from the HART Fund) would be provided in support of the project.

 

The Council, at the July 27 meeting, approved the alignment of this project  per the  recommendations of the Planning Commission (connect Waddell Way to Heath Street at the Grubstake Avenue intersection).

 

The Waddell property (see attached map) will need to be purchased to construct the project. An appraisal of the property established the fair market value of $855,000 ($418,000 land; 437,000 buildings). A purchase agreement was signed with the property owner on July 29 agreeing to a purchase price equal to the appraised value. The agreement is conditioned upon the approval of the City Council. Closing is scheduled for September 8.

 

The cost of purchasing the property is proposed to be split between the grant and the HART Fund with the grant covering 75% of the  initial cost ($641, 250) and the HART Fund covering 25% of the initial cost ($213,750) of the property purchase.

 

The Waddell Road Improvement project will only require a portion of the land being acquired. The remainder will be sold. The cabins that exist on the property will also be sold. The funds generated from the sale of the remaining parcel and the cabins will be distributed back into the grant project account and the HART Fund in generally the same proportions.

 

Recommendation: The City Council pass an ordinance amending the FY 2015 operating budget by appropriating $357,500 from the Homer Accelerated Road and Trail (HART) Fund as a 25% match to the Waddell Way Road Improvement grant, approving the purchase of the Waddell property with 75%/25% split between the grant and the HART fund, and authorizing the City Manager to execute the appropriate documents.