City Council
MEETING DATE: 11/9/2016
TITLE:
Title
Disposition of Fire Station 411
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize the sale of Fire Station 411 APN 687-202-015 to the City Urban Revitalization Corporation ("CURC") at the appraised value of $576,561 for subsequent demolition.
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BACKGROUND:
This is a .79 acre single purpose site located directly to the south of 2nd Street Park at 36913 Date Palm Drive. The purpose of the acquisition is to assist the City in the future development of this site into a larger development opportunity with adjacent vacant parcels consistent with the obligation of the existing Disposition and Development Agreement between CURC and the City as the Successor Agency to the former Redevelopment Agency of Cathedral City. In addition, the proceeds of future development of the vacant parcels will be earmarked for the City to develop a future new fire station. The appraisal was completed for insurance purposes in 2013 by Alliant Insurance Services. There has been no increased value during this time. As the Fire Station will eventually be demolished and vacant land, CURC buying the building and land now will provide a higher purchase price and return to the City.
DISCUSSION:
The City Urban Revitalization Corporation is a 501(c)(3) non-profit public benefit corporation to assist in relieving the burdens of local government. CURC's mission is to assist in the acquisition and development of land in the downtown corridor subsequently benefiting the City of Cathedral City through new sales tax, property tax, development fees and hotel tax. This transaction will help accomplish this mission and assist in building a new fire station to service the future growth of the city.
Staff is recommending Council consideration to move forward selling the building to the City Urban Revitalization Corporation ("CURC") as CURC would like to exercise its right under an existing development agreement with the former Redevelopment Agency, at fair market value. CURC would then manage the future disposition and development of the site. Until such time as a new fire station is completed, CURC will provide the land and the existing fire station will remain and CURC would lease the fire station site back to the City for $1 and the City would continue to provide fire services to the community as it does today and until the new fire station is built. The existing insurance policies will remain in place to cover liability and property coverage. This will provide a much needed economic development opportunity for Council to consider in our downtown core as it will be a much larger development site, providing a broader interest from the development community. The referenced property is not property previously dedicated for public purpose by map or deed; it is not surplus property and it is not required to be disposed via a Department of Finance approved Long Range Property Management plan.
FISCAL IMPACT:
Fair Market Appraised Value of the site $576,561
ATTACHMENTS:
None