2013 2:00:00 PM

Monday, October 28, 2013 2:00 PM
City Council Chambers, Legislative Building, 745 4th Street, Sparks, Nevada

General Business: 6.3

Title: Consideration and possible approval of an agreement to cooperate to sell Parcel “A” of Parcel Map 2773, approximately 1.2 acres in size located on Disc Drive, in conjunction with an adjacent 3 acre parcel owned by David L. Hurt

Petitioner/Presenter: Community Services Department/Armando Ornelas

Recommendation: Staff recommends that the City Council approve the Agreement to Cooperate in the Sale of City Owned Property.

Financial Impact: $2-3,000 for summary and review appraisals, if an offer is received. Sale of the City’s property would produce sales proceeds for the City.

Total Costs: $3,000.00

Fund: General Fund Account: 603242
Program: Admin Planning - Dept Mgmt B&S (130105)
Amount: $3,000.00 Budget Status: Budget Exists

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: This agreement provides for a City owned parcel 1.2 acres in size directly west of Sparks Fire Station #4 to be offered for sale in conjunction with an adjacent parcel approximately 3 acres in size owned by David L. Hurt. The agreement specifies that if an offer for purchase of the combined properties is received by the City and Mr. Hurt, the City shall obtain summary and review appraisals for the City property. If Mr. Hurt agrees to a price, after taking into account the appraised value of the City’s property, the City would receive from the sale proceeds an amount equivalent to the appraised value of the City property minus the City’s share of closing costs and escrow fees. Mr. Hurt would receive the difference between the amount of the sales proceeds for the two properties and the amount paid to the City, minus his share of closing costs and escrow fees. Mr. Hurt is solely responsible for the payment of any real estate broker commissions for this transaction. The term of the agreement is 180 days unless extended by mutual agreement of the parties.

Background: David L. Hurt owns a parcel approximately 3 acres in size (APN 516-281-03) identified in Exhibit A currently zoned A-40. The City owns the adjacent parcel to the south (APN 514-081-01, approximately 1.2 acres in size) identified in Exhibit B and currently zoned PF (Public Facility). The City’s property has direct access to Disc Drive while the Hurt property has access only via an easement across the City’s property. The proposed agreement calls for the two parcels to be jointly offered for sale – referred to as the “Combined Property” in the agreement – as a site for commercial development. The City entered into a similar agreement with Mr. Hurt in 2010. However, no offers were received and the agreement lapsed.

Analysis: The Combined Property will be marketed for joint sale by a realtor or broker retained by David Hurt. Combining the two parcels would be the responsibility of the buyer, if they are so inclined, as would any effort to rezone one or both of the properties. The agreement specifies that if an offer for purchase of the Combined Property is received by the City and Mr. Hurt, the City shall obtain summary and review appraisals for the City property. If Mr. Hurt agrees to the price offered, after taking into account the appraised value of the City’s property, the City would receive from the sale proceeds an amount equivalent to the appraised value of the City property minus the City’s share of closing costs and escrow fees. Mr. Hurt would receive the difference between the amount of the sales proceeds for the Combined Property and the amount paid to the City, minus his share of closing costs and escrow fees. Mr. Hurt is also solely responsible for the payment of any real estate broker commissions for this transaction. The term of the agreement is 180 days unless extended by mutual agreement of the parties.

Alternatives: The City Council’s alternatives include: (a) rejecting the agreement; (b) requesting changes to the proposed terms of the agreement; (c) providing alternative direction to staff.

Recommended Motion: I move to approve the Agreement to Cooperate in the Sale of City Owned Property with David Hurt.

Attached Files:

Exhibits A & B.pdf

Modified Hurt Agreement to Sell City Property clean 10-11-13.pdf

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