Sparks City Council Meeting 7/13/2015 2:00:00 PM

    Monday, July 13, 2015 2:00 PM
    City Council Chambers, Legislative Bldg, 745 Fourth St., Sparks

General Business: 9.6

Title: Consideration and possible approval of an agreement to cooperate to sale Washoe County Assessor’s Parcel Number 514-081-01, an approximately 1.2 acre parcel of city owned property, in conjunction with Washoe County Assessor’s Parcel Number 516-281-03, an approximately 3 acre parcel owned by David L. Hurt.
Petitioner/Presenter: Community Services Department/Ian Crittenden, Senior Planner
Recommendation: Staff recommends that the City Council enter into the agreement to cooperate in the sale of City owned property with David L. Hurt.
Financial Impact: $2-3,000 for summary and review appraisals. Sale of the City’s property would produce sales proceeds for the City.
Total Costs: $3,000.00
Fund: General Fund    Account: 603242
Program: Project Planning - Sustainability Coordination (130120)
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 agenda item asks the City Council to enter in to an agreement with David L. Hurt to cooperate in the sale of his property (APN 516-281-03) and an adjacent parcel owned by the city (514-081-01).  The 1.2 acres city-owned parcel is directly west of Sparks Fire Station #4 on Disc Drive. The 3 acre Hurt parcel is directly north of the city parcel.

This agreement would allow a prospective buyer that is currently in negotiations with Hurt to perform their due diligence, pursue land use entitlements, and enter into a Purchase and Sale agreement with the city during the term of this agreement.  Hurt and the city agree to only sale their respective properties jointly or not at all during the term of this agreement.

The joint sale of these properties is in the best interest of the city because of the size, layout and location of the properties, primarily because access to the Hurt property is across the city property. Selling the properties jointly to a common buyer will permit greater utilization of both properties and maximize the site’s development potential.


David L. Hurt owns a parcel approximately 3 acres in size (APN 516-281-03) identified in Exhibit A; it is currently zoned A-5.  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 allows for only a common buyer for both properties during the term of the agreement.  The combined properties are anticipated to be a site for multifamily residential development.  The city entered into similar agreements with Mr. Hurt in the past but both of the previous agreements lapsed without any interested buyers.  Mr. Hurt has now entered into negotiations with a potential buyer and would like to re-establish an agreement to give the potential buyer an opportunity to apply for and potentially receive any and all land use entitlements necessary to develop the combined property.


The city and Hurt properties will be sold together or not at all during the term of this agreement.  Combining the two properties and pursuing any needed entitlements will be the responsibility of the buyer and is to be accomplished during the term of the agreement.  The city and the buyer will negotiate a Purchase and Sale Agreement during the term of this agreement.  The Purchase and Sale Agreement will be brought to City Council for consideration and possible approval after this agreement is in place.

The city and Hurt will enter into separate but concurrent closings with the buyer. The price for the city property will be determined by the city receiving summary and review appraisal on the city 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. The city would not pay any portion of the real estate broker commissions associated with the sale of these properties. The term for this agreement is 250 days unless extended by mutual agreement of both parties.


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:
     Hurt Cooperative Sale Agreement 6-26-2015.pdf
     Exhibit A.pdf
     Exhibit B.pdf
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