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File #: RES 2019-117    Version: 1 Name:
Type: Resolution Status: Passed
File created: 10/31/2019 In control: Town Council
On agenda: 11/5/2019 Final action: 11/5/2019
Title: Resolution Approving a Real Estate Purchase Agreement for the Acquisition of Certain Property within the Plum Creek Planned Unit Development
Attachments: 1. Attachment A - Resolution, 2. Exhibit 1 - Real Estate Purhcase Agreement, 3. Exhibit A - Property Description, 4. Exhibit B - Permitted Exceptions, 5. Attachment B - Kilty and Company Appraisal Reports, 6. Attachment C - THK Associates, Inc. Appraisal Report, 7. Presentation

To:                     Honorable Mayor and Members of Town Council

 

From:                     Jeff Brauer, Director of Parks and Recreation

 

Title

Resolution Approving a Real Estate Purchase Agreement for the Acquisition of Certain Property within the Plum Creek Planned Unit Development

Body

________________________________________________________________________________

 

Executive Summary

 

Discussions between the Town of Castle Rock and SW Greens Plum Creek, LLC, have resulted in common ground on terms for a proposed purchase and sale contract for property in the Plum Creek area as described in Exhibit A. The property includes 7.635 acres M/L and is offered at a negotiated purchase price of $525,000. Provisions on earnest money, marketability of title, inspection, conveyance by warranty deed and environmental conditions are identified in the contract provisions.  Staff is requesting Town Council consideration and approval of the real estate contract.

 

Inquiries were initiated in December 2018 concerning potential land acquisition in the Plum Creek area for the purpose of future park development. Town staff met with the ownership group over that time to discuss the possibility of an agreement on price and other transaction elements. Town Council conducted several executive sessions to review progress concerning the possible acquisition of the property. Town Council provided opportunity for public input on the land acquisition. The Town identified an appropriate funding source for this acquisition.

 

Discussion

 

The Town commissioned an independent appraisal of the property based on existing entitlements. Those appraisals are included in this packet as Attachment B. As a general rule, the Town follows land values set out in appraisals in making offers for land acquisition unless there are unique circumstances.

 

Town Council directed staff to engage the services of a qualified appraiser for this potential purchase. The appraisal was conducted by David M. Kilty, MAI, SRA of Kilty and Company. The purpose of the appraisal was to estimate the market value of the fee simple interest in these properties in their “as is” and “as zoned” condition as of January 23, 2019. Four parcels were appraised.

 

Two parcels that are subject of this appraisal are located on the north side of Emerald Drive that function as a part of the Plum Creek Golf Club property. The two parcels known as Lots 4 and 5 Tournament Players Club at Plum Creek Subdivision Filing No.1 Amendment No. 1 are zoned PD. Lot 4, consisting of 4.216 acres, is zoned for golf course, country club, roads and open space. Lot 5, consisting of 2.724 acres, is zoned for private open space. The owner indicated that only a portion of Lot 4 is available for consideration, so the net land area of Lot 4 that is available for sale is 2.809 acres.

 

Two land parcels on the south side of Players Club Drive and east of Plum Creek Boulevard, both known as Tract A, were also appraised. Tract A (east) is zoned PD and is designated for use as golf course, country club, roads and open space. Tract A (west) is zoned PD for residential Single Family Development.

 

In response, the ownership group provided an appraisal report prepared by Peter Elzi Jr. of THK Associates, Inc. The Town of Castle Rock and the ownership group continued efforts to arrive at a position between the appraisals presented by each party. 

 

On September 17, staff met with Town Council in an executive session to discuss efforts towards the acquisition of the property by the Town. In exploration of the owner’s interest to consider sale of the property to the Town, the Town responded with a revised offer with the primary considerations:

 

                     A purchase price of $525,000 for a portion of Lot 4, all of Lot 5 and two Tract A’s consisting of 7.635 acres M/L. The Town acknowledges an Owners condition of real estate closing to happen before December 1, 2019.

 

                     The purchase offer recognizes the intent of the seller to retain the parking lot of Lot 4 which is necessary for golf operations. The Town will be responsible for an administrative replat of Lot 4.

 

                     The Town acknowledged that the buyer is acquiring the property in its “as is” condition with all faults and defects. Seller shall have no obligation to remove any of the existing improvements.

 

Common ground between the parties was established on the primary considerations listed above.

 

Budget Impact

 

The Town has obtained an estimate on the cost for removal of the swimming pool and tennis courts which is approximately $150,000. Both the acquisition cost ($525,000) and the estimated cost to renovate the land to a usable condition ($150,000), will be specifically funded out of the Town’s cash-in-lieu revenue, and not general revenues. Cash-in-lieu revenue is generated when a proposed development is unable to provide land to meet the Town’s park land dedication requirements due to topography, size or location. Without a land dedication, the Town assesses a cash-in-lieu amount to the developer. These funds can be used in other areas of Town to meet the park land acquisition needs of the community.

 

Funding for the land acquisition and the site cleanup was included in the Third Quarter 2019 Budget Amendment and will be presented to Council for approval on second reading on November 5, 2019.

 

Currently, no funding has been approved or budgeted for the purpose of additional park improvements at this location.

 

Proposed Motion

 

“I move to approve the resolution as introduced by title.”

 

Attachments

 

Attachment A - Resolution

Exhibit 1 - Real Estate Purchase Agreement

Exhibit A - Property Description

Exhibit B - Permitted Exceptions

Attachment B - Kilty and Company Appraisal Reports

Attachment C - THK Associates, Inc. Appraisal Report