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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Dave Hancock, Chief Capital Services Officer |
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PRESENTER(S): |
Paul Drake, Director of Real Estate & TOD |
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Spencer Burgoyne, Manager of Property Administration |
TITLE:
title
R2023-09-02 Resolution Authorizing the Purchase of Real Property from Edward and Carol Marquez for the OGX Bus Rapid Transit Project (Parcel 153)
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2023-09-02 authorizing the Executive Director to purchase the subject property located at 3195 Harrison Boulevard, Ogden for the OGX Bus Rapid Transit (BRT) Project under the proposed contract terms.
BACKGROUND:
The subject property is improved with a convenience store/gas station and an attached automotive repair shop owned by Edward P. and Carol A. Marquez. The convenience store is leased by 7-Eleven, Inc. though August 2037. The auto shop is vacant.
UTA made the first offer to purchase the property in June 2019 and has been in regular contact and negotiations with the owners, tenants and their respective attorneys attempting to settle the acquisition.
In February 2021, the UTA Board approved R2021-02-03 to petition UDOT to exercise eminent domain to purchase the property. In March 2021, UTA received access from the owners and tenant to allow UTA construction to move forward.
The owners (Marquez) have agreed to sell the property for $2,070,000. This amount is based on an appraisal prepared by Jeremie Snowder, MAI with a valuation date of February 19, 2021.
The tenant (7-Eleven) has agreed to settle its leasehold interests for $370,000. This amount is based on an appraisal prepared by Jeremie Snowder, MAI. The tenant has a contract lease rate that is significantly below current market rates through August 2037.
DISCUSSION:
Project construction is completed. UTA staff and legal counsel recommend moving forward with the proposed settlements subject to FTA concurrence.
ALTERNATIVES:
The consequences of not moving forward with the settlements include potentially higher settlement amounts and the legal costs associated with a condemnation action.
FISCAL IMPACT:
The OGX BRT Project is included in the UTA 2023 Capital Budget and the approved UTA 5-year Capital Plan. The proposed contract costs to purchase the property are available in the project budget.
ATTACHMENTS:
1) Resolution R2023-09-02