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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
David Hancock, Chief Capital Services Officer |
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PRESENTER(S): |
Paul Drake, Director Real Estate & TOC |
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TITLE:
title
R2024-03-07 - Resolution Authorizing the Purchase of Real Property from Goldenwest Credit Union for the OGX BRT Project (Parcel 150)
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2024-03-07 authorizing the Executive Director to execute a real estate purchase contract for total acquisition of the Goldenwest Credit Union property for the Ogden-Weber State Bus Rapid Transit Project (OGX).
BACKGROUND:
UTA is in the final stages of purchasing a 5.3-mile corridor connecting the Ogden FrontRunner commuter rail station to Weber State University (WSU) and McKay Dee Hospital for the OGX BRT Project.
The OGX Project requires a strip of land (Parcel 150) and a temporary construction easement (Parcel 150:CE) from a property located at 3225 South Harrison Boulevard, Ogden.
The parcel is identified as Weber County Tax Parcel 04-017-0002. It is owned by Goldenwest Credit Union, a Utah corporation and is improved with a bank building constructed in 1982. The partial acquisition and easement are along the property frontage on Harrison Boulevard.
DISCUSSION:
The OGX project construction is complete. However, UTA needs to settle this acquisition to close out the FTA grant.
UTA offered $296,600 for the partial acquisitions based on the original appraisal and review appraisal in July 2021. During negotiations, the owners disagreed with the valuation claiming severance damages for the following reasons: proximity to Harrison Boulevard, reduced drive-through stacking, and loss of access.
On September 30, 2021, Goldenwest signed a Right of Entry and Occupancy Agreement (ROO) to allow the project to move forward during negotiations. The ROO was recorded on October 6, 2021, and $296,600 was deposited into escrow.
Over several months, UTA and Goldenwest held several meetings to discuss a cross-access agreement and various design details such as: flagpole relocation, storm and roof drainage, the retaining wall, and vehicle stacking in the drive-up lanes.
On January 14, 2022, Goldenwest ordered a second appraisal through the Utah Property Rights Ombudsman. The second appraisal was performed by David Cook on October 1, 2021. The concluded value of the partial acquisition (including damages) was $737,000 and the value of the total property was $1,825,000.
On August 4, 2022, UTA participated in a mediation with Goldenwest and the Utah Property Rights Ombudsman. Settlement at the mediation failed; however, the parties agreed to obtain a third appraisal and split the cost.
The third appraisal was performed by Chad Rigby, MAI on December 2, 2022. The value conclusion of the partial acquisition (including damages) was $850,000 and the value of the total property was $1,750,000.
After a long period of negotiations and legal considerations, UTA staff and Goldenwest have drafted a proposed settlement contract with the following terms:
Subject to FTA concurrence and UTA Board approval, UTA staff and Goldenwest have drafted the attached purchase and sale agreement based on the following terms:
1) Goldenwest to voluntarily sell UTA the whole property.
2) UTA will pay a purchase price of $1,787,500 based on the average of the two most recent appraisals ($1,825,000 and $1,750,000).
3) UTA will grant Goldenwest a right of first refusal to purchase the adjacent parcel north when UTA surpluses that property.
4) UTA will leaseback the property to Goldenwest at a market-based rent of $5,000 per month (NNN) while they build a new building for a maximum of three years.
ALTERNATIVES:
The consequences of not moving forward with this purchase include litigation costs and the possibility that the courts may approve a higher award and relocation benefits to the owner.
FISCAL IMPACT:
The OGX BRT project is included in the UTA 2024 Capital Budget and the approved UTA 5-year Capital Plan. The cost to purchase the total property is within the project budget.
ATTACHMENTS:
1) Resolution, including Purchase and Sale Agreement as an exhibit
2) Maps (2)
3) AG Legal Opinion