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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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Spencer Burgoyne, Manager - Property Administration |
TITLE:
title
R2024-06-05 - Resolution Authorizing the Disposition of 4.096 Acres of Land at 5651 W. Old Bingham Highway in West Jordan, Utah to South Jordan City and Rocky Mountain Power for the Grandville Avenue Roadway Project
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2024-06-05 authorizing the Executive Director to execute two real estate contracts for the disposition of 4.096 acres of land at 5651 W. Old Bingham Highway in West Jordan, Utah.
BACKGROUND:
UTA purchased a 23.16-acre parcel in August 2008 for a park-and-ride lot serving the Mid-Jordan TRAX Project located at 5651 W. Old Bingham Highway, West Jordan. The cost was $4,401,546. The east half of the property includes a park-and-ride and bus loop. Currently, the west half remains undeveloped.
UTA purchased additional property to settle a condemnation action and to avoid leaving the seller an inutile remnant parcel. The land was purchased using 80% federal assistance under grant #UT-03-0055. UTA staff followed the real estate disposition rules found in FTA Circular 5010.1E, Chapter IV(2)(j) for this request. FTA issued its concurrence on March 21, 2024.
South Jordan City is working to extend Grandville Avenue northward from Lake Avenue to Old Bingham Highway, as identified in their long-range plan. The only viable alignment is through the UTA property, bifurcating the property into two parcels. The new road extension will enhance connectivity to the UTA station from the south, and the proposed dispositions will not impact UTA’s current facilities or projected future expansion.
The Grandville Avenue Project also impacts future expansion of the Rocky Mountain Power (RMP) substation located adjacent to the UTA property. To mitigate the impact, the City has requested that UTA sell additional property to RMP.
DISCUSSION:
South Jordan City desires to purchase 1.847 acres (80,455 SF) of land for the roadway (Parcel 3). The City also desires UTA to sell 2.275 acres (99,096 SF) of land to Rocky Mountain Power (Parcel 3A) to preserve a power corridor to Old Bingham Highway. Combined, the two fee dispositions include 4.096 acres of land area.
The dispositions were appraised at $9.00 per square foot of land, plus 10% ($129,240) in damages to the remainder parcel. South Jordan City and Rocky Mountain Power will each pay UTA an equal share of the severance damages ($64,620). The purchase prices are summarized below:
Parcel 3 (South Jordan City) = $788,715 (80,455 SF x $9.00 per SF, plus $64,620)
Parcel 3A (Rocky Mountain) = $956,484 (99,096 SF x $9.00 per SF, plus $64,620)
ALTERNATIVES:
UTA can refuse to sell the property. This would preclude the planned road connection to Old Bingham Highway, challenge relationships with South and West Jordan Cities, and limit access to UTA’s remaining parcels.
FISCAL IMPACT:
The combined sales price is $1,745,199.00, which proceeds must be used to fund a future federally- assisted project.
ATTACHMENTS:
1) Parcel Maps (2)
2) FTA Concurrence, dated March 21, 2024
3) Resolution R2024-06-05, including the following as exhibits:
a. Purchase and Sale Agreement with South Jordan (UTA Contract 24-00358-1)
b. Purchase and Sale Agreement with Rocky Mountain Power (UTA Contract 24-P00358)