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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Dave Hancock, Acting Chief Service Development Officer |
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PRESENTER(S): |
Paul Drake, Director Real Estate & TOD |
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Spencer Burgoyne, Manager of Property Administration |
TITLE:
title
R2021-12-07 - Resolution Authorizing the Purchase of Real Property as part of the UVX Project and Settlement Agreement with University Place SPE, LLC
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2021-12-07 authorizing the Interim Executive Director to execute the contract for the purchase of real property located at 575 East University Parkway, Orem, UT 84097 for the UVX (BRT) Project.
BACKGROUND:
UTA entered into negotiations with the property owner represented by Woodbury Corporation on 8/16/17. The UVX project design for this location was modified at the owner’s request, and a new offer was presented on 1/24/18 for the appraised value of $1,428,800. This property is occupied by over 150 tenants at University Mall in Orem. Woodbury Corporation requested that we enter into a “friendly” condemnation to clear all tenant issues. Since then, UTA has been in regular contact and negotiations with the owners, tenants and their respective attorneys trying to settle the acquisition.
The attorneys for all parties have reached a settlement agreement in the amount of $1,582,868. UTA sought FTA concurrence on the Administrative Settlement amount of $154,068 and on February 2, 2021, the FTA issued a concurrence on the acquisition, specifically concurring that the settlement amount is reasonable, prudent and in the public interest.
DISCUSSION:
Project construction is complete on this project. The Property Owner granted UTA a Permit to Enter and Construct to complete the necessary work on this parcel, while the condemnation action was proceeding.
ALTERNATIVES:
The consequences of not moving forward with the approval process could result in additional court expenses or further delays in settling the matter.
FISCAL IMPACT:
This cost is included in the approved UVX BRT project budget.
ATTACHMENTS:
R2021-12-07 - Resolution Authorizing the Purchase of Real Property as part of the UVX Project and Settlement Agreement with University Place SPE, LLC