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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Mary DeLoretto, Interim Executive Director |
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PRESENTER(S): |
Paul Drake, Director Real Estate & TOD |
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TITLE:
title
Contract: Real Estate Purchase - Parcel 1072 on 750 North, Willard, Utah (Terry M. Deru)
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AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve the Real Estate Purchase Contract (“REPC”) with Terry M. Deru and authorize the Executive Director to execute the REPC and associated documents.
BACKGROUND:
In August 2020, UTA purchased 3.77 acres of land, identified as Box Elder County Tax ID 02-043-0025, as part of a future transit corridor between Ogden and Brigham City. UTA needs to acquire an additional 50’ strip along the existing rail line from the adjacent parcel identified as Tax ID 02-043-0023, which is owned by Mr. Terry M. Deru.
During negotiations, it was determined that both parties would benefit from a larger land exchange. The proposed exchange would result in UTA owning a rectangular parcel of roughly 5 acres, while Mr. Deru would benefit from increased frontage along 750 North Street in Willard, Utah. Mr. Deru has agreed to exchange 139,427 square feet of property for the equivalent value of land (83,811 square feet) and $210,800 cash, based on an appraisal by Van Drimmelen & Associates.
UTA will dedicate a public utility easement along 750 North, and Mr. Deru will install a sewer line in that easement which UTA can utilize for future development. Mr. Deru is also dedicating roadway and utility easements through the adjacent subdivision that will benefit UTA’s parcel in the future.
DISCUSSION:
The exchange will preserve the corridor on the current Deru parcel and will make UTA‘s property more functional for a potential future station site.
ALTERNATIVES:
Reject REPC and leave property as is. Such would be detrimental to the corridor preservation effort.
FISCAL IMPACT:
UTA would acquire 139,427 square feet of property in exchange for 83,811 square feet of property plus the net equivalent value of $210,800. The funding for this transaction is included in the approved capital budget.
ATTACHMENTS:
1) Real Estate Purchase Contract