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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 of Service Development Officer |
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PRESENTER(S): |
Paul Drake, Director of Real Estate & TOC |
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Spencer Burgoyne, Manager of Property Administration |
TITLE:
title
Contract: Perry, Box Elder County Property Disposition (Eli and Brynlee Richins)
end
AGENDA ITEM TYPE:
Non-Procurement Agreement
RECOMMENDATION:
Approve and authorize the Executive Director to execute the real estate sales contract to sell the property UTA owns at 1500 West 2950 South, Perry, Utah for $350,000.
BACKGROUND:
In 2007, Box Elder County residents passed an initiative to allocate the second quarter sales tax to support the extension of commuter rail to Brigham City. With those accumulated funds, UTA is currently working with willing sellers to purchase a 50-foot corridor adjacent to Union Pacific’s track through Box Elder County. Acquiring these properties ahead of housing and commercial development will reduce future impacts and costs. UTA has developed right-of-way maps and other documents needed to purchase the land.
In May 2024, UTA purchased the property home located at 1500 West 2950 South in Perry City from Wallace and Kim Johnson for $360,000. UTA only needs a strip of land along the west property boundary for corridor preservation. However, the owners were only amenable to selling their entire parcel. To ensure acquisition of the corridor, UTA purchased the whole parcel, which is improved with a single-family home on a 0.38-acre lot, with the intent to quickly sell off the house and remainder parcel.
UTA staff hired a third-party real estate agent to market the property on the Wasatch Front Regional MLS since April 25, 2024. There were 27 showings and four offers received. This contract from Eli and Brynlee Richins is the highest offer at $350,000.
DISCUSSION:
Selling this property helps fulfill both UTA’s and Box Elder County’s long-range goal to preserve corridor from Ogden to Brigham City.
CONTRACT SUMMARY:
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Contractor Name: |
Eli and Brynlee Richins |
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Contract Number: |
24-P00364 |
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Base Contract Effective Dates: |
N/A |
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Extended Contract Dates: |
Settlement Deadline by July 18, 2024 |
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Existing Contract Value: |
N/A |
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Amendment Amount: |
N/A |
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New/Total Contract Value: |
$350,000 less closing costs |
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Procurement Method: |
Highest and Best |
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Budget Authority: |
Approved 2024 Capital Budget |
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ALTERNATIVES:
Hold the property for a potentially higher sales price which would be offset by any holding costs and potential risks, and lost opportunity cost to continue corridor preservation efforts with those funds.
FISCAL IMPACT:
The proposed sales contract will restore $350,000 (less closing costs) to the Box Elder Right-of-Way Preservation line item which is included in the UTA 2024 Capital Budget and the approved UTA 5-year Capital Plan.
ATTACHMENTS:
1. Contract
2. Maps (2)
3. MLS Listing