Title
Update on Park Land Sales
Description
This report provides the Land Use and Livability Subcommittee an update on previous and pending park land sales, in which proceeds go into the Phoenix Parks and Preserves Initiative fund.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
In 2013, the City Council voted to address a deficit that had accumulated in the Golf Program by transferring funds from the Phoenix Parks and Preserves Initiative (PPPI) fund to cover the deficit. The result was a transfer from the PPPI fund to the City’s General Fund in the amount of $15.032 million.
In 2017, the City Council inquired about a plan to return funds to PPPI, equal to the $15.032 million payment. On May 24, 2017, the Parks, Arts, Education and Equality Subcommittee discussed options for returning the funds to PPPI. The subcommittee recommended to the full City Council that proceeds from all eligible City land sales, including park land, be utilized to return funds to PPPI, until the $15.032 million is returned. On July 6, 2017, City Council adopted Ordinance S-43701 directing proceeds of the sale of City park land, not otherwise restricted, to the PPPI fund. The repayment is to be made over a five-year period, to cover previous transfers from the fund for golf course debt retirement.
Of the excess parcels identified by the Parks and Recreation Department, three undeveloped park properties have been sold since the ordinance was passed. The net proceeds were $3,279,295 and used to repay the PPPI fund.
In addition, other eligible payments have been allocated including lease payments, easement fees and intra-department transfers in the amount of $5,180,165.
Further, there are two properties under contract to be sold by March 2021. The estimated net proceeds will be $5.6 million, which will bring the total payments to $14.1 million, leaving a balance of approximately $928,000. It is anticipated that the debt will be retired by 2022, prior to the five-year period. An additional 11 parcels were deemed excess, but have restrictions on proceeds (for example, they were purchased with impact fees) and not eligible for repayment to the PPPI fund.
Attachment A identifies the sold properties and other revenues applied to the PPPI fund, and properties under contract.
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Parks and Recreation Department.