Title
Authorization to Sell Approximately 4,900 Square Feet of Land Along the East Side of North 7th Street and Amend Lease Agreement 48385 (Ordinance S-49719)
Description
Request to authorize the City Manager, or his designee, to sell approximately 4,900 square feet of City-owned land along the east side of north 7th Street, south of Thunderbird Road, to 11111 North 7th Street Property DE, LLC, its successors and/or assigns; and to amend Lease Agreement 48385 to modify the leased area to remove the portion of land sold. Further request to authorize the City Manager, or his designee, to dedicate an approximate 25-foot strip of land directly adjacent to the east side of 7th Street to public use for right-of-way purposes via separate recording instrument. Additionally request to authorize the City Treasurer to accept all funds related to sale of the real property.
Report
Summary
The land to be sold is approximately 4,900 square feet and is part of a 65-year lease for 32 acres of City-owned land. The leased land, combined with the adjacent property currently owned by 11111 North 7th Street Property DE, LLC, (Lessor) was developed into Lookout Mountain Golf Course, operated by the Phoenix Tapatio Cliffs Resort. The 4,900 square feet of land is improved with a driveway and golf cart path that provides exclusive ingress and egress from north 7th Street to a private drive and golf course parking lot. The Lessor requested to purchase this portion of the leased site to maintain access in perpetuity to a driveway and parking lot on the privately-owned portion of the golf course property. Disposition of this land will have no adverse impact on the remainder of the City-owned property and will alleviate any liability the City may have as underlying fee owner of the driveway.
The land will be sold "as-is." The City and buyer will enter into a purchase agreement with terms and conditions acceptable to the City for fee simple conveyance by special warranty deed. Upon conveyance of the land, the lease will be amended to exclude the approximate 4,900 square feet from the leased area. Excluded from disposition is a 25-foot strip of land along the 7th Street frontage to match the 65-foot right-of-way north and south of the City-owned property, to be dedicated as right-of-way by separate conveyance instrument.
Financial Impact
Revenue will be reflective of the market value of the property.
Concurrence/Previous Council Action
- City Council approved Lease Agreement 48385 (Ordinance S-17616) on Feb. 24, 1988.
- The Parks and Recreation Board recommended approval of the disposition on Feb. 23, 2023, as Agenda Item 3b by a vote of 6-0.
Location
Along the east side of north 7th Street; south of Thunderbird Road, identified by Maricopa County Assessor parcel number 159-01-004C.
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Inger Erickson and the Park and Recreation and Finance departments.