Title
Voluntary Property Acquisition - 4108 E. Air Lane (Adonai Properties, LLC)
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval of the acquisition of real property comprised of 17,930 square feet located at 4108 E. Air Lane (Property). The acquisition will be by voluntary purchase from Adonai Properties, LLC at a price within the Property’s appraised value of $775,000. The Property is currently occupied and a temporary occupancy agreement may be needed to allow the tenant enough time to vacate. If an agreement to purchase cannot be reached at this time, the Property will be acquired at a later date using available means, including potentially eminent domain.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Adonai Properties, LLC. has been interested in selling its real property for some time and initiated the voluntary acquisition process in September 2018. The Property is a 17,930 square feet improved parcel owned by Adonai Properties LLC. The Property is owner-occupied and is improved with a 6,267 square feet office building and 6,088 square feet of canopy area for storage. The appraised value is $775,000. The appraisal was conducted by an independent, third-party appraiser and reviewed by another independent, third-party appraiser. A Phase I Environmental Site Assessment (ESA) and a Phase II Limited Site Assessment were completed in January 2020. These site assessments concluded that no contamination needing remediation existed. Close of escrow is contingent upon the completion of an updated Phase I ESA, as required by the City’s A.R. 3.95 and federal regulations. Any changes to the environmental condition of the Property will be considered by the appraiser to determine if adjustments to the appraised value are necessary.
The Property is north of Phoenix Sky Harbor International Airport (Airport) and is a strategic voluntary acquisition important to the Airport’s future growth. After the Property is purchased, the Aviation Department will demolish the improvements and prepare it for future Airport development.
Financial Impact
The cost to acquire the improved site ($62.73/square feet) and demolition are estimated at $950,000. This cost may be reimbursable under federal guidelines using Airport Improvement Program (AIP) grants or Passenger Facility Charges (PFC) funds.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board (PAAB) recommended this item for approval on Jan. 21, 2021 by a vote of 8-0.
Location
4108 E. Air Lane
Council District 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.