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Excess Real Property Disposal Update
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Title
Excess Real Property Disposal Update
Description
This report updates the Land Use and Livability Subcommittee on the status of the City's efforts to appropriately dispose of excess real property. Further, this report requests the Subcommittee recommend City Council authorization to dispose by broker, quitclaim or sealed bid solicitation three properties determined by staff to be excess real estate.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Since approximately June 2014, City departments have disposed of 428 parcels consisting of approximately 183 acres, valued at more than $56.9 million. For more detail on property sales, see Attachment A - Excess Real Property Disposals.
Excess Real Property Inventory
Currently a total of 422 parcels are listed on the excess property inventory, with ongoing review of this inventory to determine the means and timing of disposal, based on various factors such as current use and market conditions. Of these:
26 are under contract, for sale or in negotiation.
4 will be sold pending federal approval.
202 will be disposed via current or future Requests for Proposals.
2 are to be sold via sealed bid.
22 are to be transferred via quitclaim.
166 are under staff review to determine means and/or timing of disposal, including 144 Housing scattered sites.
A full list and map of parcels currently for sale, sold and under view can be viewed on the City's "Properties for Sale" website, phoenix.gov/PHXProperties.
Status of Excess Park Land Sales for Phoenix Parks and Preserve Initiative Fund Repayment
On July 6, 2017, Phoenix City Council adopted Ordinance S-43701 directing proceeds of the sale of City park land not otherwise encumbered to the Phoenix Parks and Preserve Initiative Fund. Up to $15,032,000 is to be repaid over a five-year period to cover previous transfers from the Fund for golf course debt retirement. To date, three such properties have been sold with proceeds of $3,279,295. Two additional parcels are currently for sale or under contract with expected proceeds of $3,300,000. This brings the estimated total proceeds for properties sold, for sale or under contract to $6,579,295.
Five additional unrestricted excess park land parcels may be disposed pursuant to the public notification process for the sale or disposition of park land set by the Parks and Recreation Board, as well as City Council authorization: These parcels are identified below by Assessor Parcel Number (APN):
APN 102-38-005L - Vacant land near 79th Avenue and Thomas Road
APN 106-23-100 - Vacant land at 3725 W. Sherman St.
APN 109-59-937 - Vacant land adjacent to Kuban Park, near Buckeye Road and 31st Avenue
APN 112-03-095A (portion) - Building near Woodland Park near 9th Avenue and Van Buren Street
APN 201-33-564 - Undeveloped park near Stetson Hills Loop and Happy Valley Road
Recommended Subcommittee Actions on Excess Properties
Staff requests the Subcommittee recommend City Council authorization to dispose of three parcels, as follows:
Human Services Department
Approximately 8.3 acres of vacant land zoned A-1 at 5220 W. Lower Buckeye Road identified by APN 104-40-011. The City acquired this parcel in 2004 for future development of a Southwest Phoenix senior services center. However, further discussion is taking place on the development of a senior center near the planned Cesar Chavez Community Center with the proceeds from the sale. Staff recommends disposing this property via broker sale.
Water Services Department
Approximately 40 acres of vacant land located northeast of Santa Fe Avenue and 5th Street in Wenden, Ariz., identified by APN 308-06-005C. The City originally purchased this and other land in the McMullen Valley area of La Paz County in 1986 for harvesting groundwater to supplement City water supply. Since that time, the City has augmented water supplies with additional surface water resources. In addition, subsequent analysis showed that the cost for infrastructure needed to import the water to the City would be excessive. Therefore, staff recommends disposing this property via broker sale or sealed bid solicitation.
Approximately 5,227 square feet of land northwest of Camelback Road and 45th Avenue in Glendale, identified by APN 145-28-018. As this site is improved with City of Glendale water infrastructure that does not support the City of Phoenix water supply, Water Services recommends transferring ownership of the site to Glendale via quitclaim.
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher, Assistant City Manager Deanna Jonovich, Deputy City Managers Karen Peters and Toni Maccarone, and the Water Services, Human Services, Parks and Recreation, and Finance departments.