Item Coversheet
Item #9.

Staff Report 054-21

TO:

Mayor and City Council




FROM:

Eric Holmes, City Manager




DATE:

4/5/2021








SUBJECT


Approval of Disposition Real Property located at 900 West Evergreen Blvd. and approval of Purchase and Sale Agreement
Key Points
  • The former Fire Station 1 is located at 900 W. Evergreen Boulevard and consists of a 14,500 square foot building on 0.88 acres.
  • City Council declared the former Fire Station 1 surplus to the City on March 16, 2015, per Resolution No. M-3852 and approved the method of disposition as direct negotiations with abutting property owner, West Evergreen LLC, on December 7, 2020, per Resolution No. M-4107.
  • In early 2019, Josh Oliva, manager of West Evergreen LLC, and whose various business interests own several adjacent and nearby properties, approached the City with an offer to purchase and renovate the building and property for re-use as creative office space. 
  • The property was appraised in July 2020 for $1,425,000 “as-is” value. After further review by the appraiser with consideration of asbestos remediation and roof repair, the assessed value has been reduced to $1,255,000.
  • The Oliva family owns property at  911 W. 11th Street, adjacent to Fire Station 1 and several other properties in the immediate vicinity, and has shared plans to, over time, renovate and adaptively reuse several buildings in their ownership to create a more vibrant employment district in a historically industrial area of downtown.

Strategic Plan Alignment

 

Goal 8, Objective 8.1: Make downtown Vancouver a vibrant destination for the community and the region.

 

Goal 8, Objective 8.2: Strengthen neighborhood business districts.


Present Situation

Council approved an ordinance (M-3923) which allows for disposition of real property that has been declared surplus.  The ordinance has 2 steps; first Council must declare the property as surplus and second Council approves the disposition of the property.  This action is step two of the process.

 

The City of Vancouver utilized this property for public safety (Fire Station) upon its purchase in 1968 until 2018 when a new station was constructed.

 

With the re-location of Fire Station #1, the property is no longer being put to any municipal use by the City of Vancouver.  Disposition of this site to West Evergreen LLC will provide fair market value to the City of Vancouver and further the goal of making downtown a vibrant destination.

 

The City was approached by Josh Oliva, whose family controls adjacent parcels and other properties in the immediate vicinity of the site, to purchase and renovate the building and property for creative office use, as part of a broader plan to revitalize other properties in their control for offices and residences, resulting in a more active entrepreneurial district. 

 

The City's surplus and disposition regulations permit direct negotiations with abutting property owners of city property to be disposed. City staff is recommending approval of disposition of the property and approval of a purchase and sale agreement with West Evergreen LLC.  As part of the due diligence, asbestos was discovered on the site and it was determined that the roof needed replacement. With this information, the appraiser reviewed the appraisal and reduced the value to $1,255,000. The negotiated sale price of $1,325,000 exceeds adjusted appraised value.

 

The parcel submitted for Council review for approval of disposition is attached in a detailed report and a map is attached.  This parcel is identified as City of Vancouver Old Fire Station #1.


Advantage(s)
  1. Approving this property for disposition will allow for potential development within the downtown core and ultimately place this parcel within the tax base.  It will also generate revenue to the City.

  2. Approval of purchase and sale agreement with abutting property owner will allow for City interests beyond sale price to be discussed transparently

  3. The abutting property owner has a proven record of delivering high quality projects that have resulted in a significant increase in community vitality.


Disadvantage(s)
No disadvantages identified.
Budget Impact

Replenishes the City’s General Fund for a portion of the capital invested in replacement Fire Station 1


Prior Council Review

Action Requested

On Monday, April 5, 2021, following a public hearing, adopt a resolution approving disposition of the real property located at 900 West Evergreen Blvd. and approve Purchase and Sale Agreement between City of Vancouver and West Evergreen LLC.

 

Linda Carlson, Property Management Specialist, 360-487-8423; Chad Eiken, Community and Economic Development Director, 360-487-7882

 


ATTACHMENTS:
Description
Resolution
Legal Description and sketch
Property Disposition Report
Map
Purchase and Sale Agreement
Presentation