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6.b.
TCEDC Agenda
Meeting Date:
09/21/2022
Approval of Purchase of Property Located at 732 Martin Luther King Drive
Submitted For:
Jon Branson
Submitted By:
Jon Branson, Management Services
Department:
Management Services
ACTION REQUEST (Brief Summary)
Consideration and approval of the purchase of property located at 732 Martin Luther King drive for a total price of $10,000.
BACKGROUND
In May of this year, the home on this property was demolished due to its uninhabitable condition. The appraised value of the property as of April 7th of 2022 was $20,000 and the property is currently being listed in the MLS for the appraised value. The property is currently owned by Seattle Bank. REO Management Solutions an agent for Seattle Bank reached out to Staff to inquire about our interest in purchasing the property from Seattle Bank. The home that was on the property had a HUD Insured Home Equity Conversion Mortgage (HECM) and therefore, is subject to guidelines and appraised values dictated by HUD. Seattle Bank appealed the appraised value to HUD and was able to reduce it to $10,000 which is their current asking price. It is important to note the TCEDC owns several parcels of property immediately adjacent to this property.
The TCEDC regularly purchases and sells property at $2.45 per Square Foot. Based on the established $2.45 square footage price, this property would be valued at approximately $15,941 therefore, the asking price is reasonable.
ANALYSIS
The proposed sale of the property to the TCEDC in the amount of $10,000 is less than the TCEDC established per square foot purchase price. The property is adjacent to existing TCEDC owned properties and the proposed purchase of the property is in-line with the TCEDC past practice of acquiring property in the Industrial Business District to create a buffer between residential areas and local industry. Therefore, the proposed purchase of the property is recommended for approval.
ALTERNATIVES CONSIDERED
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