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HomeMy WebLinkAboutHRA III.a. Oliver's Grover, Transfer of OwnershipJune 1, 2009 TO: Hastings HR-1 FROM: John Cn'ossman RE: Transfer of ownership of Olivers Cn'ove to City of Hastings Action: Public healing and resolution authorizing execution of deed. Backeround: The HRH ordered the preparation of deeds for the transfer of its real estate to Hastings EDR-1 by resolution 1-2009 on Janu:ny 8, 2009. Subsequently on February 12, 2009 the EDRA approved transferring the Oliver's Grove properly to the City rather than to EDRA. This hearing and resolution will effect that direction. The reasons for the transfer to the City instead of EDRA include 1) the property is in a National Register Historic District, so any new conshuction would have to be compatible with the e~sting character; 2) two proposals to construct a ne~a~, t~a~o-story brick commercial building on the lot did not prove to be financially feasible; 3) the adjacent properly on the west has existing east-facing windows; 4) as a park space with trees and seating, it serves as a downtown attraction and atnenity; 5) off street public puking for apartment tenants is scarce in this area; 6) the properlu has been maintained by the City Parks Department for 15 years. Facts: The properly ~a~as acquired in 1985 with the adjacent building to flte ~a~est with the intent to cure a blighting situation. The building was in need of rehabilitation and the vacant properly was an unsurfaced, weedy lot, detracting from the appearance of the dov~ntov~n area. The cost of the entire property was $85,000, of that, approximately $20,000 would have been the value of the vacant lot. In 1989 the building was resold for rehabilitation for $3,240.00. The assessor's market value of flee building at fltat time was $79,000; it is now $253,000 . In 1990 the HRA decided to clean up the vacant lot and make it an attraction for downtown while holding it for redevelopment. The cost of the improvements was $60,000. The current assessor's market value of the Olivers Grove property, including the improvements is $87,200. The property will be transferred, not sold. Transfer to the City for public purposes is authorized under the HR-1 stahrte. The HRA has achieved public purposes for the acquisition: elimination of blight and redevelopment of an e~sting building to sfl engflten flte do~vnto~vn commercial and apartment markets. Options: 1) No change - EDRA continues to hold the property for redevelopment. Redevelopment is not likely in the foreseeable future. The cost of new construction is not supported by the local commercial and apartment rents, even with the lot donated to a development. 2) City takes ownership for public purposes. This has been the `existing condition" since 1991. .~s a park, the Cil}' policies would apply to it and the Parks and Recreation Department will manage it. The cost of maintenance has been carried by the Parks budget for many years, so no increase in city costs is expected. Local volunteers frequently plant and maintain the flower beds. 3) In event of a future redevelopment proposal: If conditions changed so that a feasible development was proposed for the property, and it had broad public support, the property could be transferred by the City Council, following the charter provisions, to the EDRA for redevelopment. Recommendation Staff recommends approval of the resolution transferring the properly to the City of Hastings.