Title
Approval of a Resolution Authorizing a Purchase and Sale Agreement for the Sale of Certain Excess City-Owned Real Property to Goldwin and Eugina Dempsey
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution authorizing the sale of certain excess City-owned real property to Goldwin and Eugina Dempsey.
Report
Issue:
Whether to approve the sale of certain excess City-owned real estate to Goldwin and Eugina Dempsey.
Staff Contacts:
Steve Sperr, Assistant City Engineer, Public Works Department, 360.753.8739
Michael Young, Deputy City Attorney, Legal Department, 360.753.8338
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City of Olympia is the owner of certain real property located in Thurston County, Washington, consisting of an approximately 250 square foot rectangle (“the Rectangular Property”) as shown on the Property Location Map.
Goldwin and Eugina Dempsey own certain real property located at 1330 7th Ave SE in Olympia (the “Dempsey Property”). The Rectangular Property is located at the northeast corner of the Dempsey Property and is embedded in their lot; i.e., the Rectangular Property is bordered by the Dempsey Property on the west and south and bordered on the north by a 20-foot wide unopened and unused City of Olympia alley, running east-west at this location.
In September 2022, the Dempseys commissioned a survey of their property, which revealed that the Rectangular Property was not a part of the Dempsey Property as they and their predecessors had long believed but was owned by the City. Prior to this revelation, the Dempseys, and their predecessors, had assumed that the Rectangular Property was part of the Dempsey Property and had treated it as such, including constructing and maintaining a garage on part of the Rectangular Property, which had stood for decades, before it was recently torn down due to its dilapidated condition. The City and Thurston County, also, did not realize that the Rectangular Property was owned by the City. The Rectangular Property was not identified as being owned by the City in the Thurston County Assessor’s parcel information, and the City’s own inventory of properties under its ownership did not show the Rectangular Property as being City-owned.
The Rectangular Property is not, and has not been, used by the City for any municipal purpose; in particular, the Rectangular Property is not used by the City for municipal utility purposes or for transportation services.
Pursuant to the City’s Procedures for the Evaluation of City Real Property for Reuse and Disposal, City staff have determined that the Rectangular Property is “Excess Property” not needed for any current or future City use. Further, given the unique size and shape of the Rectangular Property, and its adjacency to the Dempsey Property, it is clear that it will have basically no value to any City Department, any other government agency, or any private party, other than the Dempseys. City staff therefore determined that the provision of notice of potential disposition of the Rectangular Property should be dispensed with.
The Dempseys wish to purchase the Rectangular Property from the City so they can incorporate it into their lot and proceed with re-constructing their garage. The Dempseys have indicated they are willing to pay the fair market value for the Rectangular Property, as determined by the City, and are willing to pay all closing and other costs associated with the purchase of the Rectangular Property.
Staff has concluded negotiations with the Dempseys and has prepared the Real Estate Purchase and Sale Agreement attached to this staff report.
Climate Analysis:
The sale of this property is not anticipated to impact (neither increase nor reduce) carbon emissions.
Equity Analysis:
The sale of this property is not expected to further impact known disparities in our community.
Neighborhood/Community Interests (if known):
This action will relieve the City of Olympia, and therefore its taxpayers, of any obligations to maintain the property and of any potential liabilities associated with owning it.
Financial Impact:
Using the average value of the land per the Thurston County Assessor for the years 2021, 2022, and 2023 and dividing that by the assessed square footage of the parcel, the City’s former City Surveyor determined the fair market value of the Rectangular Property is $2,765.00. The City will receive this amount as part of the sale of the Rectangular Property.
Options:
1. Approve the Resolution authorizing the sale of certain excess City-owned real property to Goldwin and Eugina Dempsey and authorize the City Manager to execute all documents necessary to sell said property consisting of approximately 250 square feet of real estate.
2. Do not approve the Resolution authorizing the sale of certain excess City-owned real property to Goldwin and Eugina Dempsey. This will preclude the Dempseys from re-constructing their garage and will leave maintenance of the property and potential liabilities associated with owning it to the City.
3. Direct staff to seek other options.
Attachments:
Resolution
Agreement
Property Location Map