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CONTRACT K-1516-99: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND TOM AND CARLA POOLE IN THE AMOUNT OF $92,400 PLUS CLOSING COSTS FOR THE PURPOSE OF PURCHASING REAL PROPERTY LOCATED AT 115 WEST ACRES STREET AND BUDGET APPROPRIATION FROM THE NORMAN FORWARD CAPITAL FUND BALANCE.
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BACKGROUND: In 2008, the City identified approximately 7.29 acres contained in 7 parcels generally located north of Acres Street and west of the BNSF railroad tracks as a site for a future Norman Public Library Central branch. That same year, the City, by contract K-0809-58, purchased 1.74 acres of that area that was commonly known as the “Grain Elevator Site” for $350,000. Design work has been updated for a new library on this site during the last year and the affirmative vote of the citizens of Norman on Ordinance O-1516-5 (“Norman Forward”) has provided a source of revenue that will, among other things, support the acquisition of the remaining property for the new central library.
In anticipation of the Norman Forward vote Staff approached all of the identified property owners over the last several months to determine acquisition costs for the parcels. An update on these discussions was provided to City Council during an executive session on September 22, 2015. Voters approved the Norman Forward Sales Tax ballot on October 13, 2015. Council approved the purchase contract for parcel No. 1 on October 27, 2015. Council approved the purchase contract for parcel No. 3 on November 10, 2015. Executive Session was again held on December 15, 2015 to discuss possible acquisition of the residential properties included in the site plan for the new library. Council approved the purchase contract for parcel No. 7 on December 22, 2015. There are three remaining residential properties that Staff has negotiated within the parameters discussed in the most recent Executive Session. Staff brings forward Contract K-1516-98 with Tom and Carla Poole, the owners of one of the remaining residential properties for Council’s consideration.
DISCUSSION: The parcel owned by Tom and Carla Poole (Parcel 4 on the attached map) is one of three remaining residential properties to be purchased for the new central library site. It is currently zoned R-3: Multi-Family Dwelling. The parcel has a 1,086 square foot home on it that is currently occupied by the Poole’s who have lived there for over thirty years. The property was valued at $84,000 by a recent appraisal using a sales comparison approach. The negotiated purchase price is within the range of what was discussed with City Council given the length of time these owner/occupants have lived in the home and represents a fair price for the property.
Contract K-1516-99 requires that the earnest money ($1,800 or 2% of the purchase price of $92,400) be deposited with the closing company upon execution of the contract with closing to occur no later than March 31, 2016, but provides for a reasonable extension if the occupants need additional time to relocate. The contract requires the City to pay all closing costs associated with this transaction. Those closing costs are estimated to be $1,903.
Revenue bonds were sold in December of 2015 to provide funding for the first phase of Norman Forward projects including this land purchase.
RECOMMENDATION: Staff recommends that 1) City Council approve Contract K-1516-98 with Tom and Carla Poole in the amount of $92,400 for the purchase of property for future municipal purposes and 2) City Council appropriate $94,303 from the Norman Forward Sales Tax Capital Fund Balance (account number 051-0000-253.20-00) to Norman Forward Sales Tax Capital Project - Land (account number 051-9507-455.60-01 - Central Branch Library; Project BP0016) to fund both the purchase and all anticipated closing costs associated with this transaction.