Title
Ordinance No. 21-109 Amending Ordinance No. 20-92 (2021 Appropriation Ordinance) for a Supplemental Appropriation in the Amount of $2,305,000 to the Public Space and Development Fund to Acquire Approximately 8.48 acres of Property Located at 1819 West Cheyenne Road for the Purpose of a Public Park
Presenter:
Karen Palus, Parks, Recreation and Cultural Services Department Director
Matt Mayberry, Cultural Services Manager
Britt Haley, Parks Design and Development Manager
Body
Summary:
This is a request for a supplemental appropriation in the amount of $2,305,000 from the fund balance from park land dedication ordinance fees to provide for the purchase of a park site and to fund the real estate transaction costs. For City finance and budgeting purposes the fund is identified as the Public Space and Development Fund.
Background:
This is a proposal to use approximately $2.3 million in park land dedication ordinance fees to purchase a historically significant 8.48-acre neighborhood park site and its facilities in partnership with the Golden Lotus Foundation (GLF) which is a local nonprofit 501(c)(3) organization founded to promote and celebrate Asian heritage. This property is located at 1819 West Cheyenne Road on the southwest side of the City. At the suggestion of a member of City Council familiar with the property and the Parks Department’s interest in it, GLF contacted Parks to understand if Parks would prefer to partner with them to complete a purchase of the property. This proposal offers a partnership which would allow the City to own the park property and have GLF as a partner to operate the site while they conduct a fundraising and capital development campaign to convert the existing facilities into an Asian heritage center, botanical garden and tea house. Because the site is over 8 acres, other neighborhood park elements such as the grassy areas, walking trails, and other park facilities are envisioned to co-exist with and complement the Asian heritage vision for this property.
Previous Council Action:
N/A
Financial Implications:
The GLF’s contract offer is $2.3 million. This offer is supported by an appraisal dated November 2021. The Parks Department proposes to use $2.3 million of park land dedication ordinance (PLDO) fees to purchase, and consequently own, the property. More specifically, the department has identified the PLDO fund balance for fees collected prior to the early 2021 revision of the parkland dedication ordinance for this project. The fund balance is just over $2.5 million and it can support the cost of this acquisition as well as the standard real estate transaction costs associated with a property purchase such as closing costs, title insurance and recording fees. These PLDO fees were collected during the residential development process to allow the Parks Department to purchase neighborhood and community park sites when a residential development proposal does not have sufficient land to dedicate to the City for a park. Staff recommends funding the closing costs and other standard real estate transaction costs from the PLDO fund balance for a total supplemental appropriation of $2,305,000.
City Council Appointed Board/Commission/Committee Recommendation:
The Parks, Recreation and Cultural Services Advisory Board is scheduled to consider this proposal at its November 18, 2021 meeting.
Stakeholder Process:
Parks, Recreation and Cultural Services Advisory Board (Parks Board) meetings provide opportunities for public comment. This proposed acquisition is scheduled for the Parks Board’s November 18, 2021 meeting. Additionally, there was a neighborhood public meeting at the Ivywild School’s gym in late July of this year to inform the public of the decision to sell the property and the process for consideration of offers to the extent it was known at that time.
Alternatives:
Do not approve the supplemental appropriation request or propose an alternative source of funding for the purchase.
Recommended Action
Proposed Motion:
A motion to approve a supplemental appropriation to the Public Space and Development Fund in the amount of $2,305,000 to fund the purchase of a park site property located at 1819 West Cheyenne Road and the associated real estate transaction costs.
Summary of Ordinance Language
An Ordinance Amending Ordinance No. 20-92 (2021 Appropriation Ordinance) for a Supplemental Appropriation in the Amount of $2,305,000 to the Public Space and Development Fund to Acquire Approximately 8.48 acres of Property Located at 1819 West Cheyenne Road for the Purpose of a Public Park