REQUEST FOR COUNCIL ACTION

ORDINANCE: O-2002-6

SUBJECT: Ordinance authorizing a land exchange between the City of Lakewood and the State of Colorado for the development of a neighborhood park in the 1900 block of Teller Street (Aviation Club Property) and authorizing the sale of any unusable remainder.

ADDRESS: 1725 Reed Street - City owned parcel
1900 Reed Street - State owned parcel (Teller Street Frontage only)

RECOMMENDATION: Approve the ordinance.

FUNDING SOURCE: Community Development Block Grant (CDBG)

SUMMARY AND BACKGROUND OF SUBJECT MATTER: In June of 1998, the State of Colorado purchased the 6.9 acre property known as the Aviation Club in order to provide for additional parking if the existing Department of Revenue facility on the east side of Reed Street is ever expanded. Since that time, Lakewood has been working with the State to acquire a portion of the property to provide a neighborhood park in an area that is in need of additional park acreage.

The State is unwilling to part with the entire parcel at this time; however, they have agreed to exchange the area fronting Teller Street (Parcel A on attached Vicinity Map) for part of the City owned parcel located at 1725 Reed Street (Parcel B). The parcel to be conveyed by the State to Lakewood is 67,940 square feet. The parcel to be conveyed by Lakewood to the State is 23,760 square feet. Lakewood will pay the State $4.25 per square foot for the difference in the two areas or $187,765.00, which is consistent with a recent appraisal of the property. Funding for this acquisition has been reserved from Community Development Block Grant funds for a few years. The State is willing to grant a Right of First Refusal to the City for the remainder of the Aviation Club property (Parcel C) which will allow Lakewood to purchase the remainder should the State declare it surplus.

The Capital Development Committee heard the request to exchange property on January 8, 2002. The item was approved. Upon approval of the ordinance by City Council, the transaction can be completed in the first quarter of 2002.

The State has determined that they do not need the remaining 13,120 square feet of Lakewood's property (Parcel D), which will be a landlocked parcel. Once the land exchange has been completed with the State, Parcel D will be declared surplus and will be offered to the three adjoining property owners to submit a sealed bid to purchase it from the City. The remainder parcel will be conveyed to the highest bidder once all of the City's requirements have been met. These requirements will include processing a lot line adjustment to combine Parcel D with their current property into one lot.

DATE OF FIRST READING: January 28, 2002

DATE OF SECOND READING: February 11, 2002

ORIGINATED BY: Ross Williams, Facilities Planner

STAFF PERSON RESPONSIBLE: Mike Connor, Property Manager, 303-987-7659

DOCUMENTS ATTACHED: Ordinance O-2002-6 and Vicinity Map

SUBMITTED BY:

Mike Connor, Property Manager
Jacque Wedding-Scott, Director of Finance

REVIEWED BY:

Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager