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HomeMy WebLinkAbout01-16-2001 Meeting REAL ESTATE MEETING COMMITTEE ROOM - January 16,2001 I PRESENT: Hons. Mays, Mayor Pro Tern; Bridges, Kuhlke, H. Brigham, Colclough, Williams, Cheek, 1. Brigham, Beard and Shepard, Commissioners; Walter Hornsby, Interim Administrator; Jim Wall, Attorney; Teresa Smith, Public Works Director; Drew Goins, Asst. Director ofP.W. - Engineering Division; Jim Williamson, Right of Way Acquisition Office; Nancy Morawski, Deputy Clerk of Commission. I Mr. Wall: We need to talk about the Greene Street Extension Project. A company affiliated with Gold Mech wants to build a building on their property in this area which we anticipate will be needed as far as the Greene Street extension is concerned. Rather than doing the land swap with them that we had previously talked about, I don't think we have any alternative but to let them build the building and then five or six years down the road, we may wind up having to condemn it. I just wanted to let you know that this is where we stand. The second real estate item involves the Richmond Bonded Warehouse. They have made a proposal whereby they have discounted the numbers by 10% rather than 12% which results in a value of$391,793.00. I had the numbers discounted for discussion purposes without any commitment on the Commission's part at a 6% discount rate. They had originally proposed a 12% discount rate. Ifwe use a 7% discount rate and including a stream of the lease payments, we come up with $545,000. Several years ago there was discussion about Federal Court building a new building across from the Federal Courthouse. This property was appraised back in 1997 or 1998 for $399,000. Judge Bowen asked to meet with the Mayor, Mr. Shepard and myself about the possibility of having some private investors construct that facility. It would facilitate things if the government acquired the property. They do not have condemnation authority for a private investor to build it. It would be a lease agreement between the Federal Government and the private investor. You had asked how we would deal with the Richmond Bonded if you decided to sell. This is a method of doing that by virtue of a land swap. You could have Richmond Bonded's owners acquire the site of the new Federal Building and then work out an exchange where they convey that property to us and we convey our reversionary interest in the lease agreement to the Richmond Bonded property. It might have to be some cash changing hands in the process but you're dealing with something that has some comparable value. We continue to get letters from Richmond Bonded regarding the water pump and the need to improve the railroad. This would provide some economic revitalization in that block with new Federal Building by moving the U. S. Attorney's office over there and possibly some of the other Federal agencies. After further discussion, Mr. Wall: Ifwe terminate the lease with Richmond Bonded Warehouse and they pay us for the reversionary interest, that provides a source of funds. You have them paying taxes on a permanent building and get a Federal Building in an area that is revitalizing. If you want me to pursue this, I will do so but I need some direction. I It was the consensus of the Commission that Mr. Wall bring back a proposal on this matter. Nancy W. Morawski Deputy Clerk of Commission I NWM I I