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HomeMy WebLinkAboutAugust 5, 2003 CC MinutesMeddian City Council August 5, 2003 Page 4 of 56 R. Water Main Easement for Creekside Arbour Phase 3: S. Approve Purchase of Lot in Castlebrook Subdivision No. 1 for Black Cat Lift Station: T. Streetlight Agreement for Cedar Springs Subdivision No. 2: U. Change Order No. 1 for Well No. 24 Pumping Facilities - Irminger Construction: V. Approve Bills: De Weerd: Item No. 3, Consent Agenda. Bird: Madam President? De Weerd: Mr. Bird. Bird: I move we approve the Consent Agenda, with the exception of moving Items D, E, and F to 6-D, 6-E and 6-F on the regular agenda. Nary: Second. Bird: And for the Mayor to sign and the Clerk to attest on all proper papers. Nary: Second. De Weerd: Okay. There is a motion to approve the Consent Agenda, Mayor to sign and Clerk attest all appropriate papers. All those in favor say aye. Oh, I'm sorry. Mr. Berg. Roll-Call: McCandless, yea; Nary, yea; de Weerd, yea; Bird, yea. MOTION CARRIED: ALL AYES: Item 4: Department Reports: A. Public Works Department: 1. Discussion of Silverstone Corporate Center Well Site, Well No. 23 -Brad Watson: De Weerd: Okay. Item 4. Department reports. Public works. Brad. Watson: Thank you, Madam President, Council Members. I trust you have a copy of the memo that I wrote to you last week. There is really no new information. As I stated in that memo, it was my understanding from the April 22nd pre-Council meeting that you Meridian City Council August 5, 2003 Page 5 of 56 had asked Mr. Anderson of Sundance company to come back with more information or a different proposal. There is also a copy of a letter that Mr. Anderson wrote to Mayor Corrie hopefully in that packet and, then, for your convenience I just inserted an excerpt from that April 22nd pre-Council meeting into the packet. Ryan Anderson is here tonight if you have any questions for him or if you would like to,hear from him, but I have really nothing new since April 22nd. De Weerd: Okay. Thank you, Brad. Any question for Brad? Ryan, would you like to come forward? Do you have questions for Mr. Anderson? Bird: I don't. What are we going to have to do to solve it? Brad, didn't we -- isn't there an agreement or something between you guys and Roger and Ryan? Wasn't there an agreement worked out or something? This is just going on too long. Watson: Council Member Bird, I think that's the reason it's before you is there isn't an agreement. There was the two options that I outlined in April of either putting together a latecomers agreement to pay back onto that -- for that well site, if you directed me to do that. The second option was a cash payment to Sundance Company for that well lot. At the time I think the discussion revolved around what was perceived as fair market value or the value -- I don't know what the term was at the time. We have drafted a latecomer agreement. We haven't sent it on to Sundance Company, because this came up at about the same time. We can certainly proceed with that and send it to them for their approval or if you wish on their -- their request, I think that's what their preference would be. Bird: Madam President? De Weerd: Mr. Bird. Bird: My preference would be if it is a fair market value, to pay the thing off and be out of it. But, Brad, did you -- did you think it was fair market value or were you able to check or anything like that? I know Ryan come up and explained to us what was fair market value and there were some questions about it, so -- Watson: Right. Councilman Bird, all I can offer is that last fall, I think it was, I solicited a proposal from an appraiser to look into that. I guess we didn't follow through on that at the time, because I guess in my mind at that time we were still going to follow through on a latecomer agreement and it did slip between the cracks for a month or two. De Weerd: I believe, Mr. Bird, that it was -- we were thinking it would be a pre- development cost, instead of -- instead of after. Bird: Yeah. De Weerd: And I guess that's the crux of the issue in my belief, is that we've paid pre- development costs, we don't understand why a well site would be charged after the Meridian City Council August 5, 2003 Page 6 of 56 roads and infrastructure costs to the value of that piece of property when the well adds to the value. So, I think that was the issue that was raised. Bird: Madam President? De Weerd: Mr. Bird. Bird: The only problem with latecomers it costs you money, too, in administrative fees. There is a lot of time spent by bookkeeping on latecomers and stuff like that, so I wish we could work something out here and get it paid off and forgot about, but -- De Weerd: I guess that's why -- Bird: We need to do something. We need to do something. Nary: Madam President? De Weerd: Mr. Nary. Nary: Yeah. I have looked here at this letter provided by the Sundance Company and, you know, I mean they still haven't answered the main crux of the issue that we had in April. In looking at the minutes from the April meeting -- and we don't have that agreement back in front of us, but my recollection was that what was stated here in the minutes is it was the pre-development cost, was a decision by the city to not seek the latecomers agreement, but, rather, to purchase the piece, although that wasn't our normal practice, but to purchase the piece, but at the pre-development cost and I asked Mr. Anderson back in April what was that number, because we didn't necessarily agree that five dollars a square foot was right amount, that was the developed cost of the piece and at that time, in looking at the minutes, Mr. Anderson had made -- had some discussion about where it was located and whether it was more valuable than other pieces and back, then, I said I don't care about that, that wasn't the issue, the issue was pre-development cost. This 98,000 dollar figure doesn't tell me anything. It just says we changed our mind, now it's 98,000. Well, again, if they don't want to tell us -- and that's what that agreement said in my recollection that we argued about in April, was that's what it had to be, we are not going to pay it. So, unless they get more -- you know, more detailed and more specific as to what we are paying for, we are not going to pay anything for it. So, do you have more information than this letter? This isn't anything different than you told us before. It's just a different number. Anderson: Council Members, my name is Ryan Anderson, 1453 Shellbrook in Meridian, Idaho. I am before you again -- last time in April I was asked to go through and do a discounted price on a cash basis and that's what I presented in the letter. I really haven't had any -- I mean any further contact, nobody's responded to that letter. I haven't heard anything different on that until as of last Friday I was told that I was back on the agenda. As far as the cost of the property we discussed, I have had pre- development sales up there, both to Ada County Highway District and to Sutherland Meridian City Council August 5, 2003 Page 7 of 56 Farms for a development piece that they were doing and that ranged from three and a half dollars to about eleven dollars a square foot and that is why about a year and a half, almost two years ago, we went ahead and spent time with your guys' staff and came up with that five dollar number as a reasonable and fair number to start with, so that's where that number came from. For this letter I went ahead and pulled about 10,000 dollars off that as an incentive to do a cash price, instead of going through and doing a latecomers fee, which is how I came about that number. De Weerd: So, Mr. Anderson, with that discount, what would the price be per square foot? Anderson: I, actually, didn't go through and calculate it that way. It's probably four and a quarter, four and a half dollars a square foot, probably. But just to reiterate, I did do appraisals, the whole works, with Ada County Highway District and those numbers ranged from seven and a half dollars to well over ten dollars a square foot for the property that's very close to where you guys are at. De Weerd: For pre-development? Anderson: And this is all pre-developed price. They won't pay for anything additional to that. I have actually -- I have got Idaho Power paid an easement that was almost this value for the same -- I mean for frontage on Overland and you guys are within a couple hundred feet of that. De Weerd: I think the argument, though, at that time and it remains that, is you wouldn't have value without the well site there, because you would not have the water. Anderson: But I don't think I should be penalized and have to subsidize the rest of the development that uses that water by paying for the entire property myself. That's why we are trying to come up with an agreeable price on it. Bird: Madam President? De Weerd: Mr. Bird. Bird: Ryan, can you give us a bottom line -- I mean you have went from five to four and a quarter now. Give us a bottom line of what cash is and, you know, we will give you the cash, which you get your money upfront to work with -- Anderson: Sure. Bird: -- and if we go latecomers, then, you get it as it comes through. Anderson: Right. Meridian City Council August 5, 2003 Page 8 of 56 Bird: And, you know, that could drag out ten years, as we all know. And get back to Brad or -- to Brad with a final figure and let's see what we can work out, if we can't work something out and get it taken care of. You know, help us out all you can. Anderson: Can I get some sort of indication on what sort of time frames we are looking at? Bird: For getting back to us? Anderson: No. In -- Bird: If we pay you? Anderson: Providing I respond rather quickly. Bird: Oh, I think if we agreed we could get you paid immediately. If it was agreeable, yeah, we could get you paid immediately. De Weerd: Do we want this back on the agenda in a week or two weeks? Bird: I wouldn't mind it, Madam President. I think we should. Let's get it taken care of one way or the other. De Weerd: So, what is your recommendation? Bird: Well, I think we ought to have it back for the -- can you give us a final figure next -- by the end of this week? Anderson: I certainly can. Bird: Okay. Get it to Brad. Let's do it the 12th. De Weerd: Okay. We will put this back on the agenda, then, Mr. Clerk, on August 12th and you will get that back to Brad, so we can get the information in our packets. Anderson: I most certainly will. De Weerd: Okay. Nary: Madam President? De Weerd: Mr. Nary. Nary: I guess I'm not totally clear what Council Member Bird is asking for that's going to be different than what we already have. Meridian City Council August 5, 2003 Page 9 of 56 Bird: What the bottom line of what they will take cash for. Nary: I thought that 98,000 was it? Bird: No. He said he already lowered it to --that was five dollars or something. He had already lowered it to four and a quarter. Nary: Right. But Ithought -- I guess I -- is it going to be different than 98,000? Anderson: I'll take a look at it again and that's what I'm being asked to do. Nary: I'm sorry? Anderson: That's what I'm being asked to do, so I will. De Weerd: So, Mr. Anderson, will take a look at it and get his proposal to our staff. Nary: And could we have, then, next week, because I don't have it in this stuff, what the agreement was to begin with, because we had it in the last time. So, if we can have what the agreement -- we were looking at an agreement the last time and that was what we were basing on what we thought we should have to pay is a relation to what the agreement was and it's referenced in the minutes and I recall that we were looking at a document of some sort. Watson: Council Member Nary, I will completely duplicate the packet from April 22nd, whatever was in there -- Nary: Okay. That would be great. Watson: -- make sure that it will be there for next week and if I could just ask one clarification. Is there any other information I should be expecting or looking for from Ryan for next week's packet? De Weerd: Mr. Bird. Is there additional information that you desire from staff? Bird: No. I just want a bottom line of what they have to have for that property and what we are willing to pay. De Weerd: Okay. Okay. Thank you. Anderson: Thank you. Item 5: Request for Reconsideration and Re-opening Public Hearings for Callister Development AZ 03-002 and CPA 03-001: