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Posted: June 09, 2023
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF061423-08

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Purchase Agreement with 605 Storage L.L.C. for Property Located at 3300 Cambell Street

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
06/14/2023
City Council Hearing Date:
06/20/2023
Petitioner:
605 Storage, LLC
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
605 Storage L.L.C. (Dr. Jeff Bendt) owns two lots on the north and south side of the Fairmont Street ROW just east of Cambell Street. The City’s future plans show Fairmont Street extending to the east of these properties. There was previously some discussion about vacating the ROW and combining the two lots. Dr. Bendt approached the City to gauge its interest in purchasing the lot on the south side of the ROW and offered it for $750,000. In early February the City Council expressed interest in purchasing the lot and directed me to obtain an appraisal of the property. The appraisal has been completed and determined the value of the property to be $785,000. In addition to the cost of the land, Dr. Bendt is asking tobe paid for the amount he prepaid Holiday for the estimated cost of constructing half of Fairmont Street adjacent to the two lots. He prepaid this amount to Holiday by discounting the purchase price of the north lot by an amount equivalent to half the cost of the road. In exchange, Holiday has agreed to pay 100% of the cost of the roadway improvements, even if the actual costs for construction exceed the estimate. In addition, there are several tenants renting from 605 Storage. Since the City has no immediate plans for the property, staff would recommend we continue the leases for now. The revenue from the property is not significant, but if we continue the leases it would generate a few thousand dollars of revenue per month.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Funding Source & Fiscal Impact Notes:
City’s Capital Improvement Fund. Specifically, the line item for right of way acquisition under Public Works infrastructure funding.

Recommendations:

Origination Recommendation Action:
Approve
Published in 2023 - LF Agenda Items

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