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EUGENE Public Works Parks and Open Space Division City of Eugene 1820 Roosevelt Boulevard MEMORANDUM Eugene, Oregon 97402 (541) 682 -4800 (541) 682 -4882 FAX www.ci.eugene.or.us/parks Date: October 21, 2004 To: Mayor Torrey and City Council From: Johnny Medlin, 682 -4930 Parks and Open Space Planning Manager Subject: COUNCIL ASSIGNMENT: STATUS REPORT ON CURRENT NEGOTIATIONS REGARDING 38 -ACRE LAND ACQUISITION IN SOUTH HILLS City of Eugene Public Works staff have negotiated to acquire portions of a 90-plus-acre parcel on Dillard Road since summer 2000. Early negotiations, targeted to meet the needs of the Ridgeline Trail and Stormwater Corridor acquisition programs, resulted in a 54 -acre acquisition in October 2001. Since October 2001, we have placed a high priority on acquiring an additional 8.5 -10 -acre portion which contained important stormwater corridors. This acquisition was estimated to cost $150,000. In 2004 this acquisition strategy shifted to a possible purchase of the entire 39 acres remaining from the original 90- plus-acre parcel. This change in strategy was based on a willing seller indicating a price of $300,000 might be acceptable. The proposed funding for this acquisition was through a combination of Stormwater (10 -plus acres @ $150,000), Ridgeline Trail (10 -plus acres @ $150,000) and property owner donation of the remaining 19 -plus acres. Initially acquisition of this parcel had never been considered a high priority for the Ridgeline Trail Program since we already had a connecting corridor for the trail and this geographic area has a relatively high amount of city -owned natural area in comparison to other areas of the city. However, due to the high natural resource value of the property, it was deemed that up to $150,000 from the Ridgeline Trail acquisition program could be reprioritized if purchase of 10 acres from this source would leverage the donation of the additional 19 -plus acres. Our offer of $300,000 for 39 acres was accepted by the property owner in an e-mail on March 22, 2004 but later retracted on April 5, 2004. Our understanding was that this retraction was based on the property owner needing to honor a previous purchase agreement with another party. The property was subsequently sold in May 2004 for $325,000 without further involvement of the City. Staff contacted the new owner in June 2004 to determine his willingness to continue negotiations with the city regarding this property. The response was a reluctant willingness to sell for $600,000 if the sale could close by October 1, 2004. Staff notified the property owner it would likely be impossible to meet this deadline but that a good faith effort to do so would be made in the hope the closing date might be extended. Since August, a number of efforts have been undertaken. First, City staff initiated the necessary engineering design and appraisal work. Simultaneously, we applied for a new matching grant opportunity from State Parks for $300,000. The City match consists of the $300,000 previously identified for this acquisition. In September, State Parks approved the funding request and drafted the State /City Grant Agreement.