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CITY OF EUGENE <br /> INTER-DEPARTMENTAL MEMORANDUM <br /> CITY ATTORNEY - CIVIL DEPARTMENT <br /> To: Johnny Medlin Date: October 21, 1993 <br /> Subject Raptor Center Proposal/Land Sale <br /> The City owns the residence, storage building and utility sheds and the real <br /> property Located at 32275 Fox Hollow Road, within the Ridgeline Park. The City issued <br /> a Request for Proposal ( "RFP ") to nonprofit organizations that might be interested in <br /> developing the property consistent with the public benefit objectives designated in <br /> Eugene Parks and Recreation Plan which contemplated its use as a nature or wildlife <br /> education and interpretive center. The Cascades Raptor Care Center (the CRCC) <br /> submitted a proposal to purchase the property and develop a nature and interpretive <br /> center and a wildlife rehabilitation facility on the site. City staff have concluded that the <br /> CRCC proposal is consistent with council policy direction. The estimated fair market <br /> value of the real property and the improvements is $100,000. CRCC proposes the <br /> following purchase terms: monthly payments of $500 for three years with a balloon <br /> payment of the balance of the purchase price at the end of the three years. There is no <br /> downpayment or interest provision in the CRCC proposal. <br /> You asked, first, if the City can sell the Fox Hollow property on CRCC'S <br /> proposed terms. <br /> There are no legal impediments to the City deciding to enter into a sale <br /> transaction with the CRCC with regard to the Fox Hollow property. The City can either <br /> 'structure the arrangement as a land sale contract or as a lease with a purchase option. <br /> By using a land sale contract and transferring title to the property, rather than a lease, <br /> the City would minimize its exposure to potential tort liability, in addition to any liability <br /> under the Americans with Disabilities Act. The specific terms of the sale transaction <br /> with regard to a particular interest rate and downpayment or lack thereof can be <br /> negotiated with CRCC at a later date depending on how the City chooses to handle <br /> these issues. Selling the property to CRCC without interest or a downpayment on the <br /> purchase price raises policy and economic issues, rather than legal issues per se. The <br /> City will also need to ascertain whether the property was originally purchased with park <br /> bond fundinJf so, the appropriate disposition of the proceeds of this sale transaction is <br /> to replace those funds. <br /> You also asked what is the proper procedure to follow to sell the property. <br /> Because this matter had already been discussed by councilors, the easiest way to proceed <br />