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EUGENE CITY COUNCIL <br /> AGENDA ITEM SUMMARY <br /> Work Session: Acquisition Update on East Fork Amazon Headwaters -Dillard Road <br /> Meeting Date: June 8, 2005 Agenda Item Number: A <br /> Department: Public Works Staff Contact: Johnny Medlin <br /> www. ci. eugene. or. us Contact Telephone Number: 682-4930 <br /> ISSUE STATEMENT <br /> This is a work session to update the council on the status of negotiations for the purchase of the South <br /> Hills property abutting Dillard Road. <br /> BACKGROUND <br /> :City of Eugene Public Works staff has negotiated to acquire portions of a 90-plus-acre parcel on Dillard <br /> Road since summer 2000. Early negotiations, targeted to meet the needs of the Ridgeline Trail and <br /> Stream Corridor acquisition programs, resulted in a 54-acre acquisition in October 2001. <br /> Since October 2001, staff has placed a high priority on acquiring an additional 8.5-10-acre portion <br /> which contained important stream corridors estimated to cost $150,000. This area is shown in <br /> Attachment C, outlined in red. In 2004, this acquisition strategy shifted to a possible purchase of the <br /> entire 39 remaining acres based on the property owner indicating that a price of $300,000 might be <br /> acceptable. This area is shown in the Attachment B. The area in yellow is subject property and areas in <br /> green are existing parklands. Initially, acquisition of the total parcel was not considered a high priority <br /> for the Ridgeline Trail Program because the City had already acquired a connecting corridor for the trail <br /> in this geographic area and lacks such in others. However, it was decided that is was worth pursuing if <br /> the acquisition of 20 acres for the stormwater corridor and Ridgeline Trail programs would leverage the <br /> donation of the additional 19-plus acres. <br /> The City's offer of $300,000 for 39 acres was accepted by the property owner inane-mail on March 22, <br /> 2004, but later retracted on Apri15, 2004. Staff s understanding was that this retraction was based on <br /> the property owner needing to honor a previous purchase agreement with another party. The property <br /> was subsequently sold in May 2004 for $325,000 without further involvement of the City. <br /> Staff contacted the new owner in June 2004 to determine his willingness to continue negotiations with <br /> the City regarding this property. The response was a reluctant willingness to sell for $600,000 if the sale <br /> could close by October 1, 2004. Staff informed the property owner that it would likely be impossible to <br /> meet this deadline but that a good faith effort would be made in the hope the closing date might be <br /> extended. City staff initiated the necessary appraisal work and applied for and received a State Parks <br /> matching grant for $300,000. The appraiser worked with a local engineering firm to analyze the <br /> development potential of the property. This analysis was necessary to determine if the development <br /> <br /> potential would support an appraisal closer to the $600,000 asking price instead of the recent purchase <br /> <br /> price of $325,000. <br /> L:\CMO\2005 Council Agendas\M050608\S050608A.doc <br /> <br />