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R—EPORT TO: Honorable Mayor and City Council
FROM: James H. Patrick, City Manager
SUBJECT: Update on Negotiations for the potential Exchange of Property
MEETING ATE: November 28, 2005
BACKGROUND: The City and valley Bank have discussed the exchange of the City
parking lot located at the northwest corner of Main Street and Strect for the like amount o
property currently owned by Valley Bank. This exchange would allow valley Bank to build a
new facility on the City Parkin; lot and the exchange would allow the City to proceed with plans
o build a new parking structure along the length of 1 t Ave, wS roan P to 2 a Streets.
Valley is interested in proceeding with negotiations to exchange the property so that they can
finalize their building plans. valley Bank and I have met with the parking Commission to
discuss this proposal. The Parking Commission's comments were:
1. Like value property. However, there are environmental challenges on the City owned
parking lot. "here is an old foundation that will need to be excavated', and the lot clues
not allow full development due to the condition of the existing building foundation to the
north. Lastly, the desire of the Parking Commission and City Council seems to be to find
parcel large enough to build a parking structure. This exchange accommodates that
plan.
2. valley retains ownership of three parcels instead of traser.n all parkin; lots to the
City, whys valley believes that valley needs to retain three lots for their parking to be in
compliance with zoning. The three lots being; retained were previously discussed and
agreed to with Council as the three most expensive lots (for tax purposes).
3, will this keep valley Bank downtown`s valley has four options. one is to rebuild their
current facility. This is difficult at best since they need to continue to operate while the
new facility is being built. They are looking at another location downtown but not on
Main Street. They are looking at moving north or south.. The best option for them is to
move to Main Street as proposed. This also helps with the revitalization of the downtown
and further implementation of the Downtown Plan.
The Parking Commission did pass a Resolution to recommend to the City Council that
negotiations on the proposed exchange of property continue.
RECOMMENDATION: Council direct staff to continue negotiations with Valley Bark on the
exchange of property.
FISCAL EFFECT: None at this time.
ALTERNATIVES: As suggested by the City Council.
Respectfully submitted,
.T .ffis H. Patrick, City Manager