REPORT TO COUNCIL
SUBJECT
Title
Reject Two Offers for the City-Owned Property Located at 1484 Kifer Road (Unilever) and Approve Budget Modification No. 12
Report
BACKGROUND
On February 28, 2017, by resolution, Council declared for surplus the City-owned property at 1484 Kifer Road, commonly known as the Unilever Margarine Plant (RTC No. 17-0191). The Unilever site was gifted to the City without consideration in 1979 and has not been used for City services and there are no future plans for use in this capacity.
For several fiscal years, the City's 20-year Financial Plan included projected revenues from the sale of the Unilever property at various values based on estimates or appraisals of the property. The FY 2017/18 Budget includes the most recent appraisal value of $17.6 million. It is important to note that as part of the funding discussions for the Civic Center Modernization Project, the Unilever property was included as a potential funding source for Civic Center improvements.
The Unilever site is also now part of the Lawrence Station Area Plan (LSAP). The LSAP allows industrial and research and development uses, up to 50% floor area ratio (FAR). In addition, the City Council has directed staff to evaluate additional opportunities for allowing residential development in the LSAP area; the Unilever site could be considered for residential or flexible mixed uses.
As a result of the surplus process, the City received two offers (ROEM Development and Fore Properties), and over the last few month's staff has been negotiating with the two developers. The City Council held two closed sessions, on July 25, 2017 and August 22, 2017, to review the offers and provide direction to staff.
EXISTING POLICY
Council Policy 1.2.7 Acquisition, Leasing and Disposition of City-Owned Real Property Section 3: Disposing of surplus property shall be done in a manner to maximize the benefit to the community and should be done whenever real estate market conditions are favorabl...
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