WEBVTT 1 00:00:00.000 --> 00:00:00.810 order. 2 00:00:02.310 --> 00:00:10.620 Chelsea King: At 1002 and to a special meeting and I will hand it over to. 3 00:00:11.880 --> 00:00:16.859 Chelsea King: Director or call it out yeah, we need to call roll yes please go ahead and do that this Douglas. 4 00:00:17.520 --> 00:00:19.230 Kelly Douglas: and checking. 5 00:00:19.710 --> 00:00:21.960 Kelly Douglas: Present christy Thompson. 6 00:00:22.740 --> 00:00:24.750 Kelly Douglas: Here let's Taylor. 7 00:00:25.260 --> 00:00:26.640 Kelly Douglas: Here, to see. 8 00:00:27.900 --> 00:00:28.290 Kirsten Wyatt (she/her): here. 9 00:00:28.800 --> 00:00:29.430 Kelly Douglas: Kelly sleep. 10 00:00:29.940 --> 00:00:31.380 Kelly Douglas: Here, thank you. 11 00:00:32.700 --> 00:00:40.800 Chelsea King: Okay, great and i'll just hand it over directly to you, Mr Mike if we're here to discuss the up and lander property and. 12 00:00:42.300 --> 00:00:44.190 Chelsea King: If you're prepared all handed to. 13 00:00:45.300 --> 00:00:57.810 Pat McGough: Thank you, Director King board members good morning that usually is down a sentence we usually string together, either on but i'm here to provide an update on the. 14 00:00:58.980 --> 00:01:11.910 Pat McGough: Potential sale of the property it up and lander and i'd like to begin by given a historical background and kind of how we are where we are. 15 00:01:13.980 --> 00:01:27.330 Pat McGough: On August 16 of 2021 that district entered into a non binding letter of intent to summarize principal terms of the oven offer by the city of Westland to purchase. 16 00:01:27.960 --> 00:01:39.120 Pat McGough: For the purchase and sale of district own property at 1270 rosemount road Westland Oregon commonly known as urban land and lander field. 17 00:01:40.110 --> 00:01:54.030 Pat McGough: The letter of intent was non binding why the letter of intent was done by adding the framework identified all of the terms and conditions that would later be formalized in a purchase and sales agreement. 18 00:01:55.860 --> 00:02:06.480 Pat McGough: understanding that it would take time for our for the legal teams at the city and the district to write review and receive approval of the PSA from. 19 00:02:06.810 --> 00:02:27.120 Pat McGough: Both city council and the Board of Directors the district in the city move forward under the line of the letter of intent, as time was of the essence, the final PSA was adopted by board resolution 2021 dash eight on January 10 2022. 20 00:02:28.470 --> 00:02:35.670 Pat McGough: Under the terms of the letter of intent, the final purchase price would be established by a new appraisal. 21 00:02:36.810 --> 00:02:38.190 Pat McGough: The selection of the firm to. 22 00:02:38.190 --> 00:02:41.160 Pat McGough: perform this work was again identified in the. 23 00:02:41.220 --> 00:02:52.890 Pat McGough: letter of intent, the city and the district could agree on a single appraiser or each could select their own and the purchase price would be averaged between the two. 24 00:02:53.820 --> 00:03:08.400 Pat McGough: Originally the district proposed using rp Herman and associates as the district did use this firm for prior appraisals at up and way under on February 13 2013. 25 00:03:08.910 --> 00:03:22.350 Pat McGough: And again on April 15 2021 the value of the property from the April 2021 appraisal was $6,500,000. 26 00:03:23.100 --> 00:03:30.690 Pat McGough: This value has been used by the city to inform the community regarding the potential purpose of the property purchase of the property. 27 00:03:31.080 --> 00:03:44.580 Pat McGough: And announcements website postings and listening sessions, the city rejected rp Herman and proposed us and using Roman algae valuation services llc. 28 00:03:45.450 --> 00:04:00.090 Pat McGough: The district agreed to this selection, the proposal by Rome analogy value of services valuation services was executed by city staff on December 7 2021. 29 00:04:01.500 --> 00:04:13.650 Pat McGough: The Li letter of intent and purchase and sales agreement both state that the purchase price Shelby based on an appraisal of the fair market value of the property. 30 00:04:14.880 --> 00:04:22.860 Pat McGough: This appraisal methodology was previously used in Atlanta exchange between the city and the district in 2011. 31 00:04:24.000 --> 00:04:33.780 Pat McGough: The land exchange involved city own property at sunset park directly adjacent to the sunset primary school and district own. 32 00:04:34.650 --> 00:04:42.120 Pat McGough: leverage That was the name of it property on Parker road directly adjacent to tanner creek park. 33 00:04:42.900 --> 00:05:05.100 Pat McGough: The value of each property was established by the appraisal at approximately $301,000 per acre the fair market value at the time of this transaction the size of the land at sunset park multiple tax lots collectively made up the creative the total. 34 00:05:06.300 --> 00:05:15.180 Pat McGough: was approximately 1.6 acres with an agreed upon purchase price of 480 $3,000. 35 00:05:16.200 --> 00:05:27.510 Pat McGough: The size of the leverage property was approximately 6.67 acres with an agreed upon purchase price of $2,007,000. 36 00:05:28.230 --> 00:05:38.820 Pat McGough: The sale of the park property was placed on the ballot on may 18 2010 and approved by the voters in the city of West when. 37 00:05:39.510 --> 00:06:01.050 Pat McGough: The agreement created was created and signed by the city and the district on February 15 2011 and formally executed later the same year, this transaction served as the fundamental understanding of the methodology expected in a fair market value appraisal. 38 00:06:02.220 --> 00:06:19.020 Pat McGough: The this sale of sunset park acreage to the district demonstrates the parkland can be appraised at fair market value with a change in use by the approval of the voters, it does not have to stay apart in perpetuity. 39 00:06:20.700 --> 00:06:34.710 Pat McGough: Another term identified in the letter of intent and purchases sales agreement stated that the city would be required to cause the property to be designated as city owned park or open space. 40 00:06:35.160 --> 00:06:47.850 Pat McGough: Under the city charter chapter 11 designation that designation would have significant influence on the appraisal performed by Roman ology valuation services. 41 00:06:48.990 --> 00:06:59.730 Pat McGough: The letter of intent clearly states states clearly that the purchase price, and this is a quote the purchase price or the purchase and sale of the property. 42 00:07:00.060 --> 00:07:18.090 Pat McGough: shall be based upon an appraisal of the fair market value of the property which shall be prepared during the month of December 2021 and in all cases completed prior to December 31 2021. 43 00:07:19.200 --> 00:07:30.780 Pat McGough: district and city staff use fair market value as the appraisal appraisal methodology in all conversations leading up to and during the appraisal process. 44 00:07:31.980 --> 00:07:45.120 Pat McGough: When the appraisal was delivered by Roman it valuation services to the district on January 26 2022 the appraisal use the different methodology, however. 45 00:07:45.870 --> 00:07:56.100 Pat McGough: The methodology used by Roman algae valuation services assumed the designation as quote city own park or open space and quote. 46 00:07:56.640 --> 00:08:03.990 Pat McGough: And not fair market value which significantly reduce the appraisers assessment of the value of the property. 47 00:08:04.950 --> 00:08:16.470 Pat McGough: While the purchase and sales agreement states that fair market value consider permitted uses those uses currently allowed under existing city code. 48 00:08:17.280 --> 00:08:25.950 Pat McGough: In the appraisal Roman logic valuation services chose to use a hypothetical condition as their methodology. 49 00:08:26.700 --> 00:08:41.910 Pat McGough: The district is rejected this of appraisal, based on the use of this method methodology and has made proposals to city staff to find it acceptable alternative to establish the fair market value of the property. 50 00:08:42.960 --> 00:08:56.250 Pat McGough: The district has offered multiple options to the city to reach an agreement on solution, including a consideration of an expedited second appraisal that uses fair market value permitted us. 51 00:08:57.330 --> 00:09:17.040 Pat McGough: And a puzzle, to use the first appraisal by rp Herman and associates in April, the city has had to executive sessions, since becoming aware of the of the appraisal, but as provided no direction to find an agreed upon resolution at this time. 52 00:09:18.210 --> 00:09:37.170 Pat McGough: it's helpful to remember the disagreement can be modified it anytime by mutual consent of the parties at this time, nothing is locked in that, be it or too late or out of our control this process can be controlled and refined to reflect the will have the public. 53 00:09:38.250 --> 00:09:54.600 Pat McGough: At this time, the city is the district is waiting for the city to communicate its intentions, the district has just been informed that the City Council will discuss this issue in a public meeting on Monday February 7 2022. 54 00:09:55.770 --> 00:09:59.670 Pat McGough: That is the update at this time, am i'm. 55 00:10:01.410 --> 00:10:03.930 Pat McGough: available to answer any questions you may have. 56 00:10:06.360 --> 00:10:26.670 Chelsea King: Okay Thank you so much for putting that thorough report together for us and for clarity of purpose there's no decision in front of the board at this time, this was just an opportunity for us to meet and public here the information pose questions if we have them, but no need for a decision. 57 00:10:28.920 --> 00:10:30.720 Chelsea King: Okay, great. 58 00:10:32.130 --> 00:10:36.570 Chelsea King: Alright board, are there any questions. 59 00:10:40.020 --> 00:10:41.130 Chelsea King: director Wyatt. 60 00:10:43.260 --> 00:11:02.580 Kirsten Wyatt (she/her): Thank you, Mr mcgrath for that overview for directors Taylor sloop and I who joined the board in July, could you perhaps go back a little further in time and walk us through the process that was followed. 61 00:11:03.720 --> 00:11:12.270 Kirsten Wyatt (she/her): You know, starting with the decision to surplus this property and some of the outreach and engagement that the district conducted at that time. 62 00:11:14.610 --> 00:11:17.250 Pat McGough: I can i'm i'm not sure quite. 63 00:11:17.490 --> 00:11:36.990 Pat McGough: How far you want to go back, but the question came before or was presented to the long range planning permission or committee to review all district holdings and properties and determine their value and use their recommendation to the Board is they. 64 00:11:38.430 --> 00:11:49.650 Pat McGough: recommended that often lander would would serve no future district interest no purpose at all, and should be disposed of. 65 00:11:50.700 --> 00:12:06.480 Pat McGough: The Board received that recommendation and began to explore what options were open the first option was to approach the city and see if there was interest. 66 00:12:06.960 --> 00:12:20.130 Pat McGough: In that initial meeting, while the city was interested they stated they did not have the funding to make the purchase and the timeline that the district had. 67 00:12:21.180 --> 00:12:36.990 Pat McGough: placed on them, they couldn't meet that timeline so the district then began to look at marketing options and did in fact engage with a real estate broker that did market the property. 68 00:12:38.040 --> 00:12:43.530 Pat McGough: um once that became public knowledge on the Community. 69 00:12:44.550 --> 00:12:50.010 Pat McGough: rally to the city council and requested that they make another effort. 70 00:12:51.030 --> 00:12:57.780 Pat McGough: The city, then had an executive session on may 27 of. 71 00:12:59.010 --> 00:13:01.590 Pat McGough: May 26, I believe, of. 72 00:13:03.600 --> 00:13:16.950 Pat McGough: And on the 27th made a public made public, their executive session, and in that executive session on there were there was an expressed desire to purchase and lander. 73 00:13:17.430 --> 00:13:25.080 Pat McGough: As a result of the meeting, the board halted public sale on process and directed district personnel. 74 00:13:25.590 --> 00:13:45.360 Pat McGough: To add to again enter into discussions with the city to purchase the property and preserve it is city park open space um and so bad began the process to get us to the letter of intent and ultimately the purchase and sales agreement. 75 00:13:47.250 --> 00:13:50.430 Pat McGough: Did that kind of fill in the history enough. 76 00:13:51.450 --> 00:13:56.820 Kirsten Wyatt (she/her): It did Thank you and I think that clarification of the district's willingness to. 77 00:13:57.840 --> 00:14:08.730 Kirsten Wyatt (she/her): You know, listen to the Community and work on this issue is really helpful I did have one last question checking if that's okay in our offer to expedite a second appraisal. 78 00:14:10.170 --> 00:14:20.040 Kirsten Wyatt (she/her): Is that something that would that we would be willing to pay for you know if that's a concern from the city perspective and is that something that we've discussed as part of some of these solutions that have been offered. 79 00:14:22.440 --> 00:14:34.800 Pat McGough: The district did offer to fully pay for any additional scope of work, whether it was with Roman ology valuation services or another firm. 80 00:14:36.900 --> 00:14:40.680 Pat McGough: Frankly, we didn't want that to be a stumbling block and. 81 00:14:42.330 --> 00:14:45.780 Pat McGough: To be fair, I don't believe the city would. 82 00:14:47.310 --> 00:15:01.620 Pat McGough: not want to participate in any of that we just never got to that point, so I don't in an effort to be fair, I believe they're willing partners and would have if that was the solution that we chose. 83 00:15:03.120 --> 00:15:03.570 Kirsten Wyatt (she/her): Thank you. 84 00:15:05.700 --> 00:15:07.620 Chelsea King: Thanks director Wyatt and director Taylor. 85 00:15:09.720 --> 00:15:10.980 Louis Taylor: My question is. 86 00:15:12.420 --> 00:15:13.500 Louis Taylor: More from a stance of. 87 00:15:14.610 --> 00:15:32.130 Louis Taylor: Of there was a deadline of 1231 if I if I heard you correctly and that deadline was not met by the city council and i'm having a hard time understanding why the school district would be in a position where we would have to. 88 00:15:33.570 --> 00:15:43.410 Louis Taylor: Consider paying for another appraisal which we already assisted in paying for in good faith and met our deadlines i'm just not understanding. 89 00:15:43.830 --> 00:15:49.410 Louis Taylor: Why would we be hit with the budget expense paying for something that we've already paid for. 90 00:15:50.280 --> 00:15:57.300 Louis Taylor: And the deadline was not missed by the district, the deadline was missed by the city council, so I just want to have an understanding as to. 91 00:15:57.810 --> 00:16:05.190 Louis Taylor: Why, we would then spend that revenue on something that we've already paid for, because if I think about that, and if i'm a Community Member. 92 00:16:05.670 --> 00:16:18.660 Louis Taylor: If we were to double pay for something that may be of of importance to another area from the budget that would come up in a public meeting or a public forum as to being wasteful. 93 00:16:19.230 --> 00:16:25.350 Louis Taylor: So, can you help me understand why we would double pay for a an appraisal. 94 00:16:26.280 --> 00:16:39.570 Louis Taylor: When we have no liability or any fault in this particular situation and I understand the goodwill piece of it, and I am all about that, but I also want to understand just from a financial standpoint, why that makes sense. 95 00:16:41.130 --> 00:16:45.030 Pat McGough: I we made the offer to. 96 00:16:46.500 --> 00:16:55.920 Pat McGough: And all of this is hypothetical at this point because none of it was exercised, but the intent of the offer was to not. 97 00:16:58.020 --> 00:17:31.470 Pat McGough: Have the perception that we are debating a relatively minor expanse at the cost of a purchase of this size, so it may have been premature, but we felt time is of the essence, the deadlines are hard deadlines to get ballot proposals on file to clackamas county and on the ballot and. 98 00:17:32.730 --> 00:17:38.610 Pat McGough: We did not want there to be a perception of any delay intentional or otherwise. 99 00:17:44.130 --> 00:17:48.030 Chelsea King: Dr Taylor is that do you have further questions or is that are you done. 100 00:17:50.040 --> 00:17:56.850 Louis Taylor: No, I have no, no, no further questions, and I think that's mighty gracious of you pat so. 101 00:17:58.890 --> 00:18:01.230 Louis Taylor: That helps me understand, thank you. 102 00:18:04.680 --> 00:18:05.700 Chelsea King: Okay. 103 00:18:07.680 --> 00:18:11.730 Chelsea King: I share Thompson director sloop do you want to jump in there are you. 104 00:18:13.560 --> 00:18:15.480 Chelsea King: Okay, go ahead, vice chair. 105 00:18:17.550 --> 00:18:21.210 Christy Thompson: Thank you for some reason I can't find the hand raised and. 106 00:18:22.410 --> 00:18:25.950 Christy Thompson: Mr Vega can you explain you just mentioned the timeline. 107 00:18:27.090 --> 00:18:37.530 Christy Thompson: That you know, we know that the the city wants to get this on the intention was to have it on the ballot in May, so i'm just wondering if you can speak to that timeline a little bit what. 108 00:18:38.070 --> 00:18:46.350 Christy Thompson: What the time crunch is, and you know women's decision needs to be made by if you can just give a little bit more detail regarding that timeline. 109 00:18:47.580 --> 00:18:54.420 Pat McGough: Well, if it is the city's timeline and I only have an outline of what they're. 110 00:18:56.430 --> 00:19:24.120 Pat McGough: Their deadlines are so I can only give you what I think I know which might be not as accurate as what the city would report, but I do know the filing deadline is February 25 and I also know that to get a nother appraisal performed takes time, even if you. 111 00:19:25.740 --> 00:19:40.560 Pat McGough: Would incentivize them to expedite it, it still requires time so there's a certain amount of of time that once once we've passed a certain date. 112 00:19:41.130 --> 00:19:51.540 Pat McGough: The options begin to narrow and they begin to go away and in speaking with the appraiser um. 113 00:19:52.500 --> 00:20:15.360 Pat McGough: I believe that that window has already closed getting an updated appraisal may not even be feasible at this point so that's why, when I said time was of the essence, it is those progressions that deadlines that are narrowing our options moving forward. 114 00:20:17.010 --> 00:20:18.690 Christy Thompson: Thank you now the February 25. 115 00:20:19.770 --> 00:20:22.560 Christy Thompson: date is helpful to just keep in mind, thank you. 116 00:20:25.980 --> 00:20:37.950 Chelsea King: I do have just one question I was on the long range planning Committee as a liaison from the board when the committee had the discussions about land in general. 117 00:20:38.400 --> 00:20:57.210 Chelsea King: and expressed the desire to you know, ensure that we continue to do land cells and purchases as part as our strategic long range planning and and i've been on the board long enough to do multiple land sales involving purchasing and selling of land. 118 00:20:58.530 --> 00:21:12.000 Chelsea King: In my memory I recollect often the district purchases land at fair market value and typically sells it there, and I know you've provided one example in the. 119 00:21:12.630 --> 00:21:24.210 Chelsea King: presentation that you gave and i'm just wondering was was that example kind of a one off or do we have multiple examples of times that fair market value is used in land transactions. 120 00:21:26.550 --> 00:21:43.650 Pat McGough: I use that example because it was specific and on point to all the rules and code restrictions and charter of the city of Westland, but I can say in a general sense. 121 00:21:44.670 --> 00:21:55.350 Pat McGough: To my knowledge, virtually every transaction that we have made either to purchase or sell property which has always been made at fair market value. 122 00:22:00.810 --> 00:22:03.630 Chelsea King: Okay, thank you, I don't have any further questions and. 123 00:22:04.800 --> 00:22:14.460 Chelsea King: I believe, with no nobody else does, then, if there's anything further that Mr McCall or Dr ludwick you want us to know we can do that, otherwise, we can adjourn. 124 00:22:20.400 --> 00:22:28.950 Chelsea King: Okay Thank you so much for the information and we will, I think, at this point, wait and see what happens next. 125 00:22:29.400 --> 00:22:30.990 Pat McGough: All right, thank you very much. 126 00:22:31.110 --> 00:22:31.710 Louis Taylor: Thank you, Pat. 127 00:22:31.860 --> 00:22:32.340 yeah. 128 00:22:34.140 --> 00:22:35.340 Chelsea King: Thanks, I can time. 129 00:22:35.940 --> 00:22:36.540 Christy Thompson: Thank you.