Thursday, October 29, 2015

How much is an acre worth?

Posted By on Thu, Oct 29, 2015 at 3:48 PM

The Olympic Museum is to be built on property located approximately where the red strip begins at the top of this illustration.
  • The Olympic Museum is to be built on property located approximately where the red strip begins at the top of this illustration.


How much is an acre of property worth? Who can say for sure? It all depends, might be the best answer. Where's it located? How is it zoned? Is there contamination that carries a hefty price tag?

All of those questions are at play in the City Council's plan to transfer approximately one acre of property to an entity controlled by David Jenkins, owner of Nor'wood Development Group, the biggest developer in the region, at no cost.

The strip of land totaling 42,766 square feet is located at 228 W. Cimarron Street and 400
S. Sierra Madre Street. It was acquired by the city in 1958 and 1969, but now the city has no use for it.

Moreover, the property is contaminated with pollutants from decades of operations of a gas plant nearby.

As noted in a resolution regarding the transfer, "due to its shape and size, utilization of the Property has limited potential development value to the City for its purposes; and ... no City department or enterprise is interested in receipt of the Property."

So the city has struck a deal to give the property to SRPC LLC, which owns property adjacent to the parcel in question, which in turn will donate a piece of it to the Olympic Museum and Hall of Fame. The Jenkins family already has donated 1.7 acres to the museum.

From the resolution: 
The contract and deed from the City to SRPC will require the transfer of a portion of the Property by donation to the entity responsible for the development of the United States Olympic Museum, a Colorado nonprofit corporation, and will shift responsibility for the management of any necessary environmental mitigation and remediation costs for the Property to SRPC.
According to a presentation given to Council on Monday, the property is valued at $76,979, but carries a pollution remediation cost of $354,710, meaning the property carries a negative value of $277,731, the presentation said.

Council plans a vote sometime in November.

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