The plan to have a parking garage in Uptown took yet another step toward construction.
The Sedona City Council approved the purchase of 460 Forest Road for $410,000 during its meeting Tuesday, June 8. The city had purchased the adjacent property located at 430 Forest Road in April. The proposed parking garage will straddle these two lots.
Staff had been in negotiations with the owner of the 460 Forest Road parcel and reached terms for the potential purchase of the property. A report states the terms outlined in the agreement for 460 Forest Road reflect best and final offers from each party and are now presented to the city council for consideration and approval.
The fair market value for the parcel was identified through two separate professional valuations performed by Appraisal Technology and Jeff Windle. The parcel was valued at $250,000 and $310,000, respectively.
This item was on the council’s consent agenda and there was no discussion among council. However, council and staff discussed the disparity between an appraised price and purchase price in April. The fair market value for 430 Forest Road was also identified through two separate professional valuations. The parcel was valued at $375,000 and $380,000. With a purchase price of $480,000, council members asked City Manager Justin Clifton to explain the $100,000 difference.
“Every purchase is a little different,” Clifton said in April. “Sometimes you’re looking for a parcel and there are 15, 20 or 30 that will work. In that situation, appraised value is very meaningful. But in a different situation, whether you’re a public buyer or a private person, if you want the one parcel on the hill and the person isn’t selling it, if you want it, you’re going to pay more than it’s worth.”
The report states that an adequate cash balance exists in the accumulated paid parking monies to pay for this purchase. However, the land acquisition was budgeted for the later years in the Capital Improvements Plan. Excess budget capacity is available in the Affordable Housing Fund. Of the $2 million in Affordable Housing contingency budget, only $105,000 has been obligated for Fiscal Year 2019-20. A budget transfer will be made from the Affordable Housing contingency budget to cover the land purchase and any ancillary costs.
In late February council directed staff to create a design for a two-story, three-level parking structure to be built on those purchased lots. The bottom story would be below ground level or subgrade, and above would be ground level with uncovered parking on the roof or third level. In all, it would look like a one-story structure of nearly 12 feet in height.
The cost of the 272-space garage is estimated at $11.5 million, which includes construction and land acquisition. Once a design and an additional cost estimate is complete, council will then vote on whether or not to approve construction of the garage.
“Let’s finally do something and let’s not kick the can down the road,” Vice Mayor John Martinez said in February. “That’s what we’ve been doing for 20 years. Let’s get a garage done.”
