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ITEM: direction on the acquisition of the wanderers executive golf course located within the platted subdivisions of Lakefield South 2A and 2B
REQUEST: Council direction regarding the acquisition of the Wanderer's Executive Golf Course located within the platted subdivisions of Lakefield South 2A and 2B. In the event direction is given to enter into negotiations to purchase the property, staff recommends a purchase price not to exceed $1,071,575.51 or $28,311.11 / acre for the purchase of a net acreage of 37.85 acres in an "as is" condition and with each entity paying their own closing costs.
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EXPLANATION: Wanderers Golf Club LLC (Club) offered to sell to the Village of Wellington the Executive Golf Course in 2013 for $28,311.11 per acre based on an appraisal completed by SF Holdings for the Club. Wellington has considered acquiring the Wanderers Executive Golf Course for park purposes. In anticipation of Council's consideration, the Village obtained three additional appraisals of the property in 2014 for use in determining an appropriate purchase offer. The executive summaries of those appraisals obtained by the Village are attached. Briefly, the appraised values were:
Appraisal Firm Appraised Value Per Acre Value Comparisons
Anderson & Carr $1,400,000.00 $34, 696.00/ ac nurseries
Callaway & Price $700,000.00 $17,348.20 /ac golf courses
Appraisal & Acquisition $3,485,000.00 $86,369.27/ ac vacant lands
Average Appraised Value $1,861,667.00 $41,681.15/ ac
SF Holding $1,274,000.00 $28,311.11/ ac public lands
The current owner has offered to sell the Village the Executive Golf Course which has been out of play for the past seven years. Some maintenance (mowing of the grass) by the Club has continued during this period, Should Council wish to acquire the land it can be used as park land and open space. Considering all four appraisers evaluated the potential for future development of this property differently, the SF Holdings appraisal provided by the Club is closest to the median between Anderson/Carr and Callaway/Price who performed their appraisals for the Village.
The survey provided by the Club contains 40.35 acres of golf course of which 1.5 acres is actively utilized as a practice facility (putting/chipping green). In addition, the Club is requesting 1.0 acre of Village owned lake area adjacent to and abutting the practice area for future development (parking lot). The net acreage being purchased would be 37.85 acres.
Should Council decide to direct staff to purchase the property, funds are available from the General Fund Unassigned Reserves. The potential impact to the General Fund Unassigned Reserves is a reduction to approximately 26% to 27% of the 2015 General Fund budgeted expenditures fund balance.
An alternative option for consideration is use of Water and Wastewater Unassigned Reserves. This option requires the expansion of water reuse distribution into the property.
Additionally, Public Works funds and staff would be required for ongoing annual maintenance. The preliminary estimate is approximately $100,000 per year.
Other purchase considerations include the property's purchase conditions of "as is". Meaning the turf grass is an assortment of grasses and weeds, the irrigation system has not been operated for the stated out of play time frame, asphalt pathways are in various states of usefulness and the drainage systems (primary-outfall piping, secondary-inlets and piping and tertiary-greens and bunker under drains) are assumed to be in various states of operable condition. These "as-is" conditions are not a deterrent to the repurposing of the property as a park but are to advise Council of its current state of usefulness and that some interim improvements maybe required to improve the property's use as a passive park.
A draft resolution can be prepared which directs the Village Manager to enter into negotiations to purchase the property in the event Council so directs.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Funds are available from General Fund Unassigned Reserves. The potential impact to General Fund Unassigned Reserves is a reduction to approximately 26% to 27% of the 2015 General Fund budgeted expenditures fund balance.
An alternative option for consideration is use of Water and Wastewater Unassigned Reserves. This option requires the expansion of water reuse distribution into the property.
Additionally, Public Works funds and staff would be required for ongoing annual maintenance. The preliminary estimate is approximately $100,000 per year.
Budget amendments and transfers would be required for either option and for increasing the maintenance budget.
WELLINGTON FUNDAMENTAL: Protecting our Investment
RECOMMENDATION: Council direction to staff on the acquisition of the Wanderer's Executive Golf Course located within the platted subdivisions of Lakefield South 2A and 2B. In the event direction is given to enter into negotiations to purchase the property, staff recommends a purchase price of $1,071,575.51 or $28,311.11 / acre for the purchase of a net acreage of 37.85 acres in an "as is" condition and with each entity paying their own closing costs.