Agenda Item # 1

Columbus Consolidated Government

Council Meeting

11/18/2014

Agenda Report # 57


TO: Mayor and Council

SUBJECT: Memorandum of Understanding - Muscogee County School District Property Exchange

INITIATED BY: David Arrington, Deputy City Manager

Recommendation: Approval is requested to execute a Memorandum of Understanding with the Muscogee County School District for the exchange of property for future redevelopment purposes.

Background: The City has assembled a large tract (approx. 33 acres) in South Columbus for redevelopment purposes. The City also has plans to make road improvements, streetscapes, and multi-purpose recreational trails in the immediate area to further promote development of the area. The City has a need for land to implement road improvements at Buena Vista Road railroad crossing. Additional right-of-way will be required for road realignments and construction. The Muscogee County School District (MCSD) has a need for land in South Columbus for future educational purposes. MCSD currently owns approximately 36 acres immediately adjacent to the City owned property.

Analysis: The proposed exchange of land described in Exhibit "A" of the Memorandum of Understanding will allow both organizations to meet critical needs for future developments. The Memorandum of Understanding will allow both organizations to conduct due diligence on the proposed exchange. The exchange of property will be for property of equal value based on appraisals agreed upon by both parties. If there is a difference in value of the property to be exchange, the party whose property is less in value than the other party's property shall pay the difference in cash at closing to the other party whose property is more valuable. Under the terms of the agreement the MCSD reserves the right to utilize two rooms on the Marshal Middle School Property based on terms agreed to by both parties.

Financial Considerations: The City will incur some cost during the due diligence period with the MCSD for appraisals and environmental reviews. Funds are budgeted in the Community Reinvestment Department Budget for this purpose.

Projected Annual Fiscal Impact Statement: The property exchange would reduce the ROW cost for the Buena Vista Road project. The City would assume maintenance responsibilities for the property being acquired but relived of the responsibilities for the property being conveyed. Maintenance costs for the Marshal Middle School site will be determined during the due diligence period.

Legal Considerations: Council must approval all Memorandum of Understanding agreements and property transactions.

Recommendations/ Actions: Authorize the Mayor to execute a Memorandum of Understanding with the Muscogee County School District for the exchange of property for future redevelopment purposes.



MCSD and CCG MOU.pdf

A RESOLUTION

NO. _____


A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE MUSCOGEE COUNTY SCHOOL DISTRICT FOR THE EXCHANGE OF PROPERTY FOR FUTURE EDUCATIONAL AND REDEVELOPMENT PURPOSES.

WHEREAS, the School District is the owner of those certain properties identified as the School District Properties on Exhibit "A" attached hereto (the "School District Properties"); and,

WHEREAS, the City is the owner of that certain property containing 33 acres, more or less, located on Fr. Benning Road and identified as the City Owned Property on Exhibit "A" attached hereto (the "City Owned Property"); and,

WHEREAS, the City is contemplating acquiring those certain properties identified as the City Acquisition Properties on Exhibit "A" attached hereto, which are contiguous to the City Owned Property (the "City Acquisition Properties"), and together with the City Owned Property hereinafter collectively referred to as the "City Properties"); and,

WHEREAS, the City Properties are in the immediate vicinity of a 7 acre, more or less, tract of land on Ft. Benning Road and a 28 acre, more or less, tract of land on Cusseta Road which are owned by the School District which the School District is holding for future use (collectively referred to as the "School District 35 acres"); and

WHEREAS, the City, as part of its efforts to revitalize the areas surrounding the City Properties and the School District 35 acres, is in the process of making certain road improvements to Cusseta Road and Ft. Benning Road in the immediate vicinity of the City Properties and the School District 35 acres, and is also in the process of developing the former railroad line property adjoining the City Owned Property and the School District 35 acres; and,

WHEREAS, the School District desires to exchange some or all of the School District Properties in exchange for some or all of the City properties for future use; and,

WHEREAS, the City desires to exchange the City Property for some or all of the School District Properties for its future use and revitalization of the areas surrounding properties; and,

WHEREAS, the parties shall have two (2) years, for the City to acquire the City Acquisition Properties and for the Parties to perform necessary due diligence with respect to the properties that will be in the final exchange, including, but not limited to, performing or obtaining title exams, surveying, environmental testing, appraisals and third party approvals, if any are required, in order to consummate the exchange; and,

WHEREAS, the Parties agree that the exchange of all the subject properties does not have to occur simultaneously and may occur in one or more exchanges during the Term, subject to the terms of the agreement; and,

WHEREAS, the Parties acknowledge that the total value of the School District Property exchanged and the total value of the City Property to be exchanged in any exchange that occurs during the Term shall be equal, or, if not, the party whose property is less in value than the other party's property shall pay the difference in cash at closing to the other party whose property is more valuable; and,

WHEREAS, after the time of the exchange of the Marshall Middle School property that is part of the School District Property, the City and the School District will enter into an agreement whereby the School District will have the right to continue to occupy and use space known as Rooms 102 and 103 of the building known as Building 40000 located on the Marshall Middle School property for such term and upon such conditions as the parties agree to; and,

WHEREAS, the Properties will be exchanged pursuant to limited warranty deeds.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

We hereby authorize the Mayor to execute the attached Memorandum of Understanding and hereby authorize the City Manager, City Attorney, Finance Director or their representatives to carry out performance of an exchange of all or part of real estate properties listed on Exhibit “A” to the Memorandum of Understanding.


___________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________ 2014, and adopted at said meeting by the affirmative vote of _____________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Buck voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Hunter voting __________.
Councilor Huff voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.

_____________________________ _________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor