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HomeMy WebLinkAbout8 Glenshire Drive sale of property Agenda Item # "TRUCKEE DONNER Public Utility District Memorandum To: Board of Directors From: Peter Holzmeister Date: April 10, 2007 Subject: Sale of Glenshire Drive property Why this matter is before the Board: This matter involves the sale of the Glenshire Drive property acquired by this District from the Glenshire Mutual Water Company. Sale of this land is important to conducting a final accounting of the process of merging the Glenshire water system into the District system. History: When this District acquired the Glenshire water system, we also acquired a parcel of land on Glenshire Drive that it had been used as its office and corporation yard. Our intent has always been to sell that land and transfer the cash proceeds to the Glenshire work order account so that the Glenshire rate payers receive the benefit. The arrangement between TDPUD and the Glenshire area is we would provide water to Glenshire and Glenshire would pay the cost to connect them to our system, plus the cost to make certain minor improvements in the Glenshire system needed to make water delivery possible, plus the cost to abandon the existing Glenshire wells. Part of the payment owed to TDPUD was satisfied by cash and other assets that Glenshire Mutual conveyed to TDPUD. But that was not enough to cover the full cost. A bill was still owing to this District. Part of that bill was satisfied by our issuance of debt in the amount of $1,740,000 that is now being repaid by means of the monthly surcharge to the water bills in Glenshire of $10.75. This surcharge expires in 2019 when the debt is paid off. The $10.75 may be reduced to a lower amount depending on the sale of the land. The remaining balance of approximately $145,000 still owing can be paid by sale of the land, and any amounts then remaining from sale of the land can be used to reduce the $10.75 monthly surcharge. The land is unusual in that it is a seven-acre parcel split by Glenshire Drive. The three acres on the south side of Glenshire Drive may not be built upon. The four acres on the north side has a building on it that was the office and a metal barn. It is a most attractive parcel. Glenshire Property The land has been declared surplus. It is difficult to appraise because it is a single parcel split by a road. Several individuals have expressed an interest in it. I would like to sell it as soon as possible. The Board discussed the alternative processes and seemed to agree that listing the parcel with an agent to actively market and sell the parcel would most likely generate the most favorable price. New information: Attached are four proposals from agents in Truckee. The proposals describe the marketing plan and quote a fee. My first thought is that we should not base a decision on fee quote alone, that marketing plan is an important element is selecting an agent. I am not the best judge of a good marketing plan, so I defer to others who have expertise in these matters. Recommendation: I recommend that the board choose a real estate agent to represent the District in marketing and selling the Glenshire Drive property. Encl: Prudential California Realty Truckee Realty Coldwell Banker (Kappy Mann & Jennifer Boehm) Coldwell Banker (Gale Etchells) Dickson Realty (proposal pending) 2 Glenshire Property Prudential California Realty 10800 Donner Pass Road,Suite 101 Truckee,CA 96161 Bus 530 587-3500 March 3>0,2007 Fax 530 587-3544 PU D Board Mcmbers www.prurealty.com PO Box 309 Truckee,CA 96160 RE:14629 and H630 Glenshire Drive Dear Board Members: Thank you for the opportunity to discuss the sale of the PUD Land in Glenshire. 1 am familiar with the property,having been a Glenshire resident for over 10 years and having sold property in the Glenshire community since 1985. 1 have included a Compartitivc'blarket Analysis for your consideration. The property is unusual in that the parcel is split by Glenshire Drive and the improvements are more suited for commercial or industrial use which is not allowed by the current-oning. 1 have used the most similar properties that are currently for sale or have sold within the past year. These were adjusted for amount of acreage,view,improvement duality,etc. Based on this information,a value of between$825,000 and$875,000 is given to the property. Commission of 5%would he charged on the ® selling price. This may be negotiated given special circumstances. Hong with my experience in selling real estate in the Glenshire market,I work with a team of realtors at Prudential who have a total of over 150 years of real estate experience. We meet weekly to discuss the market and share information about our listings and client needs. There are three Prudential offices locally with almost 100 agents that I also network with for maximum exposure to buyers. Most offices advertise on a rotational basis with each listing being advertised about once a month. 1 have ® requested and received approval to advertise your property weekly in the Sierra Sun as well as in the San *1 Francisco Chronicle,which many other offices do not advertise in. Prudential is recognized nationally as a leader in the real estate industry and has a huge presence on the Internet which helps bring in the maximum amount of buyers. I would provide a virtual tour for the property in the MLS and Prudential website along with direct mail,neighborhood postcards,agent flyers and tours. Please see the full marketing proposal for a more in depth view of all advertising exposure for your property. Having previously listed and sold two other properties that were owned by the Glenshire Mutual Watcr Company,I have experience working with board members in a professional and efficient manner. I also have extensive background in working with the Town of Truckee. I am very familiar with the planning and keep up on changes in policies and direction within the Town agencies. This could approval process be helpful to a buyer in dealing with possible--oning changes which would maximize the value of your land,resulting in the best price to you. I am looking forward to meeting with you at your board meeting and answering any questions you may have_ I hope you will agree that the combination of my experience and professionalism along with the support and backing of the Prudential network will he the best team to represent you in the sale of your property. K.Valerie Grcen kcal Estate Specialist PRUDENTIAL CALIFORNU REALTY Q An,ndependentN owned and operated member of The Prudential Real Estate Affiliates,Inc i,jr To: 'Tahoe Donner PUD Attn: Kathy Neus 11570 Donner Pass Rd. Truckee, Ca. 96161 Re: Glenshire Drive Property. Dear Kathy, I would like first to say thank you for contacting our office, Truckee Realty, regarding the possible marketing and sale of the Glenshire Drive property. As you are probably already aware of our downtown location, we have great exposure for all our listings with our front window display of all our listing. This would give great exposure to your property. In our conversation, you asked what my marketing would be for your property and what our office would charge. Just some of the ways we advertise and get exposure for our listings is through our MLS, Realtor.com, we have a weekly ad in the Sierra Sun as well as the color magazine of Homes & Land that we have great placement on page 2 of a very large publication with wide spread distribution. Also, Homes and Land has a web page that we put all our listings on for those that are internet savvy. I also have my own website that I would be able to feature your property on, located at mmcdonnell.com. Commissions are negotiable as you probably already know. Our office would charge between 6-8% (this amount would be split with selling office). The commission would be ,°stabli!hed upon the dGermination of the list price. Again, I would like to than you for the opportunity to market your property. 1 look forward to hearing beck from you what the Pl1D's final decision will be. Please feel free to call me with any questions you might have. Sincerely; Mark Mcllonnelt Broker/Associate Truckee Realty Jt 0060 Donner Pass Road a 0owntolwn `rruc ke-e • 5;A "'616. (530) 587-60 s7 ° =;300) A 8-7`32 - X (5301 53741'4,24 't'hEs information as oePmezi reiiab8� but-aaz uarvmtaed. "J--rsf€r-at'aan 7Z z' c _ • ® c,. � --�_�_��-.__.�.�..._��_ _�— _ 10095 DORCHESTER DRIVE TRUCKEE,CA 96161 (530)587-6051 BUS C3S (530)587-7422 FAX RESIDENTIAL BROKERAGE March 27, 2007 Board of Directors Truckee Donner Public Utility District Truckee, CA 96161 Re: Proposal to Market and Sell Properties: APN 49-011-29 and 49-011-31 Ladies and Gentlemen, Thank you for the opportunity to submit this marketing proposal. The following are the services we would provide should you decide to employ us as your Sales Representatives on the above two parcels: I. Work with the Board of Directors to determine a marketing price based on the most recent comparables and the pertinent land use possibilities. II. Multiple Listing Services A. List the properties in the MLS, along with 7 photos and virtual tour, B. spotlight the properties in the Member News area of our website; C. include 7 photos and a virtual tour on each listing in the MLS; D. offer to share 50/50 of the commission with whatever brokerage brings the buyer, E. attach associated documents such as links to plat maps and property profiles to the listing. III. Newspaper and Print Advertising A. Advertising every week in the Sierra Sun/Tahoe World in the Mountain Homes Section, B. one cover of the Mountain Homes; C. advertising each month in the Homes and Land magazine; D. 200 color just listed cards (see enclosed sample) sent to all contractors/developers that work in the Truckee-Tahoe area, E. 200 just listed cards sent to all neighboring properties; Owned And Operated By NRT Incorporated. Truckee Donner Public Utility District—Marketing Proposal March 27, 2007 Page 2 F. create Property Brochures and post in all Truckee offices. IV. E-Marketing A. Featured home spot on in rotation with our other listings, including virtual tour; B. advertising, including virtual tour; C. personal website marketing, - including virtual tour; D. MLS —IDX marketing, including virtual tour; E. website marketing, including virtual tour, F. website marketing, G. Craig's List for Sacramento and Reno, (alternating periodically). H. E-postcards will be sent to all Coldwell Banker Agents in Reno, NV and Truckee-Tahoe advertising this property. V. Signage A. We are prepared to offer the installation of an oversized"for sale" sign, if permitted by Glenshire/Devonshire Subdivision; B. whatever sized sign is installed will contain a flyer box which will have informational brochures. VI. Follow up A. The Board of Directors will receive a written update monthly (to coincide with their monthly board meeting) to update them on the status of their property in the marketplace. This report will show similar lots that have sold within the past month, those that are currently in escrow and those that are for sale; B. pricing will be reviewed monthly; C. advertising will be documented and presented to the Board of Directors as a part of this monthly report. Regarding the fees for the above mentioned services, we are prepared to perform all of these things with a listing agreement for a minimum of 6 months for a commission of 7% of the purchase price. 3.5% of this 7% will be offered to the agent in the multiple listing service that brings the buyer. This fee will be due and payable upon the close of escrow. Truckee Donner Public Utility District —Marketing Proposal March 27, 2007 Page 3 Enclosed, we have also attached some marketing materials showing why we feel that we and Coldwell Banker(the only agency that has an actual office in the Glenshire subdivision) are the best choice for the successful marketing of your properties. Thank you again for this opportunity. We look forward to hearing from you with regard to your decision on this issue. Sincerely, z Kappy Mann & Jennifer Boehm Enclos. • . BANKER Gale Etchells Coldwell Banker Residential Services Located in the only Glenshire real estate office offering superior location and exposure for your property Gale has been selling Real Estate in Truckee for over 22 years. Gale was just voted the "Best Truckee Realtor" for 2007 (Sierra Sun ballot) Marketing Plan attached includes regular advertising in the Sierra Sun, Homes and Land, superior internet exposure and placement with Realtor.com, California moves, galeetchells.com and Coldwell Bankers website. Commission for this listing would be 2.5% to the Buyers agent, and 2.5% to the Sellers agent for a total of 5%. All advertising fees to be paid by agent. Coldwell Banker believes this information to be correct but has not verified this information and assumes no legal responsibility for its accuracy. n.,—,<i,,.JA;...,Dermot..rh—i..—rn!hair num-id—inn T?FGTTIFNTT A T OD1-1VFD 4 f'c Dickson R E A L T Y Who else for something so important? April 12, 2007 Kathy Neus Truckee Donner PUD PO Box 309 Truckee, CA 96160 Dear Kathy, As a follow-up to our marketing proposal for your Glenshire properties as well as your voicemail message earlier this week, I am forwarding our fee structure per your request. As I am sure you're aware, commissions are negotiable and our standard fee is 5.5 to 6%, depending on marketing required. If you have further questions or need additional information, please give - me a call. Sincerely, Ul Schaller Broker Associate The Schaller Family Team 530-550-5007 11500 Donner Pass Road Truckee,California 96161 530.587.7444 Phone 800.541.4440 Toll Free 530.587.8064 Fax www.dicksontruckee.com ® CHRISCIES _.� G11EAt ESY.1Yli5