HomeMy WebLinkAbout13 Glenshire Land Sale Agenda Item # 13
Public Utility District I
WorkShop
To: Board of Directors
From: Peter Holzmeister
Date: March 15, 2007
Subject: Sale of Glenshire land
Why this matter is before the Board: This matter involves the possible 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 transfer the cash �ffice oceedsand
to�heoration Glenshae work order accounrd. Our intent has t ys
been to sell that land and trans p
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 $895,800 still owing can be paid by sale of the land, we hope.
es on
The land is unusual in thaiDs a seven-acre
not beparcel built upon.by Glenshire
four acresive. The three on the north siderhas a
the south side of GlenshireY
building on it that was the office and a metal barn. It is a most attractive parcel.
New information: 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 and would like the Board to discuss the process. Do we list with an
agent? Do we sell it ourselves using District staff? Do we auction it in some manner? These
are matters I ask the Board to consider.
Recommendation: I have no recommendation at this time. This is a workshop matter.
Glenshire - Estimated Interest Due to the Land Sales Trust Fund
Activity Date lonth End Balanc LAW Rate stimated Interest
7/31/2003 E " ,�. 0.01653
8/31/2003 '96 � i 0.01632
9/30/2003 °I` 3 s & � 0.01635 1 ¢izc .
10/31/2003 �jjj� �. 0.01596 �1, :k
11/30/20031c 0.01572 ,0�36 I
12/31/2003 0.01545
1/31/2004 z' BYf 0.01474 -1t2I'
2/28/2004 ' e,:9 i 5 0.01528
3/31/2004 «f s 4 k 0.01440 i l
4/30/2004 JO r00 9� 0.01455 ��1,��T�4 a":
5I31/200417,4 0.01426
�
il
6/30/2004 ff €# 89i 0.01469 �, t
CIP
7/31/2004 �� t � 0.01604 t, I ,
8/31/2004 IE ( � �` 0.01672E �_, 1 ti�.
9I30/2004 9, �d2� 0.01771 �� _` ,2 �r' 9�
10/31/2004 $42� �t# 0.01890 a t32, 4 ;
11/30/2004 8 3 1$4 0.02003
12/31/2004 844,915.79 0.02134 1,502.54
1/31/2005 846,418.34 0.02264 1,596.91
2/28/2005 848,015.25 0.02368 1,673.42
3/31/2005 849,688.66 0.02542 1,799.92
4/30/2005 851,488.59 0.02724 1,932.88
5/31/2005 853,421.46 0.02856 2,031.14
6/30/2005 855,452.61 0.02967 2,115.11
7/31/2005 857,567.71 0.03083 2,203.23
8/31/2005 859,770.95 0.03179 2,277.68
9/30/2005 862,048.63 0.03324 2,387.87
10/31/2005 864,436.50 0.03458 2,491.02
11/30/2005 866,927.52 0.03636 2,626.79
12/31/2005 869,554.31 0.03808 2,759.39
1/31/2006 872,313.69 0.03955 2,875.00
2/28/2006 850,587.44 0.04043 2,865.77
3/31/2006 853,453.22 0.04142 2,945.84
4/30/2006 856,399.05 0.04305 3,072.33
5/31/2006 859,471.38 0.04563 3,268.14
6/30/2006 862,739.52 0.04700 3,379.06
7/31/2006 866,118.59 0.04849 3,499.84
8/31/2006 869,618.43 0.04946 3,584.28
9/30/2006 873,202.70 0,05023 3,655.08
10/31/2006 876,857.79 0.05098 3,725.18
11/30/2006 880,582.97 0.05125 3,760.82
12/31/2006 884,343.79 0.05129 3,780.05
1/31/2007 888,123.85 0.05156 3,815.97
2/28/2007 891,939.82 0.05181 3,850.95
895,790.77
$95,861.11
$799,929.66
Total owed to District $895,790.77
Glenshire Water System
Finances
Preliminary Estimates
7
• Cost to provide service $3,200,000
• District received from Glenshire $1 ,112,150 �
• District borrowed (MSG 1552) $1 ,740,000 $2,8527000/*
• Amount still owed to District $ 6
Status of MSG 1552 loan
• Term expires in 2017
• Amount is $ 1 , 740 , 000
• Payment is billing surcharge of $ 10 . 75 per
month
• Annual payment is $ 166 , 784
--7 '3)/(-,,7
i Y 5-17�
Revenues in
• 2004 $ 176 , 912
• 2005 $ 182 , 785
• 2006 $ 183 ,914
• Excess revenues = $43 ,253