HomeMy WebLinkAbout2000-07-19 Agenda Packet - Board (14) 41
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Staff Report
To: Board of Directors
From: Peter L. Holzmeister
Subject: Acquisition of Steele property
Date: July 14, 2000
Background
The District entered into an option agreement to acquire three parcels owned by Chris Steele. The
purchase price, if we exercise the option, is $658.281. Attached is a map showing the three parcels.
We have until July 20 to exercise the option. I am recommending that we purchase the land.
The three parcels total 138 acres. We need approximately 10 acres for development of a storage
yard for our use. Given the prices we are now seeing in real estate in Truckee, it will be difficult for us
to buy 10 acres of light industrial land for our storage yard for $658,000. Based of that need alone,
this transaction makes sense.
However, we also need a water storage tank site to serve development in the area north of 1-80 along
Highway 89. This land has a site at the proper elevation. When that area develops, we will require
the developers to contribute toward the cost of the tank site, thus recouping a portion of this
investment.
There is a significant piece of this site, beyond what has already been discussed, that is attractive for
development. This area can be sold at a significant gain to the District. When all of this is
considered, I believe we can provide significant benefit to our customers by acquiring the land.
Due Diligence Process
We needed to make sure there were no insurmountable limitations on use of the property. We
evaluated the following matters:
Title report: Attached is a title report for the three parcels. The title report describes various
easements, discussed below. I have read every exception document and see no impediment
toour use of the site
Easements: There are several easements over the sites that were reviewed. There are
easements for a power line, for access to the Sanders well, for telephone and telegraph lines,
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for a water line, for a sanitary sewer line, and for road access. These are easements we
have known about from the beginning, and they are where we believed them to be. They
cause no problems.
Phase 1 Environmental Review: SRK Consulting of Reno conducted a Phase 1
environmental review of the site, a copy of their report is attached. No concerns are raised
here.
Quarry Pit: I spoke with Gavin Ball of the Town of Truckee regarding any remediation
requirements associated with the quarry pit. Gavin performed a high level search for mining
permits issued for the APN on which the pit sits, and found nothing. He believes that this
quarry activity predates the laws that required filing of a reclamation plan. Thus, there is no
requirement for site remediation.
General Plan Zoning: The easterly most parcel is designated as light industrial. The other
two sites are designated for residential development. We believe that we could expect to
change the middle parcel to light industrial, at least as regards to southern portion of it.
Roadway Access Through the Site: Access through the south is secure. The Town's
proposed third Tahoe Donner road provides access through the site from the east and west.
There is also an opportunity to work with the new owner of the Shane property to establish
access from...
Walk the Site: I have walked the entire site to make sure I am familiar with the terrain. Part
of the site is a deep trench through which flows Trout Creek. This area is quite beautiful, but
not easily developable. It would probably remain as open space. Another part of the site is a
perfect hill for a future water storage tank. There are section of the site on the northeast and
southeast that appear very attractive for development.
Options:
(1)Allow the option agreement to lapse. We keep$658,000. We need to find land for storage yard.
(2) Exercise the option. We pay $658,000. We have land for our storage, for a tank site, and to sell
at a financial gain for our customers.
RECOMMENDATION: I recommend that the Board exercise the option to acquire the three parcels
from Steele Family Trust at a purchase price of$658,281.
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