HomeMy Public PortalAboutRES-CC-2022-33City of Moab
Resolution No. 33-2022
CITY OF MOAB RESOLUTION 33-2022
A RESOLUTION AUTHORIZING THE APPROPRIATION OF UP TO 5825,000
AND INSTRUCTING THE CITY MANAGER TO EXECUTE PURCHASING
AND CLOSING DOCUMENTS FOR THE ACQUISITION OF REAL
PROPERTY LOCATED AT 513 EAST 200 SOUTH
The following describe the intent and purpose of this resolution:
a. On October 31, 2022, the City of Moab (City) executed a contract for the
purchase of a duplex located on approximately 0.16 acres of real property, commonly
known as 513 East 200 South (the Property), subject to the completion of a due diligence
review and compliance with Utah Code § 10-8-2.
b. The City intends to utilize the Property for transitional housing for City
employees.
c. The City has undertaken due diligence in connection with the transaction,
including an appraisal.
d. The appraisal confirms that the fair market value of the Property is equal
to or greater than the contract price of $825,000.
e. No adverse conditions with respect to the Property have been identified
to date.
f. Pursuant to Utah Code § 10-8-2 the City: (1) prepared a study (Exhibit 1)
that analyzes and demonstrates the purpose of and need for an appropriation of $825,000 to
purchase the Property; (2) held a public hearing on December 13, 2022, to take public
comment on the purchase of the Property and the related appropriation; and (3) provided
notice of the public hearing and made the study available for public inspection 14 days
before the public hearing.
g. The City is prepared to close on the Property having completed its due
diligence and satisfied all applicable legal requirements.
THEREFORE, the Moab City Council:
1. Authorizes the appropriation and expenditure of a sum of not to exceed
$825,000 to purchase the Property, which the City will pay to the closing agent at closing to
pay for the City's contract obligations as purchaser and incidental closing costs.
2. Authorizes the City Manager, Carly Castle, to take all steps needed to finalize
the purchase of the Property on behalf of the City, including but not limited to executing all
necessary closing and financing documents.
City of Moab
Resolution No 2022
3, This resolution mill take effect ii i ediatey on passage pursuant to Utah Code
I0-3-`719.
PASSED AND APPROVE ED y a maJoIity of tl e Moab City Couneil this
December. 202r .
SIGNED:
Joett
ayor
Attachment, Exhibit 1
Al1EST
Sun rear Johi se
Center Street
Utah °84532#"2
1435-259-5121
�AB
EXHIBIT t
UTAH
DATE: November 16, 2022
TO: Moab City Council
FROM: Carly Castle, City Manager
TITLE: Property Purchase Study re: 51.3 East 200 South, Moab Utah 8453
The City Administration recommends the purchase of a duplex. located at 513 East 200 South in
Moab, Utah. The duplex is a new build at 2,908 square feet and sits on a 0.16 -acre parcel. The
duplex contains a 4 -bedroom, two -bathroom unit; and a two -bedroom, one bathroom unit. The
property appraised at S830,000, and the City has offered to purchase the duplex for $825,000,
subject to the City Council's approval of the purchase and appropriation of the purchase price.
The units will be rented at market rate to employees for a term of six months. The units would be
considered transitional housing, with the expectation for City employees to find a permanent
residence within six months
Utah law authorizes municipalities to appropriate money for any purpose that provides for the
"safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the
inhabitants of the municipality." Utah Code § 10-8-2(3). Before a municipality can appropriate
funding to acquire real property, it must hold a public hearing to receive comments on the
appropriation, prepare a study that "analyzes and demonstrates the purpose for an appropriation,"
and make the study available for review at least 14 days before the public hearing. Utah Cocle
10 -8 -2(3)(d —e).
A municipality must consider three factors when conducting the study: (1) th.e benefit to the
municipality; (2) the purpose of the appropriation and how it will enhance the safety, health,
prosperity, moral well-being, peace, order, or convenience of the inhabitants of the municipality;
and (3) "whether the appropriation is necessary and appropriate to accomplish the goals and the
objectives of the municipality in the area of economic development, job creation, affordable
housing, elimination of a development impediment, job preservation, the preservation of historic
structures and property, and any other public purpose," Utah Code § 10-8-2(3)(e)(iii)(A—C)
(emphasis added).
City staff conducted the required study, which found that appropriating $825,000 to purchase the
duplex would comply with Utah law for the following reasons.
The Ap ro
Employees
riation
1 Benefit the City by Providing T
sitional Housi
The benefit of this appropriation is that it will secure transitional housing for city employees who
are recruited from outside of the community. The City has difficulty recruiting quality candidates
for these positions because of a lack of available housing, and the City also has difficulty
retaining employees who lose their housing mid -employment. A staffing evaluation for the City
of Moab revealed that 37 total positions are likely to be hired from outside of the community,
with 51% or 19 of those positions being law enforcement officers. The City's five-year average
turnover for Director -level positions is 22 percent, and it is 38 percent for the Police Department.
This means, on average, the City could have a new employee recruited from outside the
community on average of once per month.
2. The Appropriation Will Enhance the Safety, Health, Prosperity, Moral -Well Being,
Peace, Order, Comfort, or Convenience of the City's Inhabitants
Immediate availability of housing is a major hurdle for recruiting, and the current lack of
transitional housing hinders the City's ability to hire and retain essential positions, including law
enforcement, economic development, fire personnel, and other staff needed for the City to
function appropriately. Providing transitional housing will support the City's efforts to hire and
retain personnel, particularly law enforcement officers who comprise the majority of the City's
expected outside hires. The appropriation is therefore necessary to enhance the safety, health,
prosperity, moral well-being, peace, order, and convenience of the City's inhabitants.
3. The Appropriation is Necessary and Appropriate to Support the City's Reasonable Goals
and Objectives Regarding Affordable Housing, Job Preservation, and Other Public
Purposes
For the above reasons, appropriating funds to purchase the duplex is necessary to accomplish the
City's public purpose goals regarding the provision of services related to affordable housing, job
preservation, economic development, and other public purposes, such as public safety and public
health. The appropriation is also appropriate because the City's purchase price for the duplex is
$5,000 below the appraised value.
2