CC - Agendas - City Council - REGULAR - 5/13/2014

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Prescott City Council Special Voting Meeting April 8, 2014 Page 2 Councilman Blair asked what the purchase amount was for Watson and Willow Lakes. Mayor Pro Tem Lamerson said, with interest, it was approximately $32 million. Councilman Blair noted that open space was purchased, before the Open Space initiative was approved. He also referred to the purchase of The Scar, on the side of Thumb Butte. Mr. Baynes continued, saying that in fiscal year 2014, $500,000.00 had been budgeted for Open Space and another $500,000.00 is on the budget for fiscal year 2015, subject to Council approval in June 2014. He said that the City of Prescott had an offer from Mr. Wirth on April 8, 2013, which was declined. The City received a second offer from Mr. Wirth on February 5, 2014. The offer has been discussed with Mr. Wirth and the Granite Dells Preservation Foundation. The property is located outside the City limits. The City is being asked to acquire 80 of the 83 acres. The Granite Dells Foundation would hold title to the additional 3 acres containing the buildings and other facilities. Mr. Baynes noted that a private benefactor is willing to contribute $1 million, with $500,000.00 applied to the purchase price of the 80 acres and the balance to the Foundation for startup costs for the 3 acre parcel. He continued, by saying that, as part of the offer Mr. Wirth is requesting a 50 foot wide access and utility easement to the Storm Ranch property. Mr. Baynes showed a map of the area and noted that the improvements had not been addressed in the proposal. Councilman Kuknyo asked about the purpose of the easement crossing the Peavine Trail. Craig McConnell, City Manager, said it was for access and utilities. Councilwoman Wilcox thought this was a good time to make a purchase of an important piece of key property, because it was the 150th Anniversary of the City of Prescott. She said the Dells are the entry point to one of the most marvelous geographic wonders in the region. She said the revenue stream will exist until December 2015. The City will collect $26 million dollars by 2015. She would like to get an appraisal, for a basis for comparison and did not want to see the 80 acres developed. Councilwoman Wilcox asked Council to consider creating a small team of Council members to discuss the offer with City staff. She commended the Foundation and all of the organizations who have raised money for this purchase. She noted that the Granite Dells Foundation was willing to assume the responsibility for maintenance of the buildings. She said there are many other partners that could be brought in, including the County and Prescott Valley. Councilman Arnold would like to see the Dells piece preserved. He said the property was overpriced at $4 million and he does not feel that it was solely the City of Prescott's obligation to acquire the property. He said the property has a massive value, preserving it for open space and also for tourism. He was concerned about the property becoming an active facility. He would like to see Council give direction to pursue discussions with