POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: X A
MEETING DATE: 6/28/2022
TITLE
Request for Appraisal Funding & Letter of Mutual Interest Regarding the Property at 825 Port Road
RECOMMENDED ACTION
Receive report, discuss, and provide direction
ANALYSIS
The property located at 825 Port Road (APN# 02704109) -- commonly referred to as “The Boathouse” – is being prepared for sale by its current owner, Blake Juntz. The Arena Cove Stewards (ACS) are exploring the possibility of purchasing the property for public benefit through state and federal grant funding. At Mr. Juntz’s invitation, Vice Mayor Burkey, City Planner Scott Perkins, your City Manager and members of Arena Cove Stewards recently toured the property.
Arena Cove Stewards is requesting the City Council to jointly sign a “Letter of Mutual Interest” between the City, Arena Cove Stewards and Mr. Juntz regarding the property (see attached). Such a letter expresses the intent of all parties to work together towards a common goal. The letter is required to apply for grant funding from the state and federal government.
The grant application processes also require an appraisal by a state and certified appraiser. ACS proposes utilizing the services of Chris Bell, who conducted the appraisal for the purchase of Mill Bend and has assisted several land trusts .
Mr. Bell has requested an appraisal fee of $7,500. The Arena Cove Stewards have requested financial assistance from the City to fund that appraisal. The financial split between interested parties – Mr. Juntz, Arena Cove Stewards and the City of Point Arena -- would be $2,500 each.
Members of Arena Cove Stewards will in attendance at the meeting, at which time they will present more information.
FISCAL IMPACT
$2,500 appraisal cost share
ATTACHMENTS
• Proposed Letter of Intent from Arena Cove Stewards and City of Point Arena • Letter of Engagement from Appraisal Associates
• Maps and parcel information for 825 Port Road
CITY MANAGER SIGNATURE
_________________________________
Paul Andersen, City Manager
APPRAISAL ASSOCIATES
Real Estate Appraisal & Consultation Services
June 23, 2022
Kathleen Chasey
Board Member, Arena Cove Stewards
[email protected]
707 320-8895
Dear Ms. Chasey,
This letter of engagement is to formalize your request for appraisal of the Coast Guard Boat House Property located at 825 Port Road in the community of Point Arena, in coastal Mendocino County. This agreement is made between you, representing the Arena Cove Stewards, as the client, and Appraisal Associates. By joining in this agreement, the client and Appraisal Associates agree as follows:
• The Client for this appraisal assignment is The Arena Cove Stewards, represented by Kathleen Chasey.
• The intended use of the report is to provide support for decision-making regarding possible acquisition of the property, including funding the acquisition. • The Definition of Value to be used in the report is taken from the California Code of Civil Procedures (as required by the State of California), which states:
“The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available”
• The Effective Date of Value for this assignment is to be the most recent date of property inspection, likely sometime in mid September, 2022. • The subject property includes Mendocino County APNo. 027-041-09, which includes a small, roughly 5,000 square foot parcel within the Point Arena Port.
The property is improved with an historic boathouse, originally constructed for the Coast Guard to house row boats used for ocean rescue, and more recently used as a fish processing station. It is understood that you will provide further information regarding the subject parcel, including any historical information available (recent purchases or marketing attempts, improvements, etc.) • The work to be performed is to provide a written Narrative Appraisal Report of the fee simple interest in the subject property. The work to be done will include 540 S WAIN AVENUE・S EBASTOPOL CA・95472
707 569-8891 ・ [email protected]
APPRAISAL ASSOCIATES
Real Estate Appraisal & Consultation Services
review and analysis of comparable sold properties and current listings in the general area and generation of a Narrative Appraisal Report. The Appraisal Report is to be made to current 2020-21 USPAP standards (which have been extended through 2022), as well a DGS appraisal Specifications, and will include discussions of the analyses and conclusions made within the assignment. It is understood that the report is to be used to support funding the acquisition of the property by the Arena Cove Stewards and the City of Point Arena. • The Appraisal Report is to be based on the following extraordinary assumptions and/or hypothetical conditions: None at this time.
Appraisal Associates will complete this assignment and provide a written Narrative Appraisal Report to you within 60 days of a start date on September 6, 2022. Our fee for the appraisal assignment is to be $7,500, and is due one third upon acceptance and the remainder upon delivery of the report. Any further work, including the full narrative report will not be started without written authorization to begin, and a copy of the Preliminary Title Report has been received.
If you would like us to proceed with this assignment please sign, date and return a copy of this letter, along with the $2,500 retainer fee. It is expected that you have diligently read this letter of engagement and that you will respond to our office within two weeks.
Please let me know if you have any further questions or comments.
Respectfully,
June 23, 2022
Chris Bell, MAI, Appraisal Associates Date
Client Date
540 S WAIN AVENUE・S EBASTOPOL CA・95472
707 569-8891 ・ [email protected]
DRAFT….DRAFT….DRAFT
Letter of Mutual Interest City logo Steward logo
6/28/2022
This letter will confirm the mutual interest of the City of Point Arena (City), the Arena Coast Stewards (Stewards) and Blake Juntz in the eventual purchase of Mr. Juntz’s Mendocino County property known locally as the ‘Historical Coast Guard Boat House’ (Boat House). The Boat House is identified as real property by APN 027-041-09-00 located at 825 Port Road, Point Arena, CA 95468.
The basis for this mutual interest is as follows:
1. The purchase price will be determined by an independent market appraisal of the property by Chris Bell, MAI, a qualified appraiser pre-approved by the State Coastal Conservancy (SCC). Copies of the appraisal will be furnished to all parties.
2. The Stewards and the City will work with the community to determine the proposed uses of the Boat House. These uses will be presented to the SCC and the California Coastal Commission for their approval.
3. Based upon those proposed uses, the City and Stewards will prepare a proposal to the SCC for grant funding for the acquisition of the Boat House.
4. As grant funding can take 1-2 years, the City and Stewards will work to obtain interim acquisition costs to cover the purchase price based upon the appraisal through either a private party or bridge funding. At this point Mr. Juntz and the City would enter into a formal Sellers Agreement.
5. The three parties have a mutual interest in working together to make any eventual purchase agreement escrow period as short as possible, with the understanding that the SCC protocol for completing such an escrow must be adhered to.
6. It is further understood by all parties that, while this letter is not legally binding upon the parties, it is an expression of mutual interest to continue to work together toward the eventual sale and purchase of the Boat House as outlined herein, to the mutual benefit of each party.
Signatures with dates
Paul Andersen, City Manager Point Arena
William Arana, President, Arena Cove Stewards
Blake Juntz, Owner, Historical Coast Guard Boat House
825 Port Road APN# 02704109
825 Port Road (1) City of Point Arena (2,3,4)
LIST 1
DETAIL
1 Property Address: 825 PORT RD POINT ARENA CA 95468
Ownership
County: MENDOCINO, CA
Assessor: KATRINA BARTOLOMIE, ASSESSOR
Parcel # (APN): 027-041-09-00
Parcel Status: ACTIVE
Owner Name: JUNTZ VERNON BLAKE TTEE
Mailing Address: PO BOX 1334 MENDOCINO CA 95460
Legal Description:
Assessment
Total Value: $56,880
Land Value: $56,880
Impr Value:
Other Value:
% Improved:0%
Exempt Amt:
Use Code: 19
Tax Rate Area:002-000
Year Assd: 2021
Property Tax:
Delinquent Yr:
HO Exempt: N
Use Type: COMMERCIAL
County Zoning:
Census Tract:
Price/SqFt:
Sale History
Sale 1 Sale 2 Sale 3 Transfer
Document Date: 12/15/2017 10/25/2012 09/27/2007 12/15/2017 Document Number: 16196 15912 17880 16196
Document Type: GRANT DEED GRANT DEED
Transfer Amount: $35,000
Seller (Grantor):
Property Characteristics
Bedrooms: Fireplace: Units:
Baths (Full): A/C: Stories:
Baths (Half): Heating: Quality:
Total Rooms: Pool: Building Class:
Bldg/Liv Area: Park Type: Condition:
Lot Acres: Spaces: Site Influence:
Lot SqFt: Garage SqFt: Timber Preserve:
Year Built: Ag Preserve:
Effective Year: