Monday, August 15, 2011

Dunwoody to Purchase 24 Acres

Below is the news release from the city announcing the intent to purchase three more plots of land totaling 24 acres.  Part of the purchase is contingent on the city passing the land acquisition bond referendum, which is on the November ballot.
I love the fact that the city has done an exceptional job of building up reserves to pay for part of the purchase.  This land could be otherwise used for multi-family housing, adding more students to our already overcrowded schools and more cars to our already overcrowded roads.
However, the rest of the purchase will have to come from a tax increase (the land acquisition bond).  While I'm almost always against tax increases, this one appears to make sense, although $33 million seems excessive (I am against the parks' improvement bond, but that's a blog post for another day).  Next Monday night's city council meeting should be interesting (by the way, go to Rick Callihan's blog at Dunwoody Talk to see a better map of the properties up for acquisition.  Rick's Photoshop skills are much better than mine, although the photo above did come from the city and not yours truly).

Dunwoody, Georgia – August 15, 2011 – The City of Dunwoody has concluded negotiations with American Medicorp and plans to acquire several key parcels, totaling 24 acres, in the Georgetown / North Shallowford area of Dunwoody. These purchases will move forward the implementation of the Parks, Transportation, and Georgetown Master Plans, which were all adopted earlier this year.

The City plans to conduct a public hearing as part of its regularly scheduled Council Meeting on Monday, August 22nd and will consider a Resolution authorizing the City Manager to execute a sales contract for the purchases.

Peachford Road Extension

Location: 4471 North Shallowford Road
Price: $1,436,000 ($278K per acre)
5.173 acre parcel contains 12,067 sq. foot office building
Purchase is the first acquisition of several that are necessary to extend Peachford Road to a new terminus point at Dunwoody Park Drive
Part of Transportation and Georgetown Master Plans

Park Land Acquisition

Location: 4553/4555/4575 North Shallowford Road (anchored by the former Emory Hospital site)
Price: $5,532,000 ($289K per acre)
Parcels total to 19.084 acres
Purchase adds needed park land acreage
Part of Parks and Georgetown Master Plans
Purchase contingent on Parks Acquisition Bond Referendum

Funding for the Peachford Road Extension purchase will be funded from existing cash reserves and the transaction is expected to close by the end of 2011. The purchase of the park land is contingent on the passage of the bond referendum on the November 2011 ballot. Should the bond fail to pass the City can withdraw from the contract without penalty.

At closing, the City has agreed to reimburse the seller $600,000 for demolition costs at the former Emory Hospital site.

1 comment:

Chip said...

Blogger Bob:

I know you're a residential broker, but any idea how the City is coming up with these valuations?

Recognizing that "price negotiations" can't really be conducted in a wide-open environment, do you know if the City has engaged a commercial broker or acquisition consultant to help ensure that Dunwoody is getting the best reasonable price for these properties?

I'm concerned that if and when the City starts to acquire "stalled" or "failed" in-fill developments, we don't become a source of lucrative bailout for speculative builders.