City Hall acreage appraised at $1.1 million
by Jeff Switzer
WOODINVILLE--While the City Council elected to buy 3.14 acres south of City Hall for $1.65 million, there is apparently some disparity--$750,000 worth--between the asking price and the appraisal, made available after the sale.
The land was appraised by Washington Appraisal Services at $1.1 million, a number which reflected a complex equation that assumed 96 units could be built on the lot. Those 96 units were estimated to be worth $15,000 each in the 48-unit-per-acre zoning, for a total of $1.44 million.
The $1.44 million was then discounted 15 percent each year for two years to $1,088,847 for speculated risk. The city offered $1.1 million, which was flatly refused on June 19 this year. The developer, LeisureCare, Inc., was asking $1.85 million for the parcel.
Jim Granger of the Granger Group, consultants hired by the city for the negotiations, recommended the council consider a $1.45 to $1.65 million range. The final purchase agreement had $1.75 million scratched out and replaced with the final price paid: $1.65 million.
City Manager Joe Meneghini said the $1.44 million was closer to a fair market price.
"It is clearly within market value of land in downtown Woodinville," he said. "The price paid is not out of line with the appraisals."