2021-409-Order No. 2021-050 Recorded 10/19/2021REVIEWED
WZM
LEGAL COUNSEL
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Recorded in Deschutes County
Steve Dennison, County Clerk
Commissioners' Journal
C ES
2021-409
CJ2021-409
10/19/2021 10:53:40 AM
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Designating Kristie Bollinger, the
Deschutes County Property Manager, as the
Deschutes County Representative for the Purpose
of Signing Documentation for the Sale of Multiple
Deschutes County Owned Property Located in the
La Pine Industrial Area, La Pine
* ORDER NO.2021-050
WHEREAS, the Board of County Commissioners of Deschutes County has authorized the sale of property
in the La Pine Industrial and La Pine Industrial Site Phase II plats specifically, Lot 2 is 5.73-acres located at 51365
Russell Road, known as Map and Tax Lot 221013C000700; `Common Area' is 5.59-acres located at 51385 Landers
Court, known as 221013C001400; Lot 8 is 1-acre located at 16869 Finley Butte Road, known as Map at Tax Lot
221013C000200; Lot 9 is 1-acre located at 16857 Finley Butte Road, known as Map and Tax Lot 221013C000300;
and Lot 10 is 1-acre located at 16835 Finley Butte Road, known as 221013C00400, La Pine Oregon 97739; and
WHEREAS, Deschutes County received an offer (Purchase and Sale Agreement (PSA)) from JSW
Properties LLC (Purchaser) to purchase property as follows: Lot 2 for Two Hundred Twenty Four Thousand Six
Hundred Thirty Eight Dollars and Twenty Cents ($224,638.20); Common Area for One Hundred Eighty Two
Thousand Six Hundred Twenty Five Dollars and Thirty Cents ($182,625.30); and an exclusive option to
purchase Lots 8, 9 and 10 for Fifty Four Thousand Four Hundred Fifty Dollars ($54,450) per Lot for a total of
One Hundred Sixty Three Thousand Three Hundred Fifty Dollars ($163,350); and
WHEREAS, the due diligence period will be no more than One Hundred Seventy Five business days
(175) from the date the PSA is executed unless County and Purchaser agree in writing to extend; and
WHEREAS, closing shall occur no later than May 31, 2022 unless County and Purchaser agree in
writing to extend; and
WHEREAS, the Purchaser has agreed to pay no less than Twenty Thousand Dollars ($20,000) earnest
money; now, THEREFORE,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY
ORDERS as follows:
Section 1. Kristie Bollinger, the Deschutes County Property Manager, is designated as the Deschutes
County representative for the purpose of signing the necessary documents for the sale of property as described
above in the La Pine Industrial and La Pine Industrial Site Phase II plats, La Pine.
SIGNATURES ON FOLLOWING PAGE
PAGE 1 OF 2- ORDER No. 2021-050
�44,
Dated this _� of O , 2021
ATTEST:
R ding Se retary
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
r AAI'-- - - ---_.....
ANTHONY DEBONE, Chair
PHIL C ANG, Vice C air
PA TI ADAIR, Commissioner
PAGE 2 of 2- ORDER No. 2021-050
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Maptax #221013C000200 - 1.00 Acres &
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Created: 9/30/2021
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{ Maptax #221013C000700 - 5.73 Acres &
221013CO01400 - 5.59 Acres
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Legend
Taxlot - Private Owned
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® 221013C000700 - Deschutes County
7 ® 221013CO01400 - Deschutes County
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Created: 9/30/2021
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<'<BOARD OF
COMMISSIONERS
AGENDA REQUEST & STAFF REPORT
MEETING DATE: Wednesday, October 13, 2021
SUBJECT: Consideration of Board Signature for Order No. 2021-050, authorizing the
Deschutes County Property Manager to execute the documents associated with
the sale of County -owned property located in the La Pine Industrial area, La Pine
RECOMMENDED MOTION:
Move approval of Order No. 2021-050, authorizing the Deschutes County Property
Manager to execute the documents associated with the sale of County -owned property
located in the La Pine Industrial area, La Pine
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes County owns various properties in the La Pine Industrial and La Pine Industrial Site
Phase II plats. Lot 2 is 5.73-acres located at 51365 Russell Road, known as Map and Tax Lot
221013C000700 with a Real Market Value (RMV) of $112,630 as determined by the Deschutes
County Assessor's Office; the'Common Area' is 5.59-acres located at 51385 Landers Court,
known as 221013CO01400 with a RMV of $85,090; Lot 8 is 1-acre located at 16869 Finley Butte
Road, known as Map at Tax Lot 221013C000200 with a RMV of $40,670; Lot 9 is 1-acre located
at 16857 Finley Butte Road, known as Map and Tax Lot 221013C000300 with a RMV of $40,670;
and Lot 10 is 1-acre located at 16835 Finley Butte Road, known as 221013CO0400 with a RMV
of $26,250.
John Williams, who is the owner of Quicksilver Contracting Company, currently leases portions
of Lot 2 and the Common Area described through two separate leases. A 4.68-acre portion of
Lot 2 that includes an Option to Purchase at $0.90 per square foot and a 4.57-acre portion of
the'Common Area'.
Mr. William's real estate holding company, JSW Properties LLC, owns 37.68-acres of adjacent
property. Collectively with the leased property, Mr. Williams operates Quicksilver, which is a
forestry services and forest products manufacturing company. As anticipated, Mr. Williams has
submitted an offer to purchase property from the County as follows:
a) Lot 2 in its entirety of 5.73-acres for $0.90 per square foot or $39,204/acre for a total of
$224,638.20.
b) 'Common' area in its entirety of 5.59-acres for $0.75 per square foot or $32,670/acre for
a total of $182,625.30.
c) Lot 8 in its entirety of 1-acre located at 16869 Finley Butte Road known as Map and Tax
Lot 221013C000200; exclusive Option to Purchase at $1.25 per square foot or
$54,450/acre for a total of $54,450.
d) Lot 9 in its entirety of 1-acre Located at 16857 Finley Butte Road known as Map and Tax
Lot 221013C000300 ; exclusive Option to Purchase at $1.25 per square foot or
$54,450/acre for a total of $54,450.
e) Lot 10 in its entirety of 1-acre located at 16835 Finley Butte Road known as Map and Tax
Lot 221013C000400; exclusive Option to Purchase at $1.25 per square foot or
$54,450/acre for a total of $54,450.
There is some understanding that there may be environmental challenges related to a portion
of Lot 9 and possibly Lot 10. Prior to County ownership of these properties, the surrounding
community often dumped debris and trash at this location. Mr. Williams intends to complete
environmental discovery by way of an environmental consultant, and if issues are found, he
may opt not to proceed with the property purchase or ask for a discount on the purchase
price.
In 2019, the County and City of La Pine entered into an Intergovernmental Agreement (IGA)
that provided the City full power and authority for the marketing, promotion and sale
negotiations for County -owned property located in the industrial area (La Pine Industrial,
Newberry Business Park and Finley Butte Industrial Park) for the purpose of economic
development. The IGA provides for a 50/50 split of gross proceeds from sales; IGA attached for
reference. The "Common" area is not included on the list of applicable properties, but the
Board agreed in a recent executive session to include the sale of this property in the 50/50
split.
The offer includes paying a real estate commission to Duke Warner Realty in an amount equal
to 2.5% of the sales price for all or a portion of the real property identified in the Purchase and
Sale Agreement including Lots 2, 8, 9, 10 and the "Common Area". Per the terms of the IGA, the
City of La Pine is responsible for covering this cost, which equates to approximately
$14,265.33.
Other terms of the sale include a $20,000 earnest money, a 175 business day inspection period
and closing to occur no later than May 31, 2022.
BUDGET IMPACTS:
The total offer for Lots 2 and the'Common' area is $407,263.50, and the total offer through an
exclusive Option to Purchase Lots 8, 9, & 10 is $163,350.
ATTENDANCE:
Kristie Bollinger, Property Manager