Broken Arrow City Council
Meeting of: 10/15/2024
Title:
title
Approval of and authorization to execute Resolution No. 1609, a Resolution to purchase approximately 32,701.33 square feet of land, located at 413 S Ash Avenue, from Union Pacific Railroad and approve and authorize execution of Fiscal Year 2025 Budget Amendment Number 10
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Background:
The grain tower located near the Rose District Plaza is perhaps the most iconic symbol of the Rose District. Earlier this year the City Manager became aware that the grain tower and approximately .17 acres of property near the tower would be auctioned on April 18, 2024. On April 2, 2024, in Executive Session, the purchase of the grain tower was discussed. Upon returning to open session, the Broken Arrow Economic Development Authority directed the City Manager to bid on the purchase of the tower.
On April 18, 2024, staff electronically bid $250,000.00 for the purchase of the tower. On April 22, 2024, a representative of DPA Auctions confirmed the City of Broken Arrow’s offer was accepted. The purchase price includes the grain tower and .17 acres of property located near the grain tower. The grain tower sits on property owned by Union Pacific Railroad and Hansen Mueller has a lease agreement for the approximately .25 acres located at 502 South Main Street which will be transferred to the City of Broken Arrow.
Representatives from Union Pacific Railroad have agreed to sell the 32,701.33 square feet of property to the City of Broken Arrow for $6.11 per square foot, for a total of $200,000. The property being sold is the property in red on the second attachment. It should be noted, the property in green on the attachment, identified as Reversion Area, will continue to be owned by Union Pacific Railroad; however, they will lease the property to the City of Broken Arrow, into perpetuity, for the price of $5,000 annually.
Cost: $200,000
Funding Source: Sales Tax Capital Improvement funds (STCI)
Requested By: Norman Stephens, Assistant City Manager - Administration
Approved By: City Manager’s Office
Attachments: Resolution No. 1609
Purchase Agreement from Union Pacific
Site Map provided by Union Pacific Railroad Company
FY 2025 Budget Amendment #10
Recommendation:
recommend
Approve and authorize execution of Resolution No. 1609 and approve and authorize execution of FY 2025 Budget Amendment No. 10
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