Morgan Hill city councilmen would never sell their homes without
first knowing its market value, so why would they sell city-owned
property without an appraisal?
Morgan Hill city councilmen would never sell their homes without first knowing its market value, so why would they sell city-owned property without an appraisal?
But the council, who are also the Redevelopment Agency’s Board of Directors, agreed to do just that when they sold land at 55 East Fourth St. for $303,481 without having the property appraised.
When the RDA bought the 8,276 sq. ft. parcel in 1991 , it cost $197,000 which also included a home that has since been relocated. The land was purchased by Glenrock Builders, who plans to build residential and commercial development as part of their Sunsweet project on Depot Street.
Though Mayor Dennis Kennedy and Councilman Mark Grzan had reservations in selling the property without an appraisal, other city council members and city staff said requiring an appraisal now would delay an important project to revitalize Morgan Hill’s downtown. They said timing was an important issue in the minor decision to sell the parcel and an appraisal would delay the property another six to eight weeks. The delay would prevent Glenrock from meeting the October deadline to apply for housing permits.
Likewise, City Manager Ed Tewes said an appraisal could actually come in less than what Glenrock was willing to pay. The city based the property’s value on the proposed library site downtown. The developer bid on the property two months ago, allowing plenty of time for an appraisal to be completed before the city signed off on the deal.
Because requiring an 11th-hour appraisal on this piece would have blindsided the developer and hindered a needed downtown development project, we can understand why the city approved the sale. However, this case should be the exception, not the rule when dealing with publicly owned property.
It’s hard to believe, though not entirely inconceivable, that the property’s value only increased by a little over $100,000 in the 14 years the city has owned it, even without the house that was relocated. Now citizens will never know what the property was truly worth.
If for no other reason than to give residents the disclosure they deserve, the council should pass an ordinance requiring an appraisal on all city land prior to selling it.
The council and city staff must remember they don’t own these properties – the people do – and the city should take every step possible to ensure that the public’s interest is best served in a fair and above-the-board manner.
