Cedar Street Bridge Land Exchange

Issue: Whether to exchange the Cedar Street Bridge for vacant land and 40 parking spaces.

Rule : A municipality may exchange land when it finds that two property values are equal and its in the best interests of the City.

Analysis: In the 80's, the City was going to have to pay for demolition of a bridge over Sand Creek. It was estimated that the demolition was going to cost approximately $100,000. Instead, a local developer offered to remove the scrap and build a structure on the previous right of way. The City agreed, vacated the right of way and leased the property to the developer for 99 years.

Under the lease, the first forty (40) years were leased for 1 dollar per year. The remaining 59 years were then according to a very vague equation for percentage of sales. In addition, the City guaranteed 40 parking spaces for the term of the lease in the City parking lot.

Clear Vision, LLC purchased the lease interest in the Bridge several years ago. Subsequently, they approached the City to condominiumize the Bridge for the remainder of the lease term, approximately 77 years. These negotiations were long and unsuccessful.

Clear Vision, LLC owns a small piece of property adjacent to City Hall. This property is zoned commercial. Clear Vision, LLC has requested to swap the City's interest in the Cedar Street Bridge in exchange for the 40 parking spaces and the parcel adjacent to City Hall.

The parcel of property adjacent to City Hall is assessed at $135,000. The City currently values parking spaces within the City at $10,000 each (for the purpose of in lieu fees). Therefore the consideration offered is approximately $535,000. In addition, the City has over-dedicated the parking spots in the City lot. If the City were ever to build a parking garage on the City lot or if Clear Vision, LLC were ever to request exclusive use of its spaces, the City would be in a very difficult situation.

It is extremely difficult to value the Cedar Street Bridge. The lease doesn't expire until 2086. There is no good way to determine the value of the City's current interest in the Bridge or the value of the Bridge in 2087, 77 years from now.

Conclusion: I voted for the property exchange and consider it a fair deal. It was important to me that the public retain the right to cross Sand Creek. This was done by an easement across the Cedar Street Bridge which will remain open to the public. The City doesn't have any right to the bridge until 2086. At that time, it is uncertain what condition the Bridge will be in. The City could have huge costs in repairing it. There is also additional value in eliminating the claim to parking spaces which will allow the City to build a parking structure in the future.