Proposal on park purchase

first_imgPALMDALE – The city will pay $27.8 million for the 120-acre Fairway Business Park, under the terms of a proposed settlement aimed at resolving a legal battle over the value of the property. Under the proposal, Palmdale will pay developer AC Warnack $27.8 million for the business park, on Avenue O between Seventh Street West and Division Street. The purchase will be made using money from additional property tax revenue generated by redevelopment, with payoff expected in 2026. “It’s a negotiated settlement I think we can all agree to,” Mayor Jim Ledford said. “This will allow us to develop the park.” The value of the site has been in dispute for more than three years and in litigation for two of those years. [email protected] (661) 267-5743 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! Under the terms of a 1998 agreement for the property, the city was to acquire the property in late 2003 for fair market value. At that time, a city-commissioned appraisal estimated the value at $2.2 million while Warnack’s appraisal came in at $23 million. A third appraisal was conducted and it also came in at about $23 million. Palmdale’s Redevelopment Agency then exercised a right to rescind the purchase of a portion of the site, more than 30 acres. The actions prompted litigation over a number of points, including whether the purchase price was properly set; whether the redevelopment agency properly exercised its right to rescind portions of the purchase; and whether the city had completed improvements and landscaping it had agreed to conduct. Under the terms of the proposed settlement, the city will also pay Warnack $130,000 for legal fees. last_img

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