Santa Fe Station

[onthestrip]

Then again, who besides the city has any use for a train station? It's going to be tough to determine fair market value in terms of the value exchanged between a willing buyer and a willing seller for a well-located train station in OKC. I'd be really curious to see what goes into that appraisal.

There are a couple of ways to value this thing. One is based off surrounding comps and such, which is what most appraisers will look at. The other is a cap rate (say, 7.5%) of the income. If they were getting about $15k a month($180k/year) from Amtrak then your are looking at almost $2.4mil value. It looks like they have other income from it (parking, pinkitzel lease) so it could be worth close to $4mil pretty easily, based on a cap rate.

[Jim Kyle]

This. They really need a good PR firm, and a realistic negotiator. I volunteer. LOL

I suggest Bruce Willis to negotiate with them (a la "The Fifth Element")...

[Midtowner]

There are a couple of ways to value this thing. One is based off surrounding comps and such, which is what most appraisers will look at. The other is a cap rate (say, 7.5%) of the income. If they were getting about $15k a month($180k/year) from Amtrak then your are looking at almost $2.4mil value. It looks like they have other income from it (parking, pinkitzel lease) so it could be worth close to $4mil pretty easily, based on a cap rate.

I don't think comps are going to work. Comps only work to compare similar property. Where would you have to go to find similar properties--convention space/retail and a train station centrally located downtown? Dallas?

And as far as development potential, that location has almost endless possibility. I'm thinking $4MM sounds easy and even low.

[Midtowner]

Whoever said hire a PR firm, that's a really terrible idea. This is going the route of eminent domain. You do not want to lobby for a high commissioner's award, and if the city remains true to form, they'll end up with a real low ball number which the Brewer's expert should be able to tear to shreds.

[metro]

I said hire a PR firm, but to qualify that statement, I meant it in the sense of, to coach them in how to act before they make ridiculous public statements and proposals like they have been guilty of more than one occasion. This isn't the first time this same conversation has come up with the Brewers. To many people, they are seen as extortionists. That may be a little excessive, but they certainly project that message.

[Midtowner]

I said hire a PR firm, but to qualify that statement, I meant it in the sense of, to coach them in how to act before they make ridiculous public statements and proposals like they have been guilty of more than one occasion. This isn't the first time this same conversation has come up with the Brewers. To many people, they are seen as extortionists. That may be a little excessive, but they certainly project that message.

Extortionists? No. I think Jim Brewer was absolutely brilliant for acquiring the properties he did when he did it. There's nothing wrong with what he did there at all. Now was surface parking always the highest and best use? Definitely not. Do the Brewers make a decent living collecting for parking spots? I'm sure they do.

Their job is getting as much as they can off of those properties. Don't begrudge them that. That's business.

[HangryHippo]

Extortionists? No. I think Jim Brewer was absolutely brilliant for acquiring the properties he did when he did it. There's nothing wrong with what he did there at all. Now was surface parking always the highest and best use? Definitely not. Do the Brewers make a decent living collecting for parking spots? I'm sure they do.

Their job is getting as much as they can off of those properties. Don't begrudge them that. That's business.

And now what they're attempting could reasonably be called extortion. Counteroffering 21 million higher is not business.

[Midtowner]

And now what they're attempting could reasonably be called extortion. Counteroffering 21 million higher is not business.

They can't extort someone with the power of eminent domain.

This is a process.

[Rover]

They can't extort someone with the power of eminent domain.

This is a process.

So, when the city is being held hostage, the city should use ED and put an end to the hijacking.

[okcboy]

As part of the acquisition in 1998 the family deeded the land east of the train tracks from Sheridan to Reno for free to use as the plaza for the Bricktown Canal.

[Martin]

from april 1998... -M

[Martin]

from may 2000... -M

[Martin]

also from may 2000... -M

[okcboy]

After the fathers passing when it was determined no official lease was ever made with Amtrak, Gary Ridley made an official apology to the family in the city managers presence about the DOT's no response to meeting and document requests by the family for a year and a half that eventually led to the so called "lock out". He then called for the lease that is now in place and has been renewed for 5 years.

[Pete]

Steve said in his chat today that he expects the City to have ownership of this building by next month.

[HOT ROD]

score!

[Steve]

There will still be ongoing court action, it appears, but yeah, custody is set to go to the city either way.

[LakeEffect]

Potential settlement for City purchase of the Santa Fe Station in the works? City Council has a potential Executive Session item scheduled for tomorrow (December 3) to discuss a proposed final offer of $6,000,000 from the Brewers. If approved, they'll withdraw their request for a jury trial.

http://www.okc.gov/AgendaPub/cache/2...3014604944.PDF

[Pete]

^
Thanks so much for posting that.


Here is what is says in that memo, noting that the City opened with a $2 million offer and the Brewers countered with $23 million:

**************

Enter into executive session on advice of the Municipal Counselor to receive
confidential communications from its attorney regarding proposed settlement in the case
of The City of Oklahoma City v. Bricktown Real Estate, L.L.C., et al., Oklahoma County
District Court Case No. CV-2013-1083, as authorized by 25 O.S. (2011) § 307(B)(4),
because disclosure would seriously impair the ability of the public body to conduct the
litigation with settlement discussions in the public interest.

On May 21, 2013, the City filed the above-captioned condemnation case in the District Court of
Oklahoma County to acquire fee simple title to Subject Property for MAPS 3 Oklahoma City
Intermodal Transportation Hub. The Subject Property is the historic Santa Fe Railroad Station.
Dan Brummitt is the Assistant City Attorney representing the City in this case.

The Defendant, Bricktown Real Estate, L.L.C., is represented by Joseph H. Bocock with McAfee &
Taft, P.C.

The Commissioners were appointed and filed their Report on August 30, 2013, assessing damages
for the taking of the Subject Property in the amount of $4,500,000.00.

On September 26, 2013, the Defendant filed Exceptions to the Report of Commissioners contesting
the City’s legal right to take the Subject Property. On October 2, 2013, the Defendant filed a
Demand for Jury Trial on the issue of damages.

Mr. Bocock, on behalf of his client, has indicated to this office that the Defendant may be willing to
settle this case for the sum of $6,000,000.00, i.e. $1,500,000.00 over the Commissioners’ Award,
including costs and attorney’s fees, for which they would withdraw their Exceptions and Demand
for Jury Trial.

It is the recommendation of this office that the Mayor and Council retire into executive session with
the Municipal Counselor to receive confidential communications with its attorney regarding an
agreed settlement in this case.

[LakeEffect]

Thanks for moving it - I knew there was a more appropriate thread.

I think this is a fair deal for the City, considering the potential staff expense of a trial and the fact that it's nearly 1/4 less than what the Brewers wanted originally.

[shawnw]

The commissioners have ruled. If we pay another $1.5M under threat of trial, the taxpayers are being extorted. Not that I want to wait out a trial to resolve this, but good golly Brewer family. That said, if they agreed to put that extra $1.5M toward renovation of their Bricktown properties, then I say deal, as we all benefit from that. Also, I get that they need to make a reasonable return on their investment, but the commissioners should have factored that in during their ruling.

[warreng88]

Oklahoma City to acquire Santa Fe Depot after objections dropped | NewsOK.com

[BoulderSooner]

Great news

[Mississippi Blues]

Great news

Indeed.

[Pete]

Brummett said Thursday the station's ownership will be transferred to the city and that existing leases with a cupcake shop and a billboard company will be honored.

A spokesman for the Central Oklahoma Transportation and Parking Authority, meanwhile, said Brewer's operation of the adjoining parking lots is likely to end once the city acquisition is completed.

Really wish they'd remove those hideous electronic billboards. I can't believe they were ever allowed in the first place.