03-13-2014 Planning Comm. Agenda

Home Browse Search

continued to maintain a quality building that is in very good condition. If you were to physically inspect our property you would find that it has good curb appeal and adequate green space that exceeds any of the other industrial properties in the park. The portion of area that we would like to utilize for outdoor storage, abuts other outdoor storage, is 500 feet from South Owasso, and is not visible from Spruce Street. Considering our unique location we believe that having an outdoor storage allowance that exceeds what is currently approved but is less than what would be approved for under 1 -1 is appropriate. Our approach in this process is to first work with the city directly to try to resolve this issue. If we are unable to come to a resolution we intend to hire a qualified attorney that specializes in land use issues to help us mitigate the potential damage to the property due to the loss of outdoor storage. We understand that we have not been down zoned but question the reasoning behind our inclusion in the I -P district. We also have serious concerns on the viability of our property if we cannot provide adequate outdoor storage. The potential impacts of which are as follows: Provided by Shenehon Business & Real Estate Valuation Lost rent on 22,500 square feet of outdoor storage = to annual rent of $10,000 to $20,000 and a loss in property value of $100,000 to $200,000. Lost rent due to vacancy = we would anticipate the loss of one of our current tenants occupying approximately 10,000 square feet of space. Assuming a vacancy period of 6 to 12 months and a blended rate of $5.00 per square foot this is equal to rent loss of $54,000 to $108,000. New tenant costs — we would anticipate a new tenant would require TI's of $15 per square foot for office and $2 per square foot for warehouse, which is equal to $46,000 (assuming 20% office). These may seem a little high but part of the argument is the space almost has to be repositioned to accommodate a different space user (not a contractor and some kind of light manufacturer). Leasing commissions could run $12,500. Total amount is $58,500. Assessed value reduction — we believe that our current assessed value of $860,000 reflects the value of the outdoor storage and we would envision spending $10,000 to $20,000 on an attorney and an appraiser in hopes of reducing the assessed value to reflect the properties loss in market value. Total value loss $100,000 to $200,000, not including factors such as increased vacancy and turnover costs, with increased out of pocket costs that could range from $150,000 to $200,000 (rounded). We understand that these may not be compensable but it is important to illustrate the financial impact that the loss of the outdoor storage would cause. Lastly, due to this problematic zoning our property has received we are requesting the city deal with this issue as a non action issue. It is unfair to be asked to spend the time and money to defend a property issue that clearly was zoned improperly from the start.