Park City-style government surplus sale: a $1 million condo in Empire Pass
March 2, 2019
A ski-in, ski-out setting on the slopes of Deer Valley Resort.
An address in the exclusive Empire Pass development.
Vaulted ceilings and appliances made of stainless steel.
The real estate advertisement resembles many others in Park City marketing places on the slopes. The contact for the Ironwood condominium that is for sale, however, is not a real estate agent but a City Hall staffer. The municipal government holds a condominium in an Ironwood building at 8789 Marsac Ave. and is preparing to dispose of the property in what will essentially be a government-surplus sale involving a coveted location.
City Hall has listed the two-bedroom, one-bathroom condominium at $1 million, the appraised value, according to Park City officials. The place is 939 square feet and, marketing materials say, has "amazing views and access to world-class skiing and summer trails are just outside."
The municipal government came to own the condominium after it was built by the Ironwood developers as part their workforce or otherwise affordable housing requirement. City Hall rules demand large developers build workforce housing in an effort to help ensure there are living quarters for some of the staffers generated by a project.
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In the case of the Ironwood unit, according to City Hall, an assessment to fund work on the building's roof in combination with regular homeowners association dues impacted the affordability of the unit for a member of the workforce. A City Hall report indicated the work on the roof involved a special assessment on the condominium of $28,188.65.
Heinrich Deters, who manages City Hall properties, said the owner of the unit planned to move. He said the municipal government held the right of first refusal should the unit have been put on the market. Officials evaluated the possibilities if City Hall acquired the unit and opted to purchase the condominium through the right of first refusal. The purchase price was $250,000, well below the appraised value, and the deal was completed in 2018.
"In a sense, it is a for sale by owner," Deters said.
The Park City Council will eventually consider any offers for the condominium. The elected officials must also remove a restriction on the deed designed to ensure the unit remains part of the inventory of workforce housing. Removing the restriction will allow City Hall to sell the unit at market price rather than the workforce price.
Should the unit fetch the asking price of $1 million, City Hall would net $750,000 after the $250,000 expenditure for the acquisition. Any revenues will be put "straight into the affordable housing budget," Deters said. Perhaps, he said, revenues could be used as City Hall builds a second phase of the workforce or otherwise restricted Woodside Park development in Old Town. Shifting any revenues from the sale of the condominium in Ironwood to a City Hall housing project would essentially move a workforce or otherwise restricted unit from a remote Empire Pass address to a central location. That would provide someone living in a unit easier access to bus lines and services, City Hall says.
Officials had received several inquiries about the condominium by the middle of the week. The City Council will review all offers that staffers deem to be legitimate. Deters said there is not a timeline for a sale. State law allows a municipal government to discuss real estate transactions in closed-door meetings. Any sale, though, would be approved in a public setting.
More information is available on the City Hall website.