VISTA — City leaders in Vista have obtained an appraisal for a 2-acre future park property they agreed to purchase in June for $2.1 million after initially failing to do so under their city policy.
The Vista City Council unanimously approved the purchase of the land at 536 Matagual Drive on June 27 from sellers Thomas, Julian and Selena Shadle, who accepted the city’s discounted offer after initially asking $3.5 million.
The land was sold on the contingency that it would be developed into a city park, drawing excitement from residents and city leaders alike.
However, the sale, expected to close before the end of the month, later drew criticism from some Vista residents who wondered why the city had not appraised the land. Reporting by the Union-Tribune later revealed that existing city regulations require an appraisal for such purchases.
The Union-Tribune first reported on the purchase sans appraisal in mid-August, with some City Council members defending the process.
Just days later, the city changed course when Mayor John Franklin said they would pursue an appraisal, and in asking the city to seek an appraisal policy, it was discovered that the city has a 2003 policy on the books requiring an appraisal for any property with a fair market value of more than $25,000.
Franklin said he and other council members were unaware of the policy in June and that the council did not even discuss the possibility of an appraisal when they approved the purchase.
“It was an oversight, and it was a big oversight,” Franklin told The Coast News. “We respect and value transparency, which we rank first. If the public thinks there is anything being hidden, then what should be a win of a new park becomes a loss.”
City spokesman Fred Tracey said Wednesday that the city is paying $4,000 for the appraisal, expected to be completed by Aug. 28, and that the results will be publicly available. Tracey declined to share the appraiser’s name to avoid any influence on their work.
City Attorney Walter Chung told the U-T he was also unaware of the 2003 policy and, therefore, did not inform the council of their obligation to obtain one back in June.
At the City Council’s Aug. 22 meeting, Chung confirmed that the results will be reviewed and discussed before the sale closes.
Chung also confirmed Franklin’s assertion that the council did not discuss an appraisal in a closed session at the time of the purchase approval. The council approved a limited waiver of closed-session confidentiality to allow this information to be made public.
According to Redfin, the 536 Matagual Drive property was purchased in 2011 for $250,000 and is currently valued at around $760,000. Zillow places its value estimate at about $620,000.
Franklin said the council felt the initial valuation of $3.5 million was reasonable, so the owner’s agreement to sell it for around $1 million less seemed like a win-win. The real estate broker for the property did conduct a thorough evaluation at the time, he said.
Franklin added that if the city’s appraisal comes up with a significantly different figure and is not in the city’s favor, the council will reassess whether to purchase the property.
“It should have been an enormous win. Our staff felt that the valuation was reasonable at $3.56 million, and when the property owner agreed to sell it for $2.15 million, that was a significant contribution,” Franklin said. “We felt that the whole thing was favorable to the people. It was still an absolute oversight, and we deserve to take a lump because we did not observe our own process.”
In the future, Franklin said he would like to see the city regularly review the appraisal policy and bolster it to make it “unambiguous.”
Real estate broker for the property owners, Bob Willingham, said he did not find it particularly odd when the city did not conduct an independent appraisal since deals will often be judged by fair market price, and appraisals can cost thousands of dollars.
Back in 2019, residents in the Vale View neighborhood pushed back against a proposal from the same property owner to develop the land into a hotel. The plan was scrapped, with the city and property owners later discussing purchasing the land for a park.
