Washington Evening Journal

Fairfield Ledger   Mt. Pleasant News
Neighbors Growing Together | Jun 22, 2018

Business park gets first sale

By David Hotle | Jul 25, 2017



During the July 18 meeting of the Washington City Council, it was approved to accept a counter offer from the Kalona Cooperative Technology Company (KCTC) to purchase lot 6 in the park, located southwest of the city’s wastewater treatment plant, at its listed price of $30,000 for the .93 acre lot. The proposal also included an option to purchase a second lot, but without a building requirement the council had requested.

During the July 5 meeting, Washington Economic Development Group director Ed Raber had approached the council to discuss the offer. He said KCTC had requested a one-year option to buy the adjoining lot 5 at a reduced price of $20,000. Lot 5 is listed for $35,000 and includes 1.12 acres. The council had made the counteroffer requiring a building within a year. The counteroffer from KCTC was received the following week.

“I read the memo and it seems like an example of a good compromise to me,” council member Jaron Rosien said. “They are paying full price but maybe not sticking to the time line we wanted. it seems like an excellent counter offer.”

Council member Kathy Salazar, who had recommended the city’s offer requiring a building to be constructed on the site within a year, said she understands now that KCTC didn’t want to build on the second lot and that KCTC wanted to consolidate the two lots. She said if the council accepted the price, it should be done on the condition the council won’t oppose a consolidation of the lots and if KCTC purchases the second lot that the council not require the company to build on the lot.

“I think that would satisfy what I understand their issues to be and that it would get us an additional $5,000 for the second lot,” Salazar said.

City administrator Brent Hinson said it is not uncommon for businesses to want to buy two lots in a business park. He said if KCTC is going to bring dvelopment to Washington and the council probably shouldn’t discourage that because the lots aren’t platted the way KCTC would like them.

The 30-acre park was completed late last year. The lots were sold by the city to WEDG on contract and are being marketed at the cost of $30,000 per acre. Each lot comes with water, sewer, and electrical hookups and is considered “shovel ready.” WEDG, which is marketing the lots in conjunction with an Iowa City realtor, receives a 6 percent commission for lots sold.

Comments (0)
If you wish to comment, please login.