Washington Evening Journal
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Fairfield Ledger   Mt. Pleasant News
Neighbors Growing Together | Nov 23, 2017

Offer made for two business park lots

By David Hotle | Jul 10, 2017
The Washington City Council learned Wednesday, July 5, it might have the first interested party in two of the 10 lots.

 

After marketing the Washington Business Park for only about six months, the Washington City Council learned Wednesday, July 5, it might have the first interested party in two of the 10 lots.

Washington Economic Development Group director Ed Raber approached the Washington City Council Wednesday evening with a proposal from Kalona Cooperative Telephone Company (KCTC) to purchase lot 6 at the listed price, but has asked for an additional one-year option to purchase lot 5, just to the south of lot 6, at the reduced price of $20,000. The council made a counteroffer requiring KCTC to begin building with in a year in exchange for the agreement. Raber said he would contact KCTC with the proposal.

“I have met with them several times to figure out ways we could help,” Raber said. “They initially had some very different thoughts on how to accomplish their goals. We went out and looked at the industrial park. They identified they were most interested in lot 6, the corner parcel on West Buchanan Street.”

Raber said once a client decides to make an offer, the client is referred to a realtor. He said the offer came on June 29. Raber also said the intent is for KCTC to erect a building on lot 6. He said KCTC is also interested in some other ground for future expansion. If both lots are purchased, it would provide slightly over two acres of ground.

“With them having the contingency on lot 5 to purchase that within the next year, it ties that lot up from being able to be sold for a year,” council member Kathryn Salazar said. “It also allows them to buy that lot at a reduced price - in my opinion a very substancial reduction. However, I am very excited KCTC wants to build in the industrial park. I think if we are going to hold that lot for them at a reduced price for a year, we should have some compromise with them for our willingness to do that.”

She proposed if the city exercises the option for lot 5, KCTC must build on that lot within one year. Salazar said the city would know there would be some payback for the city in a short time in exchange for holding the lot.

Council member Jaron Rosien said he has no problem with the reduced price on the lot or holding the lot for KCTC. He said there are still eight other lots that can be sold. He also said KCTC has also put thousands of dollars into the community by installing fiberoptic cable in Washington.

Raber said the covenants of the park state if a business bought a lot and did nothing with it, the only buer from the business could be the city, and at the original purchase price. Raber also said the main benefit to the city is the future property tax revenues from the land rather than the sale price.

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.

WEDG, which is marketing the lots in conjunction with an Iowa City realtor, receives a 6 percent commission for lots sold. The council makes decisions on how the park is sold.

For more information on the industrial park, contact Raber at 653-3942.

Comments (1)
Posted by: Glen Peiffer | Jul 11, 2017 02:56
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