Why is the City giving this land away for $700,000?

The most recent RFQ/I included information about the soil conditions after the previous developer, Homestead Partners/JMS Custom Homes, withdrew when the city would not participate in soil remediation.  In a competitive process, JMS offered $680K for the land, but ultimately wanted the city to forgo that and pay for the clean-up. The City would not negotiate. The City conversed with many interested developers during this round of the RFQ/I but ultimately none of them submitted proposals because the city would not participate in the clean-up, making their projects financially unfeasible. Lifestyle is paying for 100% of the soil remediation which is expected to exceed $500K. A $1.2M investment to make this parcel buildable equates to $510.6K per acre pre-public improvements. It should also be noted that this development maximizes the green space and will make investments in walk ways and pickle ball courts on private property for use by the general public, while also leaving Auditor’s Road open. It has a much smaller building footprint than the previous town home proposal that allows it to maximize open green space.

The City’s investment in buying blighted properties, the majority at the height of the market pre-recession, is not an indication of the current market value. In 2008, the city had an option to buy 5575 Shoreline for $136K, and it sold in 2013 for $44K. Tax Increment Financing is an economic development tool that local governments use to fund the public costs of economic revitalization and growth. This development will create over $1.7M in TIF through 2031, in addition to $1.86M in other fees and revenues which is why the majority of this council and the previous council consider this a win-win.