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IM moves forward to sell former Khoury property

September 18, 2012
The Daily News

By LINDA LOBECK

Staff Writer

IRON MOUNTAIN The city of Iron Mountain is moving ahead with its real estate sales policy to put out a request for proposals (RFP) for the city-owned property at 1010 N. Stephenson Ave the former Khoury property.

City Manager Jordan Stanchina said that the RFP sets forth guidelines which will be used to consider potential development projects. He added that, separate to the purchase and redevelopment RFP, the council could request offers for an outright purchase of the land without any redevelopment.

"In this case, the potential purchaser would follow the existing Real Estate Sales Policy, which includes the purchaser bearing the cost of an appraisal that would determine the sales price," Stanchina said.

Included in the RFP are three goals for the site - enhance the city tax base, maximize the financial return to the city for the sale of the land, and increase commercial and business activity on the north corridor of the city.

The city's vision for the site includes a project that is appropriate for the area that will "include commercial development consistent with the character of the surrounding properties and neighborhoods and a project that will help increase commercial and business density in this particular area of the city."

The property is described as being approximately 11 acres with frontage on U.S. 2 and is currently zoned Business 2. The city already has done a Phase I and Phase II environmental assessment and a baseline environmental assessment.

Proposals for the property must be submitted in the format that the city has, which includes that they be sealed and be sent to city hall. The proposals must be submitted no later than 4 p.m. on Oct. 29.

A pre-proposal meeting will be held on Thursday, Sept. 27, at 1 p.m. at city hall to discuss the RFPs and goals and objectives with prospective submitters and to answer questions.

To go along with this, the council at Monday's meeting approved a selection committee to work on the RFPs. This committee includes Mayor Bruce Rosen, Mayor Protem Dale Alessandrini and Councilman Ted Corombos.

"We are just trying to get something going on this so we can get someone to submit an RFP or a proposal outright for the purchase of the entire property," Stanchina said.

Alessandrini noted that when the property was bought it was overvalued and they paid more for it than it was worth.

The assessed value today for the property is $575,851, but the Tax Increment Finance Authority (TIFA) purchased it for $875,000 in 2007.

Stanchina said that the council at that time did not take any action on this purchase since it was completed by the TIFA Board.

Rosen asked whether they had the ability to sell a portion or subdivide the property if it is advantageous to the city.

"I'd like to take something that would be positive action for the city on this. I just need to know if we have that flexibility," Rosen said.

City Attorney Gerry Pirkola said that is possible. "There is a lot that the council can do with this. And there's a lot of flexibility with this process."

Stanchina agreed. "You're not locked into anything until you sign a purchase agreement. You just need to stay consistent to the real estate policy."

Linda Lobeck's email address is llobeck@ironmountaindailynews.com.

 
 

 

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