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La Porte awards Beachwood Lakes sale to Park Street Community LLC for $1.87 million
Summary
The Board of Public Works accepted a bid and approved moving forward with the sale of Beachwood Lakes to Park Street Community LLC under a development agreement that leaves infrastructure obligations with the developer.
The City of La Porte Board of Public Works and Safety on Oct. 7 accepted a bid from Park Street Community LLC to purchase the Beachwood Lakes property for $1,870,000 and approved the sale to move toward closing.
The bid, described at the meeting as “option A,” was accepted in conjunction with a development agreement previously approved by this body and the city council. The city said the minimum bid, set as the average of two appraisals, was $1,865,000; the accepted offer was slightly above that figure.
City staff recommended option A and summarized differences between the two bid options. As presented, option A involved the developer purchasing the land for $1,870,000 with the city to complete infrastructure envisioned in the plan; option B would have involved a higher purchase price of $2,510,000 but the developer completing roughly 75% of infrastructure costs. Staff said negotiations produced a development agreement tied to option A in which the developer agrees to finance infrastructure and that the developer “absorbs all of the risk of the infrastructure in this scenario.”
“The bid was received from Park Street Community LLC. Option a was a bid of 1,870,000,” city staff said at the meeting.
Board members said the arrangement — in which the developer finances infrastructure rather than the city issuing direct cash for those costs — is better for the city because it avoids additional municipal debt and places infrastructure risk with the developer. A board member also noted the property had been on the market for several years and that the accepted figure was in line with recent reductions in asking price.
A motion to accept the bid and proceed with closing passed. The board did not identify a mover and seconder in the record; the motion was approved during roll-call approval as recorded at the meeting.
The approval completes the board’s administrative step to award the bid; closing and specific implementation steps will follow under the previously approved development agreement.
