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Council approves purchase of 1225 S. Commercial with CDBG funds amid debate over limits and lost tax revenue
Summary
The council approved acquiring 1225 South Commercial Street for $100,000 using CDBG funds despite objections about restrictions on future development and concerns over lost tax revenue from city‑owned parcels.
The Common Council on Sept. 17 approved a recommendation to acquire 1225 South Commercial Street at the accepted offer price of $100,000, using Community Development Block Grant (CDBG) funds as authorized by the council.
The motion, moved by Alderman Steiner and seconded by Alderman Ellis, passed 8–1 after council members debated whether CDBG‑funded land limits future uses and whether the city should continue acquiring parcels that produce little tax revenue.
Alderman Paul said he opposed using CDBG dollars for property purchase and warned about the revenue effect. “This parcel, it's $1,200 annual taxes. Take that off the levy,” he said, and noted the city owns “$1,670,000 of parcels currently that collect $0 in tax revenue.”
Director Nyforth explained federal requirements tied to CDBG funding and described options for future developers: “A developer could develop low income on it, and we could sell it to them for a dollar. Or if they wanted to build market rate apartments or a business, they would just have to pay fair market value.”
Supporters said acquiring the parcel makes the South Commercial corridor more attractive to developers and can remove obsolete buildings that deter investment. Multiple council members referred to long‑term redevelopment goals for the corridor and past successful uses of similar tools.
Council approved the acquisition; council members asked staff to continue due diligence, including environmental review and development outreach, before committing to a developer or further uses for the parcel.
