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Officials outline Proximity Park history, economics and confidentiality as land sale advances
Summary
City attorney and staff recounted Proximity Park’s multi-decade development, explained why public sale price differs from private-market expectations, described the role of confidentiality in industrial recruitment, and noted the half‑cent sales tax that funded infrastructure will sunset in June 2026.
City officials used an extended April 16 discussion to explain the history of the Proximity Park development, the economics of selling public land for private development and the role of confidentiality in recruiting major employers.
City Attorney Finch summarized the site's history dating back to a series of land-evaluation efforts that followed Hills Pet Nutrition’s decision to locate elsewhere. Finch said Ottawa and Franklin County negotiated voluntary purchases to assemble the park rather than use eminent domain and that the city and county funded utilities and roads through bond proceeds supported by a special half‑cent sales tax approved by voters in 2015 and adopted in 2016. Finch said the combined all-in cost for the Proximity Park infrastructure was about $31.3 million and that the sale of an initial 300 acres was expected at roughly $5 million. He described the sale as an investment: the park’s buildout would generate construction spending and long-term property taxes that the city expects would recover and exceed upfront spending. Finch said projected property-tax revenue if the project built out could total $10–12 million over the first 10 years, with long-term property-tax receipts later estimated at $7–8 million per year (city share roughly $2 million annually).
Finch and other officials described past prospect activity for the site. They said Kubota visited Ottawa in 2014 and named Ottawa among finalists but ultimately selected a site closer to a rail intermodal. Finch also recounted Hills Pet Nutrition’s review and how the landowner declined to sell, moving that investment to another community. Officials said these earlier prospects showed the strategic importance of securing developable land and utilities in order to compete for industrial projects.
City staff and the commission explained the recruitment and selection process for large industrial prospects: firms narrow site lists through site selectors and consultants, confidentiality and nondisclosure agreements are common, and formal negotiations typically occur late in the process. City staff and the attorney explained that development contracts often include a lengthy due‑diligence or executory period; at the meeting staff provided approximate timing references, saying a 180‑day period would run to about June 18 and a 270‑day period to roughly September 11 in the present case.
Commissioners and staff also discussed the half‑cent sales tax used to fund Proximity Park infrastructure. Finch said the special-purpose tax began in 2016 and is scheduled to sunset in June 2026. Finch said the sales tax also helped match a $5 million state grant and that about one‑third of the sales-tax burden is borne by nonresidents who purchase in the city.
Commissioners emphasized that decisions about buyers and incentives are not made lightly and called for frequent public information. Staff said they have posted an initial press release and FAQs on the city website and plan to update the FAQ; officials encouraged staff to repost factual material to counter misinformation on social media.
