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Commission approves $5,000 offer for 608 Rose Street with amended listing-and-rental conditions
Summary
The commission approved a staff-recommended sale of city-owned 608 Rose Street to a private developer for $5,000 cash plus a $5,000 deposit, adding an amendment that lets the buyer rent the unit if it remains unsold after a 180-day listing period while requiring the property stay listed for a year.
The Economic and Community Development Commission approved an offer to purchase 608 Rose Street on March 26, authorizing sale under a development agreement that includes price caps, a conditional rental option and buyer performance checks.
City staff said the City acquired the parcel for $10,000 after environmental review and spent additional funds (staff stated "we had 30,000 into it altogether") related to its fire-damaged condition. The purchaser is developer Steve Schlicht, who proposed building a townhome (one unit on the parcel, zero lot line). Schlicht's offer to purchase is $5,000 cash with an additional $5,000 good-faith deposit that could be returned in whole or part if he develops according to the city's development agreement and meets energy standards.
Staff said Schlicht intends to sell both sides as owner-occupied units but requested the option to rent the property if it cannot be sold. Staff initially proposed a 90-day sales listing before a rental option would be allowed. Commissioners debated the listing period and amended staff's recommendation during the meeting. The approved amendment allows the buyer to convert to rental after 180 days on the market but requires that the unit remain listed for sale for a full year. The commission noted the buyer's preference not to be a landlord, and staff said the buyer set sale maximums of $195,000 and a potential rent cap of $1,200 per month.
Commissioner Markerson raised concerns about the sale price relative to the parcel's assessed land value; staff later confirmed the land assessment in the staff report as $145,000. The motion to approve the offer (including the 180-day/one-year listing amendment) passed unanimously.
Staff said the city's financial investment in the parcel included the initial $10,000 purchase; staff stated they had about $30,000 additional into the property for demolition/repairs, but did not provide a consolidated final figure at the meeting. The development agreement requires staff inspections to confirm compliance with city standards before any deposit return or final approval.
