The Policy and Finance Committee on Aug. 21, 2025, approved resolutions to surplus three city-owned parcels and authorized staff to develop requests for proposals (RFPs) and to engage a commercial broker to market the properties.

Deputy City Manager Kofly told the committee the move is part of revenue-generation efforts tied to the current budget shortfall: “we have a budget crisis going on right now,” he said, and staff wants to activate the parcels so they are back on the tax rolls and potentially used for affordable housing or commercial development.

Parcels and key details:
- 400 SE Eighth Ave (large parking lot behind City Hall): Staff estimated a value of $773,007.52; county 2025 assessed value listed as $486,000. The tract is about 2.5 acres. The north portion is owned by Madison Street Apartments and carries a restrictive covenant placed by KHRC that provides parking for that tax-credit project. The parcel is zoned D1; staff recommended retaining zoning for marketing. The committee approved a resolution to declare the tract surplus and to authorize staff to solicit marketing and broker proposals.
- 225 NW Curtis St (riverfront tract): This tract is about 2.4 acres with four buildings; staff estimated value at $600,000 and noted the county’s assessed value at $492,000. The tract was acquired with transient guest tax funds for riverfront park purposes, so any disposal will need conditions to keep uses consistent with those funding restrictions. Staff also flagged environmental issues on this tract. The committee approved disposal and directed staff to include funding restrictions and environmental disclosures in the RFP.
- 204 SW Fifth St (surface parking lot): Acquired in 1972; about 0.68 acres, estimated value $255,000. Staff noted the lot has environmental concerns documented in a Phase I assessment and limited Phase II investigation; those documents will be disclosed during marketing. A portion of the lot is leased month-to-month for parking and staff said tenants will receive notice. The committee approved disposal and authorized marketing steps.

Council direction and process: Staff asked the committee to approve surplus declarations parcel-by-parcel and to authorize RFPs and engagement of a commercial broker to maximize return and align potential uses with city goals. Committee members said they prefer keeping current zoning during marketing so the city retains control over allowable uses; staff said rezoning would require the formal planning process. For the riverfront parcel, committee members requested disclosures regarding the Corps of Engineers’ levee rules and floodplain restrictions.

Votes: The committee approved each resolution to declare the parcels surplus and to authorize marketing steps; each parcel vote was moved, seconded and approved by voice vote at the committee meeting.

Ending: Staff said surplus declarations are the first step; any final sale would require further governing-body approval and will be evaluated against development proposals, site constraints, public-funding restrictions and environmental disclosures before a sale is finalized.