The Diversion Authority Land Management Committee on July 23 directed staff to meet with adjacent property owners and attempt a two‑step sale of a disputed section of the Horace rail corridor, known in committee materials as OAN7249. The committee approved a staff recommendation to seek either (1) sale of the northern half divided into the 11 previously planned lots at the established rate of $0.50 per square foot with 10% earnest money, and to retain the southern half in agency ownership; or (2) if the north buyers decline, to move the entire corridor segment to public sale.

Why it matters: The corridor has been a recurring item for the committee since April 2024. Adjacent owners on the north side have expressed interest but not at a reduced price; one prospective south buyer withdrew. Committee members said keeping the south half while confirming the north buyers is the cleanest path and protects the project from creating inaccessible fragments of land.

Staff summary and options: Eric (staff member, Lands) told the committee the parcel had been platted for sale into 12 chunks (one south parcel and 11 north parcels), plat approval had been obtained from the City of Horace, railroad ballast and contaminated soils were removed with clearance from the Department of Environmental Quality, and most adjacent north property owners previously agreed to buy at $0.50 per square foot. One south buyer withdrew. Staff recommended meeting with the north owners and presenting two options: proceed with the north half sale (requiring 10% earnest money to cover replat and closing work) and move the south half into public sale, or, if the north owners decline, proceed to public sale for the entire corridor.

Committee discussion: Commissioners questioned whether the two halves differ materially. Eric said the corridor geometry is similar on both sides but land use differs: the north side adjoins residential yards and some small encroachments; the south adjoins tillable farmland. Commissioners debated whether to require earnest money; some worried an earnest-money requirement might chill buyers who had previously agreed to purchase. Staff clarified that any earnest money would be credited to the purchase price, not an extra fee.

Outcome and next steps: The committee approved a motion to follow staff’s recommendation to meet with north‑side landowners and pursue the two‑step option, holding the south half in agency ownership while the north‑side purchases are confirmed. If one or more north buyers back out, the committee directed staff to return with results before unilaterally moving the entire section to public sale. Eric said staff has proposed early‑August dates to meet with owners.

Context and background: The committee noted that other sections of the rail corridor have been sold previously at $0.50 per square foot to adjacent residential owners; the corridor had been acquired earlier at higher commercial prices from the railroad. The committee also discussed access: gravel roads at the east and west ends provide maintenance access even if the agency retains the southern half.

Ending: The committee asked staff to report back after meetings with the north landowners and to return to the committee if any buyer withdraws, at which point the committee may authorize public sale.