The Flagstaff City Council on March 5 approved staff’s recommendation to reject a low bid for two city-owned parcels near Doney (Doney) Park and to retain the parcels as assets of the city’s self‑insured trust fund.
City attorney’s office representative Anya Wendell presented background: the city holds two remnant parcels from a larger sale in the 1990s — one about 9 acres and the other about 12.5 acres, both located in the county and zoned rural agricultural (with a minimum parcel size of roughly 2.5 acres). Wendell said the parcels are held as assets of the city’s self-insured trust fund, and proceeds from any sale are returned to that trust.
Wendell said a 2022 solicitation produced a single bid equal to roughly 15% of fair-market value. Older appraisals discussed in staff materials put the 12.5-acre parcel near $600,000 and the 9-acre parcel near $300,000, giving an approximate combined appraisal near $900,000; staff also referenced the city’s hoped-for return to the trust of roughly $1,126,000 as an initial investment figure tied to the parcels.
Staff told the council the parcels are unlikely to be feasible for affordable housing development because of county zoning constraints and utility/septic limitations. Wendell noted the parcels are connected to Doney Park water but rely on septic systems and would require substantial development investment.
Council approved staff’s recommendation (to reject the bid and proceed with staff options outlined in the agenda packet) by motion and recorded voice vote.
What to watch for: Staff said any future disposition must consider zoning, septic and utility constraints and the council’s adopted resolution that requires staff to assess whether city-owned land being disposed is suitable for affordable housing.