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Council tables proposed purchase of Sims Road parcel amid appraisal and remediation questions
Summary
A proposed acquisition of a roughly 1.8-acre parcel on Sims Road was discussed at length; councilors raised concerns about septic replacement, propane tanks, water/sewer costs and appraisal; the resolution was tabled for further homework.
The East Bethel City Council discussed a potential Economic Development Authority (EDA)-recommended purchase of a commercial parcel at the Highway 65/Sims Road quadrant during its July 28 meeting, then voted to table action pending more information on appraisal, septic remediation and other site-preparation costs.
Staff told the council the EDA had directed them to negotiate on a property initially discussed as 1347 Sims Road (the draft resolution introduced council referenced 1345 Sims Road), describing roughly 1.83 acres on the northwest corner of Highway 65 south of MC’s Garage. Staff said the seller had reduced the asking price by $25,000 to account for a failing septic system; the original asking price had been $260,000 and the tax-assessed value noted in discussion was about $240,000.
Council members pressed staff on several unknown costs that would affect the parcel’s utility and marketability: the presence and condition of in‑ground propane tanks, potential demolition and disposal costs for an existing house, septic remediation (staff said three estimates placed septic repair as high as $25,000), environmental testing (phase 1/phase 2), and the need for water and sewer infrastructure if the city’s proposed water-treatment project does not proceed. Staff described the parcel as currently zoned commercial but with a grandfathered residential structure on site.
A councilmember asked whether a public hearing was required for the proposed purchase; the city attorney, Jacob, replied no. The motion to approve Resolution No. 2025-45 authorizing the purchase was introduced, then amended on the floor to make the purchase contingent on an appraisal that met the purchase price. Later in the meeting, councilmembers expressed concerns that appraisal, tank remediation and pad-preparation costs remained unknown and that the pending regional water project — which would reduce site-readiness costs if approved — had no guarantee of funding.
After additional discussion and a staff commitment to gather cost estimates for demolition, tank removal and environmental work, the original motion was rescinded and a motion to table the resolution to the next meeting passed on a voice vote.
Why it matters: staff and some council members see the corner parcel as a strategic investment should regional water and sewer funding materialize; others cautioned against spending taxpayer dollars without clearer estimates and an appraisal that supports the purchase price.
Next steps: staff said they would obtain an appraisal, collect estimates for septic/tank removal and environmental work, and return with the information at the next council meeting.
