City Manager presented proposed amendments to the city’s January 2023 land-purchase policy at the Rochester City Council workshop on July 15, 2025, saying the changes would let the city negotiate an option to purchase before the council approves a funding mechanism. “The option would establish a purchase price for the property and clearly state that the parties will only enter into a PNS after the City Council approves the funding mechanism,” the City Manager said.

The changes are intended to address what staff described as a procedural flaw under the current policy, in which a purchase-and-sale (P&S) can be executed before the council publicly approves how the city will pay for the parcel. Under the current policy, the City Manager said, the process begins with nonpublic presentation to council, negotiation of a P&S, a due-diligence period, and then a public vote to appropriate funds. The proposed approach would let staff negotiate and, if appropriate, sign an option to purchase that fixes the purchase price but explicitly conditions signing a P&S on a later public funding approval.

City staff told the council that the option approach would allow public discussion of funding without changing an agreed price, but it could require a seller’s nonrefundable deposit. The City Manager noted that a deposit “introduces a degree of risk to the city if the funding is not ultimately approved,” and said any deposit amount would be negotiated and brought back to council as part of approving the option. Staff said the proposed amendment would not change procedures for projects already approved and funded in the annual budget.

Councilors asked for the written notes and details before the formal amendment is filed. Councilor Sullivan thanked staff for pursuing the change, and Councilor Fotenil asked for the text of the proposed amendments and a chance to review them in writing before the August meeting. The City Manager said staff will bring a formal draft in August and asked whether council expects a motion and vote at the council’s August meeting; councilors indicated they do.

Discussion: staff described procedural risks and the option-to-purchase mechanism; councilors sought written language and time to review. Direction: staff was asked to prepare formal amendment text and circulate notes to councilors ahead of the August meeting. Decision: no ordinance or policy change was adopted at the workshop; staff will return with a formal proposal and potential vote at the August meeting.

Next steps: staff will present a formal draft amendment at an August council meeting and, if council directs, a public vote on any changes will follow.