Council approves redevelopment purchase of Gateway Properties site for about $800,000

At the Dec. 4 Common Council meeting, the council approved a resolution authorizing the Redevelopment Authority of the City of Superior to acquire blighted property from Gateway Properties Inc. for industrial redevelopment and approved a cooperation agreement with the Redevelopment Authority.

Redevelopment Director Jason Serp told the council the city negotiated a purchase price of about $800,000 for the parcel on Conners Point, and that the city's appraisal was higher than the seller's appraisal. Serp said the city will pay the seller's 2012 taxes, about $6,000, as part of the closing and that a title commitment shows clear title.

The measure matters because the property adds industrially zoned land already served by utilities and roadways and gives the city control to market the site to growing local manufacturers and marine-related businesses. Serp cited existing and potential local expansions, including a business named Exodus, which has purchased neighboring property and discussed further expansion, and interest from marine-industry firms and engineers.

Serp, identified in council discussion as Director of Redevelopment, said the negotiated price is "about $800,000" and that the seller, Donald Bergholm, formerly of Torburg, had worked with the city and was ready to sell. "Our appraisal was actually significantly higher than that and his appraisal came in around that, so I do believe that this is a very fair and negotiated settlement," Serp said.

When Councilor McKenzie asked whether specific businesses were expanding, Serp cited Exodus and discussions with marine-industry prospects and engineers at AMI. Serp warned that marketing and development are not immediate but said control of the property lets the city market it more professionally and pursue prospects.

Council members voted on the resolution by voice; the chair called for "all in favor" and the motion carried. The council approved the Redevelopment Authority's report and the purchase agreement with Gateway Properties Inc. Serp said staff planned to close before the end of the year to begin marketing the property.

Council discussion also clarified there are no back taxes outstanding on the property aside from the 2012 taxes to be paid at closing. Serp said the seller had paid cash when he purchased the parcel and that the city had a title commitment in hand.

No specific redevelopment plan, incentive package, or schedule of capital improvements was authorized at the meeting; the resolution approves acquisition authority and the cooperation agreement and directs staff to proceed with closing and marketing.