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Council defers decision on two downtown property purchase agreements to July 1
Summary
The City Council heard presentations on two potential downtown property purchases — 7015–7025 Douglas Avenue (former Big Sky Bridal and adjacent parcels) and a 14,000-square-foot S & C Auto rear lot — and voted to defer action to the July 1 meeting amid questions about timing relative to the Downtown Urbandale master plan.
Aaron, a city staff member, presented two potential purchase agreements tied to downtown master-plan objectives: (1) 7015–7025 Douglas Avenue (the former Big Sky Bridal/Jerry Green building, two buildings totaling about 5,800 square feet plus a back parking area) for a negotiated purchase price of $850,000; and (2) an estimated 14,000-square-foot rear parking lot behind S & C Auto at $6.50 per square foot (approximately $91,000 at the estimated size). Karen DeYoung, the city's economic development director, was present with the presentation materials.
Aaron said the city would assume existing leases on the Douglas Avenue property and identified due diligence items including an environmental assessment (auto and dry-cleaner uses on site can pose contamination risk), a building inspection, lease review and a commercial appraisal. The Douglas property acquisition study period was described as ending August 15 with closing thereafter; the Douglas purchase includes a $20,000 earnest deposit. The S & C Auto lot due-diligence period would end September 15 with a later closing; staff noted the 14,000-square-foot figure is an estimate pending a plat/survey.
Several council members voiced concern about approving purchase agreements before the Council's anticipated vote to adopt the Downtown Urbandale master plan. Council members asked whether the city could withdraw from the contracts during the due-diligence period and whether the master-plan approval should be an explicit contractual condition. City legal counsel (Maria) advised the existing agreements provide exit options tied to the acquisition study outcomes (environmental, appraisal, inspections, lease reviews), but she did not identify an express contractual condition making master-plan approval itself an automatic termination trigger; she said she could provide a more detailed opinion with additional time.
After extended discussion about negotiation risk and timing, Council Member Carberry Montgomery moved (seconded by Bode) to defer action on both purchase agreements to the July 1 meeting. The motion passed. Staff warned that a deferral could require renegotiation of due-diligence dates with the sellers and might re-open some terms depending on sellers' positions. No purchase closed at the meeting.
