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Fairview board directs appraisal after owner asks $700,000 for City Center Way lot
Summary
Property owner Jewel English told the Fairview board she will sell 7061 City Center Way for $700,000 cash or hold a 10‑year 5% note tied to a $625,000 offer; the board agreed to order an appraisal and return in 30 days to discuss options.
The Fairview Board of Commissioners asked City Manager Tom Daugherty to order a professional appraisal after property owner Jewel English told the board she would sell 7061 City Center Way for $700,000 in cash or would hold a 10‑year mortgage at 5% tied to an earlier $625,000 letter of intent.
The appraisal direction came after English, speaking from the podium, described an outside buyer’s $650,000 cash offer, the city’s prior nonbinding letter of intent for $625,000 with owner financing for 10 years at 5%, and her counter that a cash sale should be $700,000 because she would lose interest income if she surrendered her plan to hold the note.
An appraisal, the city manager and several commissioners said, is the most practical way to establish a defensible market value before the city spends bond or grant funds. Tom Daugherty, Fairview’s city manager, told the board staff could order an appraisal as soon as the following week; commissioners agreed to reconvene the issue in a work session about 30 days later to review results.
Why it matters: the parcel borders city property near City Hall and is subject to a lease the city previously signed, which the city and owner say contains a first‑right‑of‑refusal provision and other terms that could limit sale or development. Commissioners said the city must ensure it uses bond and grant funds prudently and have an independent valuation before deciding whether to purchase.
Key facts and options discussed: English said she had a $650,000 cash offer from another buyer and previously proposed a $625,000 sale with a 10‑year, 5% note she would hold. After the city learned it needed to use certain grant funds before year‑end, Daugherty told English the city would prefer to pay cash; English said she then asked for $700,000 if the city paid cash. The city’s lease for the site currently charges $300 per month and—according to the lease language discussed at the meeting—includes a right of first refusal that contemplates appraisal if the parties cannot agree on price.
Legal and risk issues: City attorney Patrick (listed in the meeting) said several clauses in the lease were prepared without counsel and raise enforceability concerns; he noted the lease’s lack of escalator and other unusual terms. He also confirmed that owner‑held financing for a public entity would require special permission from the comptroller. Commissioners raised the possibility that missed or late lease payments, which the owner referenced, could affect the lease’s enforceability; the attorney said he had not yet analyzed that claim.
Next steps: the board directed the city manager to order an appraisal for 7061 City Center Way and return with the appraisal and recommendations at a work session in roughly 30 days. Commissioners discussed, but did not approve, any purchase price or financing mechanism during the meeting.
What was not decided: No purchase was authorized, no contract was signed, and English said she may decline to sell if the city does not accept one of her terms. Commissioners repeatedly emphasized they had a nonbinding letter of intent, not a binding contract.
