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City details Munson property appraisal, warns developers of high water table and infrastructure costs
Summary
Sunnyside staff told council the 44-acre Munson property is marketed as a planned unit development but faces development barriers including a high water table, nearby feedlot, and costly street and lift-station work; staff reported an appraisal of $3 million and said the city still owes about $800,000 on the parcel.
Sunnyside City Manager and staff briefed the City Council on the status of the 44-acre Munson parcel on Monday, citing developer interest but also significant infrastructure and site constraints that have limited offers.
Lede: The city reported a professional appraisal of $3 million for the Munson property and said it currently carries debt of roughly $800,000; staff said the parcel’s high water table, nearby feedlot and the need for extensive road and utility work make development costly for private buyers.
Nut graf: The council heard that the Munson property is zoned as a planned unit development (PUD) and is flexible for residential, commercial or mixed uses, but developers have flagged expensive site preparation — including over-excavation and a likely new lift station — as impediments to purchase and build.
Details from staff City Manager Mike said CBRE prepared a professional appraisal that arrived in council packets on April 6; the appraisal value was $3,000,000 and the property is listed for $3.6 million. ‘‘It’s a 44 acres,’’ the manager said, noting multiple showings and inquiries that staff judged serious. He added the city still owes close to $800,000 on the parcel.
Economic development staff explained technical hurdles: the water table is shallow in places and developers must over-excavate trenches and bring in bedding material; roadway work along Yakima Valley Highway could require curb, gutter, sidewalk and lighting for about a mile of frontage; a lift station near the property’s southeast corner was estimated to cost about $1 million. Those extra costs, staff warned, reduce the number of buyers willing to pay full appraisal.
Staff said they have discussed alternatives with developers: parceling the land for phased development, seeking strategic private partners, and pursuing energy-company or port partnerships to bring power to the site if a data center were interested. The manager said a data center remains a possibility but would require significant energy delivery work.
Why it matters: The Munson property is a large holding within city limits; selling and developing it would add tax base and jobs, but the city must balance price expectations with realistic development costs.
Council response and next steps Councilors asked for more detailed cost estimates and for continued targeted outreach to serious developers. Staff said they will present a fuller marketing package, comparables and any discussions with potential data-center and energy partners at a future meeting that will include the property’s marketing materials and appraisal.
Ending No sale or formal offer was approved at the meeting; staff will return with a fuller presentation and recommendations in a later meeting where council may consider price adjustments or incentive strategies.
