Holmes County accepts revised Deacon Road offer, starts annexation to speed sewer access

Holmes County commissioners voted to accept a revised offer on county-owned land along Deacon Road and authorized staff to begin the annexation process into the City of Bonifay to help secure sewer service for the site.

The action, approved by voice vote after discussion, sets a 90‑day due‑diligence period that the county said will begin the day the buyer is notified and establishes a closing date on or before June 30. County staff described the change as an effort to replace an earlier offer that contained an open-ended sewer contingency and a 120‑day inspection window.

County staff member Mike, who presented the update, said he reworked the sale documents after meeting with city officials and representatives from Opportunity Florida to clarify how quickly sewer could reach the property. "I would notify mister Zuppa today that 90 day clock will start ticking tomorrow," Mike said. He told the commission the prospective buyer indicated he would use proceeds from another sale rather than bank financing.

Why it matters: County officials said earlier versions of the offer left the sale open to indefinite delay if sewer availability could not be confirmed during a long inspection period. Commissioners and staff said faster confirmation of sewer service would allow the buyer to build smaller lots and a larger number of homes than would be possible using septic systems, increasing the project's potential economic impact in the county.

What commissioners authorized and how it would work - The commission accepted the revised offer terms reported by county staff: a 90‑day due‑diligence/inspection period and a target closing on or before June 30. County staff said the buyer agreed to remove the earlier open-ended sewer contingency and to move those conditions into the 90‑day inspection window. - Commissioners also authorized starting the legal process to annex the Deacon Road parcel into the City of Bonifay, provided the annexation imposes no cost to the county while the county still holds title and that the city would consider waiving city ad valorem taxes until ownership changes.

Possible funding for sewer extension and timing County staff said the city would apply for grant funds to extend sewer lines in the new fiscal year and that the city and Opportunity Florida were exploring whether a bridge loan — potentially through PowerSouth/West Florida Electric or similar mechanisms — could be used so sewer work could begin before grant funds arrive. City officials and Opportunity Florida representatives told staff they expected to have clearer answers by the end of the week, the county presentation said.

Concerns and legal questions Some commissioners raised concerns that initiating annexation after the parcel had been advertised and bid could change the scope of the property and potentially disadvantage bidders who lacked the later information about sewer availability. One commissioner asked whether the county could be exposed to legal challenge; county counsel (Nate) was asked to confirm legal permissibility during the discussion. County staff said the property had been bid twice and noted that any party could have bid; staff recommended proceeding.

Projected development and deal structure Staff described the buyer's plan as likely to allow more and smaller lots if sewer were available; staff gave an example that the road-front portion alone could yield about 20 homes under those conditions and cited broader project estimates discussed in the meeting that reached higher totals if full sewer service is built out. Presenters said the prospective buyer indicated use of a 1031 exchange to fund the purchase rather than traditional financing.

Outcome and next steps The motion to accept the revised offer and begin annexation was seconded and approved by voice vote; no roll-call tally was recorded in the minutes. County staff said the commission should know within the 90‑day inspection window whether the buyer will proceed. If the sewer plan or bridge financing cannot be secured, staff said the sale could fall through and the county could rebid the property.

"I couldn't find anybody that would be losing in this deal," Mike said in support of the recommended approach, while acknowledging there is no guarantee a real estate transaction will close until funds change hands.

The county expects a city update on sewer feasibility by the end of the week; staff will return to the commission if the buyer does not proceed at the end of the 90‑day period.