Single bid for Deacon Road property prompts commissioners to seek clarification on contingencies and timing

The Holmes County Board received one bid for county-owned land near Deacon Road and voted to ask the county realtor to seek clarification and an extension from the bidder before the commission accepts or rejects the offer.

Broker Mike Alvis told commissioners the single written offer came in at $500,000; the buyer requested payment of closing-document charges ("docs") estimated at $3,500 and the listing broker's fee of 3 percent. Alvis said the offer contains multiple contingencies that make the timing and certainty of payment unclear.

"One contingency is to take 10% of the total land and turn it into commercial [use]," Alvis told the board, and the offer also conditions later phases on "city sewer before the beginning of phase 2." He said the buyer's contract contains a 120-day due-diligence period allowing the buyer to determine, at the buyer's discretion, whether the property is suitable for the intended use.

County discussion focused on whether the county could rely on the sewer contingency, how many homes could realistically be served on the parcel without sewer, and whether the buyer's stated build of "no less than 94 homes" on the remaining acreage is achievable. Commissioners and staff observed that municipal utilities are controlled by the city, county comprehensive-plan and utility-extension policies constrain extending sewer outside city limits, and separate stormwater, road and per-lot septic constraints make the buyer's density assumption uncertain.

After discussion, a commissioner moved that county staff and the listing broker contact the bidder for clarification of the offer terms, request an addendum or extension of the offer deadline (the bidder's offer expires March 19) and return to the board with an update at the next meeting. The motion was seconded and the board voted in favor.

Alvis recommended negotiation to narrow or remove contingencies and to define "phase 1" and "phase 2" in the offer. He also cautioned that county staff's understanding of the cost to extend sewer to the area could be as much as $750,000, and that under the written contingencies the buyer could use the 120-day inspection period to terminate if contingencies were unmet.

County staff said the parcel had been listed on the MLS and that initial problems locating the listing were spelling related; staff provided a copy of the MLS listing date to the commission.

The board did not accept or reject the bid at the meeting; instead it directed staff to seek clarification and a potential extension and to report back at the next regular meeting.