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Central council approves purchase agreement for Hooper Road property, sets $30,000 escrow for environmental testing
Summary
The Central City Council on Jan. 28 approved a resolution authorizing the mayor to execute a purchase agreement with Rack Incorporated for a parcel at Hooper Road and Sullivan Road, setting a $30,000 escrow for possible additional environmental testing and discussing DOTD funds for a planned roundabout.
The Central City Council on Jan. 28 approved a resolution authorizing the mayor to sign a purchase agreement with Rack Incorporated for the parcel at the southwest corner of Hooper Road and Sullivan Road.
Council member Laverne introduced the resolution and the council voted by roll call with unanimous yes votes from Frederick, Laverne, Lazaro, McKinney, Meyer, Roy and Wells.
Why it matters: Council and staff said the acquisition is intended to support a planned roundabout and intersection improvements tied to the Sullivan Road project. Council members discussed environmental contingencies and how the city will demonstrate to the Louisiana Department of Transportation and Development (DOTD) that it is committed to building intersection improvements so DOTD will complete the roundabout portion of the project.
City staff described the $30,000 escrow provision and its purpose. Clark Miller, city staff, said, “Terracon recommended a amount of 30,000 be withheld in escrow for any additional testing required.” Miller also said the money would be released to the owner after required testing is complete and that the escrow would likely be managed by the closing attorney.
Council member Laverne emphasized the purchase price and transparency: “Yeah. I would just say for transparency, the purchase price is $760,000.”
Council members and staff described how the DOTD commitment emerged after the city signaled it would acquire the parcel to make the roundabout feasible. Miller told the council DOTD had $17,400,000 allocated for the Sullivan Road widening project; bids came back under $12,000,000, leaving roughly $5,400,000 that DOTD indicated it could commit to the roundabout if the city acquires the property.
On mitigation costs, staff said the city is accounting for known contamination risks. Miller said phase 1 and phase 2 environmental work had been done and that “the estimated mitigation cost of everything is around the $250,000 mark.” He said the $30,000 escrow is strictly for any additional site testing Terracon recommends after remediation. Miller added the council included roughly $50,000–$60,000 in contingency so the city would not need to return to council for small overages.
Votes at a glance: - Resolution authorizing mayor to execute purchase agreement with Rack Incorporated (property at Hooper Rd. & Sullivan Rd.) — Motion to approve by Council member Laverne; second by Council member Meyer; roll call: Frederick Yes; Laverne Yes; Lazaro Yes; McKinney Yes; Meyer Yes; Roy Yes; Wells Yes. Outcome: approved. Notes: $760,000 purchase price; $30,000 escrow recommended by consultant Terracon for additional testing; staff cited an estimated mitigation cost of about $250,000 and a contingency of roughly $50,000–$60,000. DOTD indicated remaining project funds could cover the roundabout if the city acquires the parcel.
Related items on the agenda: Planning and zoning cases were introduced for public hearing on Feb. 25, 2025 (including a conditional use permit for a daycare and a modification to the garden homes designation to allow a gym); those items were not acted on by the council at this meeting and will be heard at the Feb. 25 public hearings.
The council adjourned after routine reports and announcements.
