Board reviews nonbinding letter of intent for sale of stormwater building at 5175 Murfreesboro Road

City staff presented a proposed nonbinding letter of intent to sell the property at 5175 Murfreesboro Road (the stormwater codes building) at the Jan. 30 workshop, disclosing a proposed purchase price that matches the most recent appraisal and prompting board members to request updated valuation information.

Staff said the board previously authorized negotiations for the property and that Grinsley Holding / ZRC PropCo LLC proposed a purchase price of $1,050,000. "The last appraised appraisal on this property was a 1,050,000 and the proposed purchase price is a $1,050,000," a staff member said. The board discussed whether to require a new appraisal; one alderman requested a fresh appraisal because the appraisal on file dated to December 2023.

Kyle (city staff) said ordering a new appraisal would take at least 60 days and cost in the range of several thousand dollars (he indicated about $3,000–$4,000 based on prior practice). Staff said the purchase agreement includes a due-diligence period (discussed as potentially up to 13 months) and that the buyer had indicated a desire to move quickly, including negotiations with adjacent property owners about a small parcel.

Board members asked about prior interest in the site and whether delays had affected past prospects; staff said earlier offers had been below the current proposed price and that the city had previously negotiated with other potential developers. Staff emphasized that the comptroller’s office typically requires justification if property is sold below the last appraisal.

No final sale decision was made at the workshop; staff said they have authority to negotiate and will present any final agreement for formal board action per the city’s procurement and asset-disposal procedures.