Opelika CRA approves $3 million purchase of downtown parcels, amends budget to fund acquisitions

The Opelika Community Redevelopment Agency voted unanimously on Wednesday, Jan. 22, 2025, to authorize the executive director to buy a group of downtown parcels for $3,000,000 and to amend the agency's fiscal-year operating and tax-increment budget to fund the purchase.

The purchase resolution covers a property listed in the meeting record as 240 Baumann (variously referenced in the transcript as “Bayman” or “Bahman”) and four associated parcels; the director read the other addresses into the record as 861 Salit Street, 241 Opelika Boulevard and 291 Opelika Boulevard. Agency staff said negotiations began in November and the seller’s original asking price was $3,800,000; the CRA’s appraisal came in at $3,000,000, which the agency offered and accepted.

Board chair Russell called for the motion to authorize the director and CRA attorney to complete title work and closing; the motion was moved by Board Member Kelly and seconded by Board Member Santiago. The board voted 7–0 to approve the purchase resolution.

Why it matters: CRA members said owning the properties gives the agency control over downtown redevelopment near city hall and park space, and reduces the risk of an outside buyer placing an undesirable use on the site. The director and several board members said the agency intends the parcels to be part of future housing or mixed-use redevelopment in the CRA district.

Key details and timeline

- Purchase price and appraisal: The seller initially asked $3,800,000; the CRA negotiated the price to $3,000,000 and said an appraisal matched that figure. - Parcels included: 240 Baumann (address in the record; also referred to as Bayman/Bahman), 861 Salit Street, 241 Opelika Boulevard, 291 Opelika Boulevard. - Closing timeline: staff told the board they expect to close on the purchase within about two weeks. - Tenants and occupancy: Staff said the only confirmed remaining tenant is a daycare; the presence of a church in the buildings was discussed repeatedly in the meeting, with staff indicating they had not negotiated directly with a church but would address occupancy and any lease termination timelines before or after closing. The director said he would consider a six-month grace period for occupants and would return to the board with a recommended timetable and any required negotiations.

Budget amendment

The board also unanimously approved a separate resolution to amend the CRA’s general operating and tax increment fund budget for the fiscal year beginning Oct. 1, 2024, to cover the cost of the purchase and related closings. The director said the agency will spend about $4,600,000 in the next two weeks to acquire two downtown properties (one described as the Bennett building and the other the parcel above). To assemble that funding, staff proposed reassigning amounts from several line items, including:

- Home improvement assistance program: originally $500,000; reduced by $250,000. - Homeownership/rental assistance: $200,000 removed (wiped out in the short term). - Other contractual services: reduced by $216,000. - Development assistance: reduced by $800,000. - Housing initiatives: $270,000 reduced (director noted this set-aside is statutorily required but said it could be counted toward housing if the purchased lots are ultimately used for housing). - Parks improvement: $250,000 removed from the current plan. - Green project: $300,000 originally allocated; reduced by $150,000.

The director said the reallocation increases the building-purchase line item to $5,018,326 to cover purchases and closing costs. He also said the CRA could pursue a short-term loan (he had discussed a bank offering up to $2.5 million), but several board members said they do not favor borrowing and prefer to use existing funds if possible. Board members asked staff to return with a plan for replenishing programs that were reduced and to provide clearer timelines for tenant negotiations and redevelopment plans.

Board comment highlights

- Board Member Kelly said owning the property is the first step to controlling downtown outcomes and supported moving forward now to avoid losing the sites to other buyers. - Board Member Irvin voiced concern about the timing and speed of the purchase and emphasized that contract terms should be “black and white” regarding any occupants who remain after sale. - Several members suggested staff return with photos and more specific plans after closing; the director agreed to bring recommendations back to the board.

Votes at a glance

- Resolution authorizing purchase of parcels (as read into the record): Moved by Board Member Kelly; seconded by Board Member Santiago; vote 7–0 (approved). - Resolution amending FY2025 CRA budget to fund the purchase: Moved by Board Member Taylor; seconded by Board Member Kelly; vote 7–0 (approved).

What’s next: The director said he expects closings within roughly two weeks and will return to the board with recommended timelines for tenant negotiations, occupancy, and redevelopment options. The board directed staff to make contract terms explicit and to report back on plans to restore or reallocate funding for programs reduced by the budget amendment.