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Council approves sale of Krebs Brewery property; majority of proceeds to repay CDBG award
Summary
Council authorized city manager to approve sale of Krebs Brewery property to current operator Zach Pritchard for a contract total of $562,600; most of the proceeds repay a previously awarded Community Development Block Grant (CDBG).
The McAlester City Council approved a motion to allow the city manager to complete the sale of the Krebs Brewery property to the current operator, Zach Pritchard. Staff said the original lease tied to a 2016 Community Development Block Grant allowed the lessee to exercise an option to buy the property; exercising the option early triggers repayment of a portion of the CDBG award. City staff coordinated with the Department of Commerce to determine the repayment amount.
Staff reported the sale price used for grant repayment purposes is $562,500; in addition the lease exercise payment is $100, for a combined transaction amount referenced in discussion as $562,500 plus the $100 exercise payment. Staff also said a portion of the property will be retained by the city after a current survey is completed so the city “will not lose control” over a small parcel.
Councilors noted the majority of the sale proceeds will be used to pay back the block grant; the city’s direct receipt from the sale will be limited to the $100 option exercise payment, per the CDBG repayment arrangement. Staff said allowing the purchase lets the brewery expand, including adding a new product line and potential new jobs.
The motion to approve was adopted on a roll-call vote with all members recorded as "Yes."
