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Council authorizes counteroffer for vacant lot at 115 S. M. Street after housing debate
Summary
After discussing competing development interest and assessed value, the Oskaloosa City Council voted to make a counteroffer on the unsolicited $2,500 purchase offer for a vacant city lot at 115 South M Street, with council members seeking assurances the lot will be developed as housing.
The Oskaloosa City Council moved to authorize a counteroffer on the unsolicited purchase offer for vacant city-owned property at 115 South M Street after debate over whether to accept the $2,500 offer, reject it and rebid, or negotiate for a higher price tied to housing development requirements.
The council heard staff background that the property, acquired by the city via a tax-sale certificate in 2023, is 0.38 acres (123 by 136 feet), has an assessed value of $14,280 and was cleared following a 2016 demolition that cost the city $11,900. Staff said the current unsolicited offer from Virginia Zahn was for $2,500 with a $200 deposit; staff recommended rejecting that offer and advertising the lot to solicit proposals that could produce more housing units.
Council members weighing the options questioned how many additional bidders might materialize and how quickly the lot could be developed. Some argued the unsolicited offer represented a reasonable start for a new single-family home; others favored holding out for larger multi-unit development. A proposal to reject the $2,500 offer failed; the council then voted to direct staff to make a counteroffer and to include conditions discussed by the council, including a requirement the purchaser build on the lot within an agreed period and potential restrictions on eligibility for local tax abatement programs.
The motion to issue a counteroffer passed by roll call. Councilmembers said the counter strategy would allow negotiations to continue while retaining the option to advertise for bids if a larger development opportunity emerged.
Ending: Staff will prepare the counteroffer terms and negotiate with the prospective buyer; the council asked staff to explore whether a sale could include conditions that the property be developed as housing and to document any limits on tax abatement eligibility in a purchase agreement.
