Commission consents to assignment of AM General-era ground lease, approves steps to appraise 25.9-acre parking parcel

The redevelopment commission approved a consent to assignment of a ground lease and authorized appraisal work after the commission was notified that GEM (Global Emerging Markets) has acquired rights related to the AM General/GM facility and seeks to exercise an option to purchase the leased 25.9-acre parcel used as parking and storage.

Staff explained the parcel was acquired by the commission around 2001, aggregated to 25.9 acres and leased to parties using the H2 facility; the lease produces approximately $71,000 annually for the commission. Under Article XXII of the ground lease, the leaseholder has an option to purchase the property; staff said any appraisal for sale pricing must value the parcel as bare ground (improvements historically made by AM General/GM are excluded under the contract).

The commission approved Resolution 2025-08 consenting to assignment of the lease to GEM/JEM and then voted to accept the exercise of the option to purchase, which initiates appraisal and sale procedures. The commission approved two professional service proposals for appraisals: Steve Santee (proposal cited at $1,800; staff noted both parties pay share when required) and Iverson Grove ($2,000). Commissioners discussed whether to retain the parcel as a revenue-producing lease but were told the option exercise starts a contractual sale process that requires appraisals and subsequent steps.

Staff said future steps will include appraisals, a negotiated sale process consistent with the lease terms and reporting back to the commission on appraisal results and sale offers.