Homestead City Council voted to extend the due-diligence period on a proposed acquisition of the Goodyear property at 406 Washington to allow additional environmental testing and appraisal work, after a contentious debate among councilmembers.

Staff reported that phase-1 environmental findings were delivered to the city on the day of the meeting and described the need to move to phase-2 (invasive testing) if the phase-1 timeline and findings warrant it. The proposed purchase price discussed during the meeting ranged in the record from $2.6 million to $2.8 million depending on appraisal interpretation; staff noted that the city would not make the entire payment upfront and that the CRA had a companion item to allocate a $1,000,000 down payment if the acquisition moved forward.

Several councilmembers urged termination of the contract because of the perceived risk and the magnitude of remediation costs for a property used for automotive services for decades. Council members also questioned the timing and provenance of two different valuations in staff materials: a land-only appraisal and a second appraisal valuing the improved site that differed substantially. Sellers and the listing agent told council the property-owner family had deep ties to the community and were willing to extend due diligence to allow a complete review.

After multiple motions, council voted to extend the due-diligence period to Feb. 27, with conditions: the seller must execute an addendum extending due diligence (otherwise the contract terminates), the city will commission a third appraisal, staff will complete phase-2 environmental testing if necessary, and the extension will include a built-in minimum review window (three weeks) after critical deliverables are provided so council can receive and review materials before a final decision. Council also approved deferring the companion CRA item authorizing a $1,000,000 contribution pending this additional work.

What happens next: staff will coordinate phase-2 testing and a third appraisal, return results to council, and the seller must execute the extension addendum by the city's deadline or the contract will be terminated.