Homestead City Council on the motion of Vice mayor Bailey extended the city’s due-diligence period for a proposed purchase of 406 Washington Avenue through Feb. 27 to allow a Phase 2 environmental investigation and a third appraisal, after receiving a delayed Phase 1 report earlier in the meeting.

Staff had presented a resolution authorizing a purchase and a note not to exceed $1,666,812 to secure the loan for the acquisition; the Community Redevelopment Agency (CRA) staff were also proposing a $1,000,000 CRA contribution toward the down payment. City staff said Phase 1 environmental testing had been delivered that day; council members said they had not had sufficient time to analyze the 1,000-page report.

Councilwoman (speaker 10) moved to terminate the contract during the due-diligence period, saying the uncertainties around mitigation costs made the purchase irresponsible; Councilman Roth seconded. On roll call the motion to terminate failed. The council then debated whether to extend only for environmental work or to extend a full due-diligence period that preserves the city’s right to walk away. Legal counsel and staff recommended an extension that mirrors the contract due-diligence protections and adds a minimum review period once new materials arrive.

Vice mayor Bailey moved to extend due diligence through Feb. 27, to authorize Phase 2 sampling if warranted, and to obtain a third appraisal. The motion included authorization for the city manager to execute a contract amendment and a provision that if the seller would not execute the extension the contract would terminate. On roll call the extension motion carried.

Council also voted to defer the companion agenda item authorizing issuance of debt and the related CRA item until staff returns with the full package and appraisal and after Phase 2 results. Several council members pressed for an automatic minimum review window (three weeks was discussed) once Phase 2 or the appraisal is delivered so members have time to evaluate mitigation cost estimates and consultant findings before a final vote.