The Finance Committee on Jan. 6 approved a rules substitute and then the sale of the Armory parcel with multiple revised terms: a smaller parcel size, an increased purchase price to reflect repayment of a CDBG amount, a prohibition on sale to tax‑exempt entities, and a three‑year restriction preventing resale except in foreclosure.

Staff explained the transaction will be executed "as is," with environmental remediation the buyer’s responsibility. OED and public works said the buyer anticipates significant remediation costs. Developer Don Patterson of Redevelopment Associates described the overall project as a roughly $30 million redevelopment with about $15 million expected for cleanup and remediation. "It's a $30,000,000 project... half of that's gonna go to a cleanup," Patterson said, and said the project would generate local jobs and an estimated $1 million in annual tax revenue once stabilized.

Council members pressed staff on whether the developer would commit in writing to the capital investment level and whether the city would receive protections if remediation uncovered additional liabilities. OED said there is no written binding minimum capital expenditure but noted the project has been under negotiation since 2020 and that HUD/new market/historic tax credit financing is part of the developer’s plan. Staff and counsel said the purchase and sale agreement includes standard environmental disclaimers, indemnification and release language and that the buyer accepts environmental risk.

The committee approved the substitute and bill as substituted. Members requested follow‑up materials on remediation milestones and documentation of the developer’s financing commitments.

What's next: Sale closes after required steps and the developer secures tax‑credit financing; staff will seek follow‑up reporting on remediation progress and will provide documentation to the council upon request.