Council discusses proposed $1 sale of contaminated Low Street parcel to local business

Allegan — Representatives of Tenderic Properties asked council for preliminary support to purchase a city‑owned, historically contaminated parcel on Low Street for $1 to build privately funded storage facilities in the future. The parcel has known contamination from historic railroad fuel tanks; staff described benzene contamination and said previous owners had returned similar parcels to the city and required vapor barriers for residential uses.

The Tenderic representative said their business needs additional long‑term storage and that the contamination levels were manageable for their non‑residential use. Councilmembers pressed for additional information: market value of the land, expected tax revenue if developed, the likely costs of remediation or mitigation, and precedent for selling parcels at nominal prices. Joel noted the city has previously sold difficult‑to‑develop parcels for nominal amounts when that approach produced redevelopment (for example a prior sale that led to apartments and retail at 136 Brady). Council requested staff provide market valuation, tax‑revenue estimates and further environmental details before any formal motion or sale.

No sale was authorized on Feb. 10; council asked staff to return with the requested analyses and to clarify how the potential sale would interface with brownfield or other remediation options.