Keizer council authorizes nonbinding letter of intent for sale of Keizer Station Area C1

Keizer — The Keizer City Council on Feb. 17 voted to authorize the city manager to sign a nonbinding letter of intent (LOI) with a developer identified in the meeting as US Market for multiple lots in Keizer Station Area C‑1.

City staff said the parcels in question form the larger triangle bounded by Lockhaven, Chemawa and McCloud and total 3.58 acres. Staff stated a reported selling price of $4.6 million for the tract and said the city owns just over half the property, meaning the city’s share would be about $2.3 million after closing. The prospective buyer has offered $250,000 in earnest money in escrow and asked for an expedited 120‑day closing timeline.

City Attorney Mr. Lindsey and staff emphasized the LOI is nonbinding and that any sale will be followed by a purchase‑and‑sale agreement and public hearings as part of a master‑planning and quasi‑judicial land‑use process. "A letter of intent doesn't ... isn’t binding, but it gives the intention of the parties to go forward in good faith," Lindsey said, noting the planning commission and council will later hear the land‑use recommendations.

Councilors asked whether the master plan would be complete before council action; staff answered that master planning and the land‑use process will be driven by the developer and that planning commission will act as a recommending body for council consideration.

Council moved and seconded a resolution authorizing the city manager to sign the LOI; the motion passed unanimously with two members absent.

Next steps: staff will return with a purchase‑and‑sale agreement and a public hearing during the master‑planning and land‑use review process.