Council discusses buyback option on Fox and Coop Club parcel sold to 3 Chicks Rental LLC

Staff briefed the council on a development agreement and buyback clause tied to the sale of the former Fox and Coop Club property to 3 Chicks Rental LLC. The developer failed to obtain and submit an approved site plan required by the agreement; staff said the city has a contractual option to repurchase the property within five years of the agreement.

Staff reported the net proceeds from the sale had been kept in a separate fund (approximately $376,000 after costs) and that the purchase closing net was $475,000; staff noted a roughly $100,000 difference after the city’s purchase costs. Council members discussed whether to pursue buyback, noting concerns about developability (rocky subsoil and sewer/water access costs), the assessor’s lower valuation cited by a council member (about $141,000), and potential remediation issues related to lead shot from past shooting use. Some council members suggested alternative uses if repurchased, including tiny homes on wheels or long-term camping adjacent to the campground; others cautioned against repurchasing without a concrete plan and recommended an appraisal or more research.

Staff said the city can commission a commercial appraisal (estimated informally in the discussion at roughly $10,000 but possibly less for vacant land) and that the buyback clause fixes a repurchase price in the contract if the developer is unwilling to sell voluntarily. Council asked staff to research options, costs, and potential uses, and to bring back a recommendation before the contractual buyback window expires.

No purchase decision or vote was taken at the meeting; council directed staff to investigate costs, appraisal, and development options before any repurchase commitment.