City Council authorizes staff to negotiate purchase of parcel near MI6 flood-control project

City Council voted to authorize staff to negotiate the purchase of a privately owned parcel adjacent to the MI6 flood-control project, approving a negotiation cap of up to $300,000 and directing staff to return with a recommended settlement for council review.

A city staff member told the council that the MI6 design removes an existing bridge and converts the western area near the Knockback Tavern property into green space, which affects a second-floor apartment and tenant parking on the parcel. The staff presentation said providing driveway access and replacing water and sewer lines to keep tenants would cost an estimated $286,000, while the parcel was currently listed at $400,000.

Staff said the parcel is not required for flood-control features but asked the state Department of Water Resources whether state acquisition funds could be applied; staff reported the state agreed to let the city use up to 75% of a $186,000 share (or the lower actual amount) toward a purchase. The staff presentation also noted the building has a leaking service line with an estimated $25,000 repair cost and that property taxes were delinquent.

Council members asked whether tenants had leases, what relocation costs would be, and whether the city should instead make accommodations to keep the tenants. Staff said tenant commitments were unclear and that because there are no confirmed tenant leases the relocation cost would be limited; the staff estimate of $286,000 reflects driveway aprons and utility replacements needed to preserve access.

Council discussion focused on negotiation posture. Staff said the parcel’s assessed value for 2024 was reported as $290,000 and that the property reportedly sold in 2021 for about $300,000; owners listed it at $400,000 and told staff they would prefer a buyout. Council members proposed a negotiating ceiling and asked that any negotiated deal include payment of back taxes from closing proceeds.

A council member moved to authorize staff to negotiate the acquisition with an initial cap of $300,000; the motion was seconded and the council voted to move the matter forward. Staff said negotiated terms would be brought back to council—possibly first in executive session for negotiator briefing—and any final settlement would be approved in open session.

The council’s action aims to reduce the risk the city would spend significant utility and driveway dollars to keep a building in place only to acquire and demo it later. The MI6 project team told council members the project is expected to go to bid late March with a likely April opening and construction beginning in summer; sequencing of utility and demolition work within the two-and-a-half-year project timeline remains to be finalized.