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Homestead council rejects $2.6M downtown property purchase after divided vote
Summary
Citing concerns about price, parking and near‑term use, Homestead City Council voted down a proposed $2.6 million purchase of 406 Washington Ave. The motion failed on roll call after public comment and debate over environmental reports and CRA priorities.
The Homestead City Council voted down a proposed acquisition of 406 Washington Avenue on June 4, 2026, after a contentious public discussion and a roll‑call vote that split the panel.
Developer and CRA proposals would have used a loan (up to $1,666,812) to secure the parcel as part of a downtown revitalization strategy. At the council meeting, resident and consultant Diego Rivaleneta urged the council to reconsider, saying the city was being asked to "approve a ... $2,666,000 purchase of 406 Washington Avenue" and warning the city could be paying for a structure that might be demolished or carry environmental cleanup risks.
Mayor Lawson and CRA staff responded that the council had previously requested additional due diligence — including a second appraisal and phase‑2 environmental work — and that those studies were completed and returned "compatible," in the mayor's words. "I don't know that anyone has ever said that the building would be demolished," Mayor Lawson said during rebuttal. Staff stressed the purchase was tied to a longer‑term CRA strategy to secure key parcels for downtown transformation.
The council vote on the purchase motion was: Councilmembers Fletcher and Cannonball and Mayor Lawson voted yes; Councilmembers Ross, Avila, Koski and Vice Mayor Bailey voted no, causing the motion to fail. After the failed motion the manager was directed to exercise the city's due‑diligence rights under the purchase agreement and provide any required notice of termination to the seller.
Why it mattered: proponents said owning strategic parcels is necessary to direct downtown redevelopment; opponents said the price and lack of guaranteed near‑term public benefit warranted caution. The vote leaves the property in private hands unless future negotiations resume.
Next steps: the city manager will follow contractual due‑diligence steps and report back to council on options and any further actions.
