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Palaca commission orders ban on land swaps after debate over PRC Way exchange near wellfield
Summary
Following questions about valuation, transparency and potential contamination risks tied to a PRC Way land swap, the commission voted to direct the city attorney to draft an ordinance prohibiting future land swaps and to require fee‑simple purchases with real‑estate counsel for city property transactions.
A contentious review of recent city land transactions on May 28 led the Palaca City Commission to direct the city attorney to draft an ordinance that would prohibit future land swaps and require fee‑simple conveyances handled with real‑estate counsel.
Commissioner Jones opened a discussion of three recent transactions — an airport‑adjacent swap, a port consolidation and a PRC Way exchange — and asked staff for background. Staff said the airport swap had raised FAA questions about runway visibility zones that could affect future grant eligibility; airport staff said the FAA had submitted a cover letter and the city had responded with options under review. The PRC Way swap, the commission was told, involved a 38‑acre parcel purchased at tax deed sale and subsequently bought by Teresa Davis, who sought access so her son could locate a small mechanic shop. The parcel sits within the city’s wellhead protection zone and over a force main.
Staff said they first proposed restrictive covenants to limit contaminant use on the parcel but pursued a swap when the private owner preferred an alternate parcel the city owned along PRC Way. Commissioners pressed whether the PRC Way parcel had been listed among surplus city properties, how the city evaluated equitable value and whether a close relationship to a county official created an appearance problem; one commissioner said a recently received $375,000 offer on the PRC Way parcel made the swap optics more problematic.
City water staff described the contamination concerns they raised in internal meetings: "everything from gas to oils to solvent paint thinners," said the water staff member, and warned that contaminants can migrate to groundwater on varied timeframes (months to decades, depending on conditions). Staff recommended against the city keeping at‑risk parcels near the wellfield and said the swap was intended to remove potential long‑term risk to the public water supply.
Several commissioners and citizens said the transactions illustrated the need to remove negotiation of land deals from staff‑only processes and to require expert real‑estate counsel and transparent, advertised procedures. Commissioner Davis moved that the city attorney draft an ordinance preventing land swaps and requiring fee‑simple purchases with real‑estate attorney review; the commission adopted the instruction and asked staff to return a draft ordinance.
What the commission asked staff to do
The commission directed the city attorney to draft an ordinance prohibiting future land swaps and to ensure future city real‑estate transactions are handled as fee‑simple buys/sells with a real‑estate attorney involved and with improved public transparency (surplus property listings, RFPs for realty services and clearer staff procedures).
