Council approves appraisal for former school property and stresses coordination with bondholder

The council authorized a city appraisal and roof inspection as it continues to sort options for the former school complex.

Council approved obtaining an appraisal of the baseball lots and related parcels, not to exceed $2,000, so the city can negotiate with the bondholder and potential buyers. Amy, who led the school update, said the EDA contacted appraisal firms and recommended Robinson Appraisal & Associates; staff recommended increasing the consultant estimate to $2,000 to cover possible taxes and miscellaneous fees.

Council also discussed interest from a potential buyer and the practical consequences of selling while a bond remains outstanding. City attorney Jansen advised the council that any sale or deed transfer likely must involve the bondholder, who may require proceeds to satisfy outstanding debt. Council members noted a working bank relationship was needed before entering contracts and agreed to inform any prospective buyer that the bondholder will be part of negotiations. The meeting record shows the city currently has a significant outstanding bond balance and that staff and counsel will coordinate with the bank on next steps.

Members authorized Voss Construction to inspect the roof as part of due diligence and discussed sequencing: staff will inform the bank of any formal offers and coordinate whether the bank will participate in negotiations or proceed with foreclosure options.

The appraisal was approved by voice vote; staff said the appraisal will take three to four weeks once engaged. Council discussed other operational items for the school property, including continued interim maintenance (boiler contract) and the potential for the Lions organization to retain lease access to the bus garage during any transaction.

The council will return to the item when appraisal results and any bank guidance are available.