Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Land Sale topic
No spam. Unsubscribe anytime.
City of Oxbow weighs buying $640,000 floodplain parcels as council flags funding and soil concerns
Summary
The City of Oxbow discussed whether to submit an intent to buy two parcels the Metro Flood Diversion Authority declared excess and priced at $640,000; councilors raised financing, potential soil contamination and a 30‑day deadline and asked staff to pursue testing and participation in a public sale.
The City of Oxbow council on March 10 discussed whether to submit a letter of intent to buy two parcels the Metro Flood Diversion Authority (DA) has declared excess and placed on the market at $640,000, officials said.
Under Section 5.4 of the DA policy, adjacent owners have third preference to purchase excess land at market value, and the DA told the city it must express intent within 30 days or the parcels will be offered by public sale, the council was told. The parcels are identified as 78-0000-10356-030 and 78-0000-10356-040 (OIN 9577 and 9579).
Councilors said the parcels are essentially land-locked and would modestly expand the city’s developable area, but they questioned how the city would finance a $640,000 purchase. Council members reported contacting Kindred State Bank; the bank told them financing would require a business plan, an appraisal and a down payment, and projected monthly payments could be “upwards of $12,000,” participants said.
"We need to know how we would afford monthly payments and whether a partner or trade opportunity exists," Council member Mike Bindas said during the meeting.
Several speakers urged caution over site conditions. Bill Kuzas asked whether the borrow pit from the 2009 flood remained and whether soils might be contaminated; the council said the DA has likely not performed environmental testing. Kuzas recommended the city address water- and soil-stability issues before committing to a purchase.
Resident Scott Differding said he did not expect a private developer to pay the DA’s asking price. "I believe no developer would pay this high price for the land," Differding said. Resident Rick Morris added that the city is "not in the business of developing land," underscoring reluctance to take on a speculative development project.
Councilors noted that, if a private buyer develops the lots, the city would review and approve development plans as with any other property and the city would gain tax revenue from new development. The DA notice, councilors said, explained that if the city submits a letter of intent it would be expected to pay the stated $640,000 and that the DA would accept the highest bid in the public sale rather than sealed bids.
As next steps, councilors asked staff to pursue a soil compaction test, investigate water/soil issues linked to the 2009 flood borrow pit and ensure the city can participate in the DA public sale if it moves forward. No motion or formal vote was recorded during the special meeting.
The special meeting was held at Oxbow Country Club and adjourned at 6:49 p.m.
