City’s lots priced to move

At last week’s city council meeting, the decision was made to lower the price of many of the lots in the Northwest First Addition.

The city has only sold five lots in the addition in the past five years, and one of those was actually traded, not sold.

“Not having houses there costs us money,” said Councilman Kevin Caspersen. He and Councilman Craig Vreeman took the lead on getting the prices changed, after City Clerk Joel Farrington made the case for lowering the prices in some way.

“We could be sitting in this same place in five years if we don’t do something.” Farrington said. He suggested that they adjust prices on three properties with the stipulation that buyers have to build within a year.

An audience member commented that the southern lots are not very desirable – they are smaller and sloped, and would probably have north-facing driveways.

Caspersen suggested selling the south lots the same way the De Kam Addition was priced: $10,000 per lot with the price forgiven if the buyer lives there 10 years.

Vreeman suggested discounting the price of the most desirable lots, with the first lot sold having the best discount and then the percentage-off decreasing as lots are sold.

Councilwoman Kathy Baker stated that she didn’t like the idea of discounting the lots because the city owed it to taxpayers to try get the full price.

At the close of the discussion, the council voted to make 3 through 8 – which are the smallest and least attractive lots – free if the buyer lives on the property for ten years. For the other lots, the council priced them to move – the first lot sold will be discounted 60 percent, the second lot sold will be discounted 50 percent, and the third lot sold will be discounted 40 percent.

The discounted prices are only good if the building commences soon and is completed by December 31, 2022. The council and clerk wanted to create a sense of urgency and get things moving quickly.

This motion – made by Vreeman and supported by Caspersen – passed on a 3 to 1 vote with Baker voting against and Del Hulstein voting in favor. The mayor only votes to break a tie.

City Closes on Brands Property

Later in the meeting, Farrington reported that K & M Concrete has purchased the last remaining lot in the Industrial Park. He mentioned that if the city wants to develop another industrial park, the council should not move forward until they have businesses interested in purchasing property and developers on board with the project.

Farrington gave the council an update on the Capital Improvement Plan. There was a public hearing during the council meeting regarding the application for a USDA Rural Development loan. No one from the public had any comments on the application.

“As of right now we still do not know what our offer would be,” Farrington said. “We have to file the application before we can see what the payment is going to be.” They will file their intent to submit an application this week.

The Local Roads Improvement Program (LRIP) grant has also been applied for. The city will not hear anything on this until late summer.

Farrington also gave the board an update on the Brands property. They have closed on that property. Prior to closing, the owner, Carol Brands, requested an additional $10,000, even though a purchase agreement had been signed. She had been paid $3,000 out of wellhead protection already this year. The council agreed to pay an additional $7,000.

“It really was not right,” Farrington said, “But the city has already received most of the grant funds on this project.” The city’s attorney pointed out in a special meeting that was held earlier in the week that the city could have litigated on the property, but that would have taken more time and legal fees.

The city now has the keys to the property and it is fully vacated. Over the next month the council and clerk’s office will be working on organizing the sale of the house. The plan is to sell it to be moved off the property.