Council discusses offer to buy small downtown lot; asks for formal offer and valuation

Council members discussed an unsolicited offer to purchase a small commercial lot the city purchased as part of a 48.05‑acre downtown assemblage in January 2020. Staff said the single commercial lot had originally been bought with Park City Land Bank funds for $72,842.71 and later transferred to the city. An individual offered $40,000 to buy the lot for commercial purposes; staff reported that local real estate agents provided an informal valuation range of $80,000 to $100,000.

Council members expressed concern about selling the parcel for less than the land bank purchase amount and raised several issues: the lot’s limited access and on‑site infrastructure constraints (a stormwater drainage easement in the southern half and a sewer line that divides the lot north‑south), the absence of a formal written purchase contract from the prospective buyer, and whether a sealed‑bid process or a formal appraisal would produce a better market outcome.

Several councilmembers suggested counteroffers or sealed bids rather than accepting $40,000; one councilmember proposed a counteroffer of $60,000. Staff said it could obtain a formal appraisal and that the council could require a written real estate purchase contract before any sale. City legal and staff advised the council that no action was required immediately and that they should not accept an offer without a formal contract.

Why it matters: The sale would liquidate a city asset purchased with public funds; council members said they want to protect taxpayer value and be accountable if selling below prior acquisition cost.

Next steps: Council directed staff to ask the prospective buyer for a written offer or purchase contract and to provide options—sealed bid, counteroffer, or formal appraisal—for council consideration at a future meeting.