A piece of city-owned property aldermen previously said could be used as a public space in a fast developing portion of Starkville could soon have a new owner.
Aldermen entered into a sale contract last week to transfer a 20.34-acre parcel that previously served as the city’s old sewage lagoon to Bennett York for $500,000.
The sale is not final, as closing is scheduled for 30 days after a 120-day due diligence study and inspection window.
Two phases of environmental studies will occur at the buyer’s expense, the sales contract states.
Efforts to sell the lagoon ramped up in 2014 and 2015 when aldermen saw the surplus property as piece of a financial shell game to buy Cadence Bank’s Main Street property and convert it for long-term police usage.
Two appraisals valued the property at about $400,000, but the city turned down a $300,000 bid earlier this year from property manager and former Starkville Chief Administrative Officer Lynn Spruill.
Aldermen opted not to open a second bid received after the board-imposed advertising deadline.
After the board abandoned the potential Cadence deal because of high renovation costs, Ward 3 Alderman David Little and Ward 4 Alderman Jason Walker said continued ownership of the lagoon space could pay off as new developments materialize in northeast Starkville.
Both aldermen voted against last week’s sales contract.
While Walker said he wasn’t completely against moving the property, he said the city’s timing wasn’t right.
Since the Cadence debate, new developments – a Walmart Family Marketplace and a large car dealership – have materialized in the area.
“There has been more and more interest in that piece of property over the last several months. We’re also doing a parks master plan right now, and it’s very likely that the city needs to look at all of its resources,” Walker said. “As Starkville continues to grow, I think there’ll be more targeted growth in that area; however, there’s no public space there. It has the potential to be that, and my thing is I have hesitancy to take it off the table before being evaluated.
“I don’t deny we have a good price for the property,” he added.
The selling point was a primary reason Ward 5 Alderman Scott Maynard said he voted for the contract.
In addition to a one-time infusion of cash, the property is expected to generate ad valorem taxes each year once developed.
Maynard said he wasn’t exactly sure how it would grow, but trends point to either high density residential or a parcel mixed with residential and commercial spaces.
Turning the old lagoon into a public space, he said, was not a guarantee as costs for environmental reclamation were unknown.
“I think by the time we looked at the lagoon, did the due diligence for certifying it’s safe through testing and then re-purposed it for an open space, we could have probably taken that money and utilized it in the future for another space,” Maynard said.
The board-approved resolution does not state how the proceeds will be spent, or whether the cash will go straight to the general fund or be appropriated to enterprise accounts, like utilities or sanitation.
“The city can always use a one-time influx of cash, and $500,000 would alleviate a lot of pressure. At the end of the day, it’s still a one-time influx of money. I don’t think we’re hard pressed (to sell the property) right now, and I don’t think we have a clear answer,” Walker said.
“Some (aldermen) the money to all go to water and sewer because (the lagoon) was a part of it, but I’m more inclined to see where all of our needs are,” Maynard added. “It’s certainly not a done deal (because of environmental due diligence), but this developer has a history of developing former lagoons and other environmentally sensitive areas.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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