Paying $750,000 for a property valued at $600,000 split McMinnville’s Board of Mayor and Aldermen on Tuesday night.
A measure to allow McMinnville Water and Sewer Department director Anthony Pelham to purchase 202 Bell Street for $750,000 passed on first read after a failed attempt to offer less money.
“I make a motion to amend this and offer $675,000,” said Vice Mayor Ben Newman.
The motion failed with a tie vote of 3-3. While Newman and Aldermen Mike Neal and Steve Harvey voted in favor of offering less, Mayor Jimmy Haley and Aldermen Everett Brock and Ryle Chastain voted against it. Alderman Kate Alsbrook was absent.
A tense moment came when the original ordinance to pay $750,000 for the property seemed to follow the same voting path, meaning it too would fail by a tie vote. Newman paused for several seconds before voting in favor of the measure. It passed 4-2. Newman, Haley, Brock and Chastain voted in favor of offering $750,000 for the land, while Neal and Harvey voted against it.
Pelham said he generated the $750,000 offer after property owner Jim Dyer asked $850,000 for it. An appraisal came in at $600,000.
Aldermen asked about other appraisals on the property.
“I did have two items that were given to me,” said Pelham. “One was an appraisal done by B.G. Jones out of Franklin and that appraisal was estimated at $470,000 and I was also given a commercial evaluation that stated the value was $725,000.”
The property is 11.75 acres with a 46,000-square-foot industrial building.
Pelham explained both appraisals and said he believes the $470,000 appraisal was in error because it only included the 6.2 acres inside the fence. After crunching the numbers on the land and setting the land’s valued at $125,000, the appraisal value would be $595,000.
Pelham defended his offer of $750,000 as a way to secure that property, which will protect the Water Treatment Plant and relocate the facility from Bernard Street onto Bell Street to avoid costly ADA-compliance upgrades that would have to be made there.
“One, it thoroughly protects and is a piece of property that none other property in the city has. It’s adjacent to and contiguous with the Water Treatment Plant facility. If the Water Treatment Plant ever had to expand, this purchase will protect it. Two, we will be able to utilize that space for the Water Maintenance Department. As we are looking at ADA upgrades and budget requirements now, I hope to avoid any costs whatsoever at the 103 Bernard facility because it’s really not the best use for our water maintenance guys and I really don’t want to propose any expenditures there.”
The agreement with Dyer also gives him one year to vacate. If the property is purchased, the city would immediately occupy the land outside the fence. Dyer would retain use of the property inside the fence until June 30, 2018 and pay $1,000 a month.
Being an ordinance, the measure requires one more passing read before the board. The next regular session is May 23.