By GARETT VALCOURT
The Holmes County Commissioners convened for their regular meeting on Tuesday, February 18, to discuss the 58-acre property owned by the county on Decon Road. During the meeting, County Attorney Nathan Nolan announced that the county had received a single bid for the property amounting to $500,000, though the bid included contingencies that could potentially hinder the sale.
To provide further details on the bid, Nolan requested input from listing realtor Mike Alvis.
“We went over the bids,” stated Alvis. “As you know, there are two key components in real estate that affect a transaction: price and terms.”
Alvis explained that the offer of $500,000 was a fair price, with the county’s financial obligation limited to realtor fees and a portion of closing costs totaling $18,500. However, Alvis noted that the contingencies outlined in the offer presented potential challenges. One of the contingencies required that 10 percent of the property be rezoned for commercial use, allowing for the establishment of a convenience store or grocery store to serve the community. Additionally, the bidder stipulated that the remaining 52.2 acres be zoned for residential use, with a minimum of 94 homes to be constructed, equating to approximately one home per one-third to one-half acre.
Alvis further explained that another significant contingency was the requirement for city sewer service to be extended to the property before the second phase of the project could proceed. “That brings us to our next contingency,” he stated. “That contingency is city sewer be brought to the area before phase two.”
The feasibility of meeting this requirement was addressed by County Planner John Feeney, who noted that extending city sewer service to the property would cost approximately $750,000. Feeney also highlighted a restriction under the county’s Comprehensive Plan that prohibits the extension of city sewer services beyond city limits. “According to our Comprehensive Plan, we are not allowed to bring city sewage to that property, and we cannot meet that contingency,” Feeney stated. “We cannot bring city sewage outside the city, and that is the first problem with it.”
Feeney identified additional concerns with the bid’s terms. He explained that the reservation of 10 percent of the land for commercial use would leave approximately 52 acres for residential development. However, infrastructure needs such as roads and stormwater ponds would require roughly six acres, reducing the developable area. If the land-use designation were changed to low-density residential, quarter-acre lots could be permitted, but the lack of city sewer service would prevent that option. Instead, the developer could utilize on-site septic systems with public water, which would allow for lots as small as one-third acre. Feeney suggested that revising the contingencies could facilitate a mutually agreeable resolution that enables the county to proceed with the sale.
Alvis recommended that the board enter negotiations with the bidder to clarify the terms and potentially modify some of the contingencies. He also expressed concern regarding the proposed closing date of August 18. “To my understanding, you need this money relatively quickly, and with these terms, this would not provide that quick turnaround I believe you are looking for,” Alvis noted.
Following discussions, the board voted to extend negotiations with the bidder until March 3 to obtain further clarification. The matter was tabled to allow for continued discussions and potential adjustments to the bid’s terms.
Staff Report 