Holmes County Board of County Commissioners advances Decon Road property sale

The Holmes County Board of County Commissioners convened on February 25 for a special meeting to discuss the sale of the 58-acre county-owned property on Decon Road. The meeting followed a previous discussion on February 18, during which the board reviewed a $500,000 bid submitted by Joseph M. Zuppa of OZUSA Investors. The bid included multiple contingencies that required further clarification before approval.

During the February 25 meeting, listing realtor Mike Alvis provided updates on the status of the negotiations. Alvis had been tasked by the board to address key contingencies in Zuppa’s bid, including a definitive due diligence period and the requirement for the property to be connected to the City of Bonifay’s sewer system.

To resolve the sewer connection issue, Alvis met with Bonifay Mayor Larry Cooke. According to Alvis, the city agreed to apply for a grant to assist with the estimated $750,000 cost of extending the sewer line. However, the city required that the property be annexed into municipal limits as a condition for the sewer connection. With this agreement, the bid’s contingencies related to sewer service could be met, aligning with Zuppa’s proposal to develop a minimum of 86 homes on the site.

Cooke addressed the board, stating that because an existing sewer line is located within a quarter mile of the property, the land would be required to connect to the city’s sewage system rather than using septic systems. This requirement aligned with the city’s infrastructure policies.

Commissioner Clint Erickson raised concerns regarding the fairness of the annexation and contingency conditions, noting that another interested party had previously stated they would offer $500,000 if the county assumed the cost of sewer expansion. Erickson suggested that, given the changes in contingencies, the property should be rebid to ensure transparency and allow for additional offers.

County Attorney Nathan Nolin addressed Erickson’s concerns, stating that the board had received only one formal bid and that all interested buyers had the opportunity to submit proposals with contingencies. Nolin also noted that the county had initially set the minimum bid at $400,000 and that Zuppa’s bid of $500,000 exceeded that threshold. “If we put the property out for rebid, we may lose this sale and not receive another offer,” Nolin stated.

Following discussion, Erickson motioned to accept Zuppa’s offer and proceed with the annexation of the property into the City of Bonifay. The board unanimously approved the motion, allowing the sale to move forward under the revised conditions.

The Decon Road property sale was initially discussed during the Holmes County Board of County Commissioners’ regular meeting on February 18. At that meeting, County Attorney Nolin reported that the county had received only one bid for the land, submitted by Zuppa for $500,000. The bid included several contingencies, including the requirement that 10 percent of the property be rezoned for commercial use, while the remaining land would be developed for residential housing.

Realtor Alvis provided additional details on the bid, stating that while the offer price was competitive, the terms presented challenges. One of the primary contingencies required city sewer service to be extended to the property before the second phase of development could commence. County Planner John Feeney noted that extending city sewer services to the property would cost approximately $750,000 and that, under the county’s Comprehensive Plan, city sewer service could not be extended beyond municipal limits.

Further concerns were raised regarding the land-use designation. The property’s proposed development plan included infrastructure elements such as roads and stormwater ponds, reducing the available acreage for residential use. Feeney explained that without city sewer service, the land could only support one-third-acre lots using on-site septic systems.

Given the challenges presented by the contingencies, the board voted to extend negotiations until March 3 to clarify terms with the bidder. Alvis was tasked with negotiating solutions, which led to the February 25 meeting and the resolution of key contingencies, including the city’s agreement to apply for a sewer extension grant in exchange for annexation.

With the board’s approval, the sale process will proceed under the agreed-upon conditions, finalizing the transaction and allowing for the proposed residential development on Decon Road.