Old Fairgrounds up for Bid

The former County Fairgrounds is for sale. While perusing the legal ads Sunday (2/28), I came across the County's advertisement for bids for (what remains of) the former County Fairgrounds. The 16.4 acre parcel is located south of Target and the Westridge Development.

I am not sure why the County has decided to put it on the market at this time, but if it sells, the City is in line to receive 50% of whatever it brings.

That's right, the County has to split the proceeds of the sale 50/50 with the City. The arrangement stems from a deal struck several years ago (ten or more?).

The County was contemplating building a new administration building on the fairgrounds site. The Downtown Development Authority wanted to keep the County employees downtown, so through the leadership of Mayor Peterson, the City "drained their reserves" and using $1 million or more, purchased an entire city block of homes for the county building. The residents were relocated, the new building was constructed, and "Lot 9" was built to serve the County buildings and the downtown.

In return, the County struck an agreement (County Administrator, Greg Lewis) to repay the City the equivalent of 50% of the fairgrounds property. The property was put out on bids at that time, but there were no takers. Then the County hired a broker to sell the property, but were again unsuccessful in selling the property. Maybe the third time is the charm.

Was it worth it? While dislocating a block of single family homes was controversial at the time, in retrospect, it was money well spent. Having the county "campus" and the scores of employees and customers it pulls into the downtown, has been a boon to downtown businesses and is one reason our downtown is still viable.

Putting off the sale of the property for ten years wasn't the worst thing that could happen either. The property is currently appraised at $1.75 to $2 million.

Two questions remain:
Will there be an acceptable bid?
Maybe the start of construction on the Menards store next month will be a catalyst for more development in the area.

What will the City do with the proceeds?
With the recent hits to the City's budget, there are plenty of places for any unexpected "windfall". Personally, I don't think it should go to a "one time" budget fix.

Given that the funds were originally leveraged for economic development, it seems reasonable to use the proceeds for economic development as well. That could be the creation of a new business revolving loan program, an investment in updating or expanding the City's liquor stores, or the creation of a set-aside for BREC operations. What do you think?