According to City Manager Ray Griffin, former Henderson City Council member Robert Southerland filed a request to purchase the Southerland Mill Pond property for $43,000 several months ago.
The request was not acted upon because city staff was working on budgetary issues at the time.
The last appraisal of the property valued it at $55,000. Five years ago, when the city council last addressed the issue of possible sale of the property, it was said by then-Mayor Clem Seifert that it seemed to contain many factual errors.
The city manager said that Southerland offered $43,000 for the property in as-is condition, meaning that there would be no survey and environmental issues would be waived by the city and transferred to the new owner.
Home in Henderson filed a report on Southerland’s original request in 2005 that details the history and issues with the property.
According remarks made by council member Garry Daeke, the land was purchased [in 1953] for $51,000.
The land was purchased by the city to enhance the city’s water supply at that time. Remains of a pumping station at the site are part of the environmental issues with the land.
$51,000 in 1953 represents the same buying power as $401,563 today according to a calculator located at www.dollartimes.com.
Daeke stated a desire to at least “break even” on the deal.
Member Mike Rainey stated that the committee meeting on the topic was held to determine if the land would be offered for sale, not to set a price. He said that if a higher bid was received, then the original bidder could make a counteroffer.
According to City Attorney John Zollicoffer, an upset bid must be an offer that is 5% plus $50 greater than the previous bid to be considered an upset bid.
A bid of $45,200 would upset Southerland’s offer.
The motion to offer the land for sale passed with Daeke voting against it.
The attorney went on to say that an upset bid needs to be put in within the next ten days, followed by a deposit of earnest money of $2,200.