City wins land auction off Webb Ave.

May 31—The city of Crossville is the new owner of approximately 24 acres of property off Webb Ave. after an online auction closed around 12:15 p.m. Thursday.

The city was the high bidder at $540,000. It must also pay a 10% buyer's premium in the auction.

"This project we're talking about — this is a 'build it and they will come' situation," said Mayor James Mayberry. "This property behind us is a once-in-lifetime opportunity for the city of Crossville. There's nowhere else you can find 24 acres."

The council had previously authorized City Manager Greg Wood to bid up to $480,000 on the land where the council hopes to build an indoor recreation center.

The council met in a special-called meeting Thursday to authorize a higher maximum bid as the auction ticked toward its close.

Citing property purchases in the past by the city and Cumberland County of $70,000 to $90,000 an acre, Mayberry proposed setting a maximum bid of $1 million for the property, supported by Councilman Scot Shanks for the purpose of discussion.

"Wherever we are at in the bidding process is below what we should be willing to consider for this property," Mayberry said.

The online auction allowed bidders to enter their maximum bid. The online platform increased bid amounts by $2,500 up to the maximum bid. A $1 million maximum bid would not mean the city would pay that amount, Wood explained.

"It automatically bids you up to the winning position, up to your maximum allocated bid," he said. "You're bidding against somebody who has established what they're willing to go to."

If a new bid was placed in the final few minutes, the auction would extend the time by three minutes, giving bidders time to place higher bids.

Councilman Rob Harrison said the appraisal had placed value of the property at about $480,000.

"I realize the appraisal is based on the past, and we're in a time period where things are going up," Harrison said. "I would be more comfortable with $500,000 plus 10%."

Councilman Art Gernt said the appraisal had surprised him. He had expected a value closer to $900,000.

Wood said an evaluation of the site found about 6 acres of the 24 acres were not usable. Harrison also questioned how much the city would have to spend to prepare the site for construction. City Engineer Tim Begley said there would be quite a bit of excavation necessary and that Harrison's estimate of $500,000 was not unreasonable.

The city had spent about $1 million in site preparation for a building pad in interchange park that was more than twice the size he estimates for the recreation center, but the topography of the property is more steep. He has not received a geotechnical report on the property.

Levonn Hubbard, a Crossville resident, asked the council to reconsider property on Main St. near the old Ford Dealership. While a portion of the property had been sold, several acres remain on the market.

Hubbard said the site would offer the chance to build a facility that provided a positive first impression of the community.

"I was thinking the other day as I was coming into town what magnificent city offices we have here," he said. "I'm thinking what's across the street — a city recreation building which is going to be a magnificent building and a big first impression.

"I think it's worth whatever it takes to make that happen."

Shanks has repeatedly voiced support for the recreation center being in a highly visible location.

"I'd love to see it on that property. I agree people will come find it, but I'd rather have it where it make an impression," he said.

Shanks asked what the possibility was to work out agreements with property owners for the property across from city hall. Begley said several property owners had been agreeable to discussing sale of land to the city, but those agreements had all been verbal commitments.

"There are options to add property to it," Begley said. "I think property owners need to be contacted with a contract to lock the property in so you can go to the next owner. It's a puzzle. You've got to lock each piece in, contingent on the next."

As the bid clock ticked down to under four minutes, Wood pressed the council to move forward with a decision.

The motion to bid up to $1 million failed 1-3, with Shanks, Gernt and Harrison opposed and Mayberry in favor.

The city was still holding the winning bid at this point, $477,500, but the next bid would put them out of contingent.

Gernt moved to bid up to $550,000 for the property, plus the 10% premium, supported by Shanks.

The motion was approved unanimously.

As the auction was nearing its close, another bidder upped their bid. The council watched over the next 15 minutes as the bid slowly increased from $482,500 to $540,000.

After winning the auction, the council approved the first reading of a budget amendment allocating $595,000 from the city's fund balance toward the purchase of the property.

The city will use the property as a match toward grant applications later in the year. The state's Local Parks and Recreation Fund offers grants up to $500,000, with a dollar-for-dollar match required, that could assist with site development. The city intends to apply for that grant in August.

Heather Mullinix is editor of the Crossville Chronicle. She covers schools and education in Cumberland County. She may be reached at hmullinix@crossville-chronicle.com.