| LUB makes offer for Hutch property
With the end of a 120-day due-diligence period coming
Friday, Loudon Utilities Board met Monday in a brief special called
meeting to discuss purchase of the Hutch property in Loudon.
The property, which neighbors LUB’s current offices,
was originally put on the market at $1.5 million before dropping to
$1.35 million during front-end negotiations before LUB entered into
a contingency contract.
Following a positive environmental impact study, LUB
board of directors voted unanimously Monday to enable Ty Ross,
city/utility manager, and Joe Ford, LUB attorney, to pursue purchase
of the property at $1 million.
Ford made the recommendation the board pursue at a
price of $1 million based on the need to remediate asbestos and
underground tanks on the property.
“That’s $350,000 off of the contract price, and that
$350,000 off of the contract price would be set aside to take care
of the asbestos and underground tanks, which we’ve got ballpark
estimates that, that might just take care of those two items,” Ford
said. “... It was a pretty good environmental study, but there’s
some things there that need to be remediated. That $350,000 would
give us a pretty good cushion.”
Johnny James made a motion to accept a resolution to
allow Ford and Ross to pursue the property. Carlie McEachern
seconded and the motion passed 5-0. According to the resolution, the
acquisition of the property is for “a potential new Loudon
utilities/municipal building complex,” but Ross said there were no
concrete plans for the location.
“The idea being to look at the opportunity to acquire
it, which would open up a whole host of options for the community,”
Ross said.
Interest in the waterfront portion of the property is
great should LUB complete the purchase, James said.
“That’s a priceless piece of property,” James said.
“That’s Loudon’s future, and I look at it — the city of Loudon and
the utilities, we’re not into development, that’s not what we’re
into. There is a portion of the property we would like to have, and
the waterfront is not part of it, but if we own it, we can control
how it is developed, what happens and who we sell it to. If Hutch
manufacturing sells it, we can’t control anything.
“... I can tell you, and I know for a fact, that
there’s two people, outside developers, that’s interested in it,” he
added. “And I can tell you for a fact that one of them met with our
manager, and I’m sure he’s going to have a meeting with the other
one.”
James was initially reluctant to support the
purchase, but believes it could end up being a positive at a $1
million price tag.
“If we play this right, I think we could end up
having a property that we have little of anything in other than
demolition if we market the waterfront property,” James said.
“We won’t have $1 million in what we’re going to keep. I know
that for a fact. So that’s why I’m for it.”
If the city doesn’t end
up with the property, several board members voiced the
importance of having the location in the hands of someone who
will properly develop the waterfront.
“Look at Knoxville, look
at any place that’s utilized its waterfront and look what it has
done for them, OK,” James said. “... There was a time in
Knoxville’s history when that waterfront wasn’t developed.
Neyland Drive was two-lane. It’s four-lane now.”
Hutch Manufacturing closed its plant located on
the property in January 2012.
Former city/utility manager Lynn Mills expressed
interest in the property for the city and LUB at the time of the
closure.
|
BACK
7/17/17