FARMINGTON -- City officials have approved a deal to buy a foreclosed development on the city's north side for $1.9 million.
The city council voted to move ahead with plans to purchase the Old Farm development from OREO Corp. using money from the city's Redevelopment Agency and two other city accounts. The vote was unanimous Tuesday.
Mayor Scott Harbertson said officials are eager to protect the area, which he described as a gateway to the city.
He said it made sense for the city to purchase the property, because potential developers have shown little interest in sticking to an original agreement for the area approved more than six years ago.
There are multiple possible uses for the site, according to City Manager Dave Millheim. He said the property could be used for affordable housing, open space or an active park, as well as additional storm drain facilities.
Millheim said the property has gone through considerable planning, zoning and site plan approval before being lost to foreclosure.
Key Bank attempted to market the property to developers, but all purchase offers hinged on city approval of future site plans.
"The city will not give any developer conditional approval of possible uses until site plans and applications are submitted and those applications go through a public process," Millheim said.
Officials met in three closed meetings in the past few months to discuss the deal, said Millheim.
"It's a great deal for the city," Millheim said.
Money for the purchase will include $100,000 from the RDA fund balance, $1 million from RDA proceeds, $600,000 from park impact fees and $130,000 from the city's storm drain fund.