The City of St. Cloud is considering selling a piece of land worth $158,000 to a developer – for just $1.
Makenda LLC wants to build 46 loft units on the empty lot at 523 St. Germain St., the St Cloud Times reports, but the cost of developing the land is so high that it is looking for a little help from the City Council.
The St. Cloud Economic Development Authority (EDA) on Tuesday agreed to set a public hearing to discuss selling the property to Makenda for $1, the newspaper notes.
The sale will be subject to a review by the city's financial advisors, but would be an intriguing arrangement considering the money the city has previously spent on the property, and how much it's now worth.
The EDA's agenda for March 3 reveals the city bought the site in 1992 for $97,500 (just over $162,000 in today's money) and then spent a further $103,700 shortly afterwards demolishing the building on the lot.
It is currently being used as a parking lot, and the EDA agenda shows the estimated market value of the 10,560-square-foot property currently stands at $158,000.
Makenda says the $1 purchase price is based on a "financing gap" the company had previously mentioned about the project, as well as "the unique site constraints."
The lofts will be priced at between $165,000 and $280,000 and will be tailored towards younger and older adults who want an "urban style of living," according to the planning application.
It will include two studios, 37 one-bedroom and seven two-bedroom units.