By PHYLLIS ZORN

Staff writer

Marion city council members Monday declined a bid to purchase a building formerly under an industrial park lease-purchase agreement now in default.

The property at 828 N. Roosevelt St. was formerly under a $269,238 10-year lease-purchase agreement with John and Amy Minor, doing business as JALM Business Group. The city filed a lawsuit against the Minors after payments fell into default and the Minors apparently abandoned the premises.

Council members considered a $160,000 offer for the building, with provisions, from a business already operating elsewhere.

Economic development director Randy Collett did not disclose what business made the offer, but said it appears to be doing well. However, he recommended council members make a counter offer of $195,000.

The potential buyer’s offer also specified the city split a $1,000 agent’s commission, provide a three-year tax abatement, and split title insurance fees. It proposed to find financing within 60 days, instead of the city financing the building.

“I’ve looked at this upside down and backwards,” Collett told council members. “The city has no authority to even offer tax abatement.”

He recommended a counter offer that specifies no split of commission or title insurance, no tax abatement, and that the buyer secure financing immediately.

Council members voted unanimously to decline the offer as presented and make a counter offer instead.

City council members also learned Monday that the state department of transportation has awarded two grants for airport improvement.

One grant is $122,400 to create a formalized development plan for the airport’s future. The other is a $42,750 grant to purchase land to extend the runway north.

City council had earlier planned to purchase 40 acres immediately north of the airport for the extension, but after applying for the grant, the property was sold to Hillsboro land developer Russell Groves. Groves has agreed to sell 30 acres to the city and plans to use the remaining 10 acres to develop hangar homes, city administrator Roger Holter said.

Hangar homes are residential properties with private airplane hangars.

In other matters, council members:

• Looked at damage to the Community Center walls caused by water infiltrating windows on the north side.
• Passed a resolution transferring property at 714 Sherman St. to Marion Land Bank.
• Agreed to purchase Chingawassa buttons for full-time city employees.