MLIRD land purchase on hold

MOSES LAKE - Although the Moses Lake Irrigation and Rehabilitation District board of directors approved a $362,000 land purchase earlier this month, the signing of final papers on the lot that previously housed the Frank Holmes Lumber Company was put off until January. It was brought up during a special meeting Tuesday night, that the contract MLIRD directors approved during their Dec. 4 board meeting now reflected modifications that were not brought to the board for approval.

Board chair Mick Hansen and director Rich Archer originally voted in favor of the land purchase on Dec. 4, while director Ron Covey voted against that motion.

Although the purchase of the property was approved, Covey said the process of signing final papers and writing a check could not be completed because Hansen had changed the contract since then without board approval.

"You made some modifications and changes that were initialed by you and the seller, but they were not approved by the board," Covey told Hansen during the meeting.

Hansen said that he had been making the changes to the contract in order to move the land purchase process along.

"They're (the Frank Holmes estate) trying to get it wrapped up before the end of the year, and I likewise would like to get it wrapped up by the end of the year," said Hansen.

Hansen said the contract indicated a Dec. 27 closing date on the property. However, Covey suggested the district ask for an extension in order to have more time to discuss the changes made to the contract. "These things have been done without board approval. And you have made some changes since then that have major bearing on how we're going to handle this, how we're going to process the purchase and how we're going to pay for it," said Covey. "I don't think that's appropriate."

Covey said MLIRD shouldn't rush into purchasing the property, before thoroughly discussing the deal.

"It will be a good deal then, just like it is now so there is no need to rush through this without doing our due diligence," he said, adding that directors re-visit the issue during their January 2013 meeting.

The conversation about the contract changes was spurred during discussion of a motion made by Archer to waive a contingency of the original contract, that indicates buyer satisfaction of anticipated costs related to developing the property per City of Moses Lake requirements.

According to Hansen, MLIRD has not brought their plans for developing the lot to meet their needs for an office space, workshop, equipment impound lot and a boat launch to city council.

"We took a look at what's required for the railroad part of it and the ecology part of it, but as far as the city part of it there are some unanswered questions," said Hansen.

Covey said that he was concerned about the cost involved with developing the property, and wanted to get a sense of how much it would cost the district before making a decision. Covey suggested asking city council for a pre-development conference, where MLIRD could find out city requirements for developing the lot as well as an estimated cost for the project. Covey said he also had questions regarding the property's true assessed value, and what the district is going to end up paying for the lot.

Although the board has the right to waive the contingency, MLIRD is taking the risk the costs to develop the lot per city requirements could be excessive, according to MLIRD legal counsel Brian Iller. Archer withdrew his motion after the discussion. The board decided to revisit the land purchase contract at their next meeting.