City commissioners approved two ordinances Tuesday night — one that authorized a real estate purchase and sales agreement for property at 710 W. 2nd St., while the second ordinance authorized a memorandum of agreement with the Owensboro-Daviess County Industrial Foundation, in which the City will purchase the interest of three downtown properties.
The properties concerned in the memorandum of agreement are located at 700 W. Second St., 711 W. Third St. and 614 W. Third St., which are adjacent to 710 W. Second St., where The Royce restaurant previously stood.
A two-part municipal order — first, for the City to purchase the property and, second, for the City to sell a one-third interest in that property to the County — will allow the City of Owensboro and Daviess County Fiscal Court to own an entire block of property that ranges from Second and Third Streets to Elm and Walnut Streets.
“Since the 1950s, the Foundation has been an integral part of our community’s economic development efforts,” said City Manager Nate Pagan. “In partnership with the City and the County, the Foundation buys land and assembles land to sell for economic and industrial projects and then uses the proceeds from that sale to finance subsequent property acquisitions for subsequent properties.”
In 2012, the Foundation acquired property that would be the home to downtown offices for Boardwalk Pipelines. Pagan explained that the Foundation sells property to generate capital for subsequent projects, so the City’s intent is to purchase the interest for these properties.
The Foundation operates on a cost-recovery basis, with proceeds from the sale of property for the purpose of economic development used to acquire property for future economic development.
The City will begin the buyout process of the Foundation’s interest beginning next week, Pagan said, and that buyout process will continue over a three-year period. One of the Foundation’s properties will be jointly owned by the city and county governments, while the City of Owensboro will own the other on its own.
“Together, this will allow the City and the County to assemble a full block to be held in public hands,” Pagan said. “For now, the southern parcel will remain parking for Boardwalk [Pipelines], and the northern part can remain parking for the convention center. However, it could someday serve as a site for a future economic development project. We would, of course, relocate Boardwalk parking if this site were redeveloped.”