Home News CCDC to pay 22% above appraisal for ‘once-in-a-lifetime’ property downtown

CCDC to pay 22% above appraisal for ‘once-in-a-lifetime’ property downtown

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A board of Capital City Development Corporation has decided to purchase approximately 8,000 square feet of land near the Boise Library.

agency will pay $1.9 million for the land and transfer it to the City of Boise. The agency delayed its purchase last month after director Rob Perez suggested the agency get the property evaluated.

The appraisal provided an estimated market price of $1,557,400, 22% below the agreed price.

The property is located on a block otherwise owned by the City of Boise. Just south of the 703 S. 8th St. site is a city-owned long-term leased warehouse. Located on the 8th Avenue bike path across from downtown Boise Public Library.

price increase

It’s unclear how much more the agency paid than other agencies were willing to pay. The agency submitted a low initial bid of about $1,559,500, but told the seller it would pay up to $1.9 million, one percent higher than any other offer.

The seller, Lydia Merrill Trust, made a counteroffer that topped the CCDC cap of $1.9 million. The trust’s real estate agent, TOK Commerical, told her CCDC that there were multiple other offers for the property, but did not disclose pricing for those offers.

CCDC Commissioner Ryan Erstad said: “Is the trust operating out of good intentions, or was there an assumption[by the sellers]that CCDC is cash-rich, especially in this district? How far can we go with this? Let’s see if we can do it,” he asked.

CCDC commercial broker Jay Story said: “because This offer had multiple properties, the listing broker did not want to share the offer. ”

The agency has decided to move forward, echoing comments it made last month about what it called a “once-in-a-lifetime opportunity.”

“It’s an opportunity.”

“Buying above market is not fun, but it’s an opportunity. To pass up an opportunity like this with a $324,000 difference is very short side,” said Dana Zuckerman, Chairman of the Board. . “You could say we overpaid. It wasn’t overpaid…it was the purchase of an opportunity to serve our city more than the market could have.

Boise Mayor Lauren McLean, who is also a member of the Urban Renewal Commission, said it was an investment in the future.

“I can’t act right now because of my Biomark lease, but I will eventually be able to do it,” she said. “I don’t look at it as a cost today, but as an opportunity cost in the long run. I don’t know exactly when all these parcels can be moved, so I can’t assess the price. Do not proceed with this. I think I have something to lose.”

The city signed a 45-year agreement in 2011. Warehouse building leased to an LLC associated with Biomark USA in 2011 Just south of parcels purchased by CCDC. Biomark is now his division of Merck Animal Health and still uses the building.

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