For the second month in a row, a proposal to market six city-owned lots in Gillett has been put on hold.
On Friday, Gillett Mayor Irene Drake vetoed a plan approved Thursday by the Gillett City Council to advertise the six remaining lots in the Ridgewood Heights Subdivision for $4,950. The council had voted 3-2 to place a notice in the Oconto County Times Herald offering the lots for sale.
In February, the Planning Committee recommended selling the lots to Northern Homes Development LLC for $1, but the plan was referred back to committee after the city attorney and owners of other lots in the subdivision raised concerns. Two individuals who paid fair market value for the lots several years ago objected to the $1 deal, and attorney Tim Schmid said the city could be exposed to a taxpayers’ lawsuit for essentially giving away the land that was purchased and improved with taxpayers’ money.
The city purchased the lots in 1991.
Drake, who did not attend the council meeting on Thursday because she was ill, explained her reasons for issuing the veto in a letter to the City Council. Drake said the city does not have a current value for the lots and could be exposed to a lawsuit for selling them for less than what they’re worth.
The Planning Committee arrived at the price by halving $9,900, the most recent purchase price for a lot. The buyer would have been required to build within two years of purchasing the lot.
According to Alderperson Rick Raatz, chair of the Planning Committee, the reduction is justified by the annual cost to the city for maintaining the lots. At the Feb. 24 Planning Committee meeting, Tim Christensen, director of public works, estimated the annual cost at $3,000 for grass cutting and other maintenance.
Drake, in her letter, recommended Public Works look at options to lower the cost.
Alderperson Nanette Mohr asked if the city considered contracting with a private firm to reduce the annual cost.
“How many years do we continue? The idea is to bring in tax dollars,” Alderperson Tod Anderson responded.
Mohr had further concerns, asking where the city will develop a new subdivision if the Ridgewood Heights lots sell.
“How can we grow if we don’t have some lots to build on?” Mohr asked. Drake shared the same concern in her letter.
Anderson said it was time to move ahead with a marketing effort, “not to sit on these lots and wait for divine intervention.”
The motion to publish the notice narrowly passed. Raatz, Anderson and Jeff Warrichaiet voted yes. Debbie Erickson and Mohr voted no, and Marilyn Mueller abstained.
Drake said the handling of the issue caused “a lot of misunderstanding and feelings of distrust. In my book, it doesn’t pass the smell test. It just doesn’t feel right.”
In a phone interview after the veto was announced, Raatz said the community as a whole would benefit from the sale of the lots, and despite the city attorney’s unease, reducing the price is an accepted practice for other municipalities.
“There’s no reason why we can’t do the same thing,” Raatz said. “Everyone who is on the Planning Committee feels this is something the city should do.”
The Planning Committee is scheduled to meet March 31, but Raatz was unsure what direction the committee will take. Anderson and Raatz are not seeking re-election April 1, and their final council meeting is scheduled for April 3.
To overturn the mayor’s veto, a two-thirds vote of the council is required.
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