The Hillsboro City Council approved the sale of two lots in Hillsboro Heights and an option to purchase one lot in Hillsboro Business Park during its July 24 meeting.
The council approved the sale of lots 4 and 5 of Block 3 in Hillsboro Heights—the southwest corner of the intersection of Western Heights Circle and Elm Street—to Melvin Reimer of Hillsboro for $13,500.
Reimer plans to use the lots to build an auto-detail shop and sales showroom, and a second building for a compatible business, according to Clint Seibel, the city’s economic development director.
Under the terms of the agreement, Reimer has up to 24 months to begin construction. If construction hasn’t started by then, the city can acquire the property from the buyer for the price it was sold.
As part of the agreement, the city agreed to do some grading to ensure proper drainage of runoff water coming from the west, and to enforce the city ordinance “relating to the control of trash and unsightly debris” from neighboring businesses.
Meanwhile, the council also agreed to accept $2,000 from Fei “George” Yang, owner of the local Panda Kitchen restaurant, for an option to buy Lot 1 of Block 3 in Hillsboro Business Park.
Seibel said Yang is interested in using the lot, located at the corner of North Ash Street and East Orchard Drive, to construct a larger facility for his restaurant.
The agreement states that Yang will have 24 months to exercise his option to buy the lot. If he decides to buy it, the $2,000 earnest money would be applied to the $20,000 selling price.
If the sale does not move forward within 24 months, the city will retain the $2,000; the buyer can extend his option for a mutually agreed upon duration and price.
Seibel said Yang is aware that because the lot is part of a tax-increment financing district, he is not eligible to apply for the Marion County Neighborhood Revitalization tax-abatement program.
Seibel said of the transaction, “To make TIF work, we need another business there.”
The council authorized city staff to negotiate the annexation of a portion of U.S. Highway 56 from the west edge of the city limits all the way to Kanza Road as a “city connecting link.”
The action was prompted by a problem with the city’s application to the Kansas Department of Transportation to add turning lanes at the intersection of Highway 56 and the newly renovated North Adams Street.
City Administrator Larry Paine said the city was informed it did not qualify for the project because the targeted property is not under the city’s domain.
As part of the negotiation, the city will develop a contract with KDOT that will relieve the city of any responsibility to maintain the highway, including snow removal.
Paine said it was prudent to extend annexation all the way to Kanza Road because of the possibility of future requests for turning lanes at Industrial Road and points farther east.