A piece of city-owned land at 27th Street and Old Cheney Road that has sat empty for more than 40 years has two potential buyers interested.
The city bought the land on the northeast corner of the intersection in 1977 for a fire station and library. The fire station was built, but the library wound up elsewhere.
In 2014, the remaining land was officially declared surplus and put up for sale, but the only offer for it — from the owner of the neighboring Old Cheney Apartments — was deemed too low.
Complicating any potential sale was the fact that then-Mayor Chris Beutler's administration did not want to provide access to the land from either 27th Street or Old Cheney Road because any driveways would be too close to the intersection, meaning it really would only have value to the apartment complex, which could reach it with its internal roadways.
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Last fall, the land was put up for sale again, and apartment owner Broadmoor Development made another, higher offer. The city, however, decided to remove the access restriction and got an offer of nearly $800,000 for the land from a pair of neurosurgeons who want to build a 13,000-square-foot medical office and surgery center.
The Urban Development Department moved forward with negotiating a deal that would give the medical development access from 27th Street. It then advertised a public hearing at the City Council.
Tom Huston, an attorney for Broadmoor, saw the posting and checked with his client to see if it was interested in making another offer. He then sent a letter to the council offering to match the offer from the neurosurgeons.
Huston said his client was not opposed to the medical development, but it believes its proposal is better because it does not require an access point on 27th Street.
Jessica Greenwald, an attorney for the neurosurgeons, whose company is called TNNG Capital, said their medical office and surgery center would employ 8-10 people and have 10-20 patients a day. It would operate 8 a.m.-5 p.m. on weekdays, and would bring very little traffic to the site.
Huston acknowledged that the office use would likely bring a higher value to the land and that his client would likely lose a bidding war for the land, but he said Broadmoor was prepared to spend more than $5 million on an apartment building with 42 units.
Urban Development Director Dan Marvin said the city had negotiated in good faith with TNNG Capital and that "it would be unusual practice" to try to create a bidding war at this point.
Michelle Backemeyer of the Urban Development Department said she could only think of one previous case where there were multiple offers on a surplus piece of property, and, in that situation, the department had each bidder present to the council and let the members decide.
The current council will vote on the proposed sale next week.