UC Council approves sale of property for $133,800
Posted: Wednesday, October 22, 2008 10:44 pm
By DONNA RYDER
Messenger Associate Editor
By selling a piece of city-owned property, the Union City Council believes it will receive more money than it’s currently getting each year.
The council agreed to sell the property located at 1415 North Fifth St. to JMS Properties LLC, based in Chattanooga, for $133,800.
Currently, the city leases the property to Wesco for $1,000 per month.
During the Sept. 2 meeting of the council, a request was made to the council for the purchase of the property. It was stated, at the time, that a nationally-known trucking company was interested in the property for a small terminal. The council set a price of $153,800 for the property.
Tuesday evening, the council was presented with two offers. JMS Properties LLC bid $133,800 with stipulations, most of which the city can meet. An unsolicited bid of $100,000 came from Weakley County Land Co.
City manager Don Thornton said JMS made the counter proposal after taking into account the cost it will take for them to get utilities and driveway access to the back five acres of the property. There are 7.6 acres to the lot.
One stipulation made is that the property is not in the flood plain. Thornton said part of the land is in the flood plain, but the company has been informed of that. He said the building could be built one foot above the known flood level and he doesn’t think it would be cost
Thornton said the city would get more than $12,000 a year in taxes from the business.
In other business, after the meeting was opened in prayer by city attorney Jim Glasgow Jr., the council:
• Approved on second and final reading total appropriations of $61,463,700 for the budget. They include in the general government service funds: $11,148,961 in the general fund, $342,688 in the state street aid fund, $170,000 in the cemetery perpetual care fund, $25,185 in the drug enforcement fund, $5,500 in the City Beautiful Commission fund, $170,000 in the hotel/motel fund and $1,291,000 in the solid waste fund; in the water and sewer service funds, $4,048,525; in the electric system, $30,928,105; and in the school system funds, $13,333,436. Thornton has said the city is required by state law to show the total budgets for the electric and school systems in its appropriations ordinance.
• Voted on second and final reading to set the tax levy at $1.8132 per $100 of assessed property. This is the certified tax rate.
• Appropriated on second and final reading hotel/motel tax funds, with 42 percent going to the Obion County Industrial Development Corp., 39 percent to Obion County Chamber of Commerce, 14 percent to Main Street Union City Inc. and 5 percent to the city’s general fund for administrative duties.
Mayor Terry Hailey asked if it was possible to raise the hotel/motel tax. Glasgow replied that it was set up by private act and the city could ask the legislature to approve a new rate. He said most cities charge 5 percent, the same as Union City, but there are others which charge more.
• Postponed a Ward 5 appointment to the City Beautiful Commission. It was noted members of the commission are trying to find someone to serve.
• Tabled a decision on supporting the Obion County Joint Economic Development Council’s quest to gain 501c3 status until council members are presented the full proposal.
• Learned from Thornton that the limb truck has been running, with 25 loads picked up on Saturday.
Associate Editor Donna Ryder can be contacted by e-mail at email@example.com.