MOUNT VERNON — By a 5 to 1 vote, Mount Vernon City Council members approved transferring two parking lots to the Knox County Land Bank.
After a lengthy hesitation, Councilwoman Janis Seavolt voted no. Councilman James Mahan was not present.
The parcels comprise a parking lot on South Gay Street across from 18 E. Vine St. The Mount Vernon Parking Co. (MVPC) manages the lot.
The city bought the parcels for $1 each in 1970, which equates to $8.11 in today’s monetary value. The land bank will buy the lots for $8.50 per parcel.
Safety-service Director Tanner Salyers said the unofficial appraisal amount on the county auditor’s website, $116,000, assumes someone is beating down the doors to buy the property.
“There is not a market demand for that piece of land. Nobody is asking to buy this piece of land,” he said during Monday’s council meeting.
Salyers said if someone wanted to develop the lot for business, the city would get a full market appraisal and sell it for that amount.
“I don’t want people to think that we’re just giving away a good prime piece of real estate. It is currently a parking lot. The anticipation is it will remain a parking lot,” he said.
Salyers outlined four potential scenarios for the lots. Each scenario varies regarding management, the number of public parking spaces, and who pays the upgrade costs and assumes responsibility for maintenance.
The city planned to upgrade the lot for roughly $350,000. However, Salyers called that price a high-dollar figure for a Cadillac parking lot.
Under some scenarios, the city incurs additional costs. Other scenarios reduce city expenses.
The city could use the bed tax money it currently gives to the parking company to help cover costs.
If the city collects parking fees to help cover costs, the parcels would lose their tax-exempt status.
Collecting parking fees is not an option if the lot is public parking.
Investing in the downtown
Salyers said transferring the lots to the land bank strongly supports downtown revitalization and urged council members to focus on the downtown investment.
“It is not to help out the land bank. It’s for the fact that it’s 20-plus parking spaces that we will really depend on. [The land bank] wants downtown vibrancy, and so do we as a city,” he said.
Salyers noted the land bank has invested more than $2 million into 18 E. Vine St. to develop vendors and downtown businesses.
“We want to see that revitalization,” he said.
Regarding investing public dollars in a private lot, Salyers said it is not private because it includes public parking.
Salyers said the resolution transfers the lot to the land bank but does not bind the city to anything further.
“This is simply a fee-simple transfer of ownership, and then we have to come back and work out a deal to do [anything else],” he said.
Law Director Rob Broeren responded to Council member Tammy Woods’ question about spending money on property the city does not own, saying contracts cover the process.
“We enter into agreements with other groups to spend money on things that don’t belong to us all the time,” he said.
Any contract would specify the money the city will commit, the number of public parking spaces available, and for how long.
“So there’s no blank check. And even if council did not vote on it, they would be able to see what the written contract says,” Broeren said, adding he is required to review each contract before Salyers signs it.
Council members amended the language to specify that the city transfers the property “as is” before they passed the resolution.
