In December 2020, North Sioux City administration was made aware of the opportunity for land acquisition that would allow for expansion of industrial and residential development of the city. This sizeable acquisition was presented at the North Sioux City City Council meeting Monday, Sept. 20.
Administration and economic development have been in discussions with other parties to come to a deal to acquire this land. Two agreements were presented to the council for consideration.
“The first agreement would involve acquiring 94.93 acres of land immediately north of the Flynn Business Park for immediate development,” City Administrator Eric Christensen explained. “Cost of the first agreement would be $3,037,760 plus one-half of the closing costs. The second agreement would involve the city acquiring the remaining land, approximately 345 acres, at a cost of approximately $10,350,000. Possession of the second tract of land would occur in January of 2023. The acquisitions would be subject to receiving partial funding from the SD Governor’s Office of Economic Development [GOED].”
According to the purchase agreements provided in the agenda packet, the land would be purchased in two separate purchases. The first, 94.93 acres, would be purchased from Graham Aviation for approximately $32,000 an acre – $3,037,760. The final survey for the exact acreage amounts will be determined by Stockwell Engineers.
The first payment of $1 million is due at the time of agreement by both parties, with the final payment due at closing. The parties will also agree to split the closing costs, but the price does not include any realtor commissions. The city also agrees to pay Graham Aviation a three percent design/consulting fee of $91,132.80 for putting the project together. Survey costs through Stockwell Engineers will be prorated between Graham Aviation and North Sioux City on a per-acre basis. The closing date is slated for Dec. 31 or at the earliest possible date following the notice of award funding from GOED, whichever is later.
Agreement two states nearly the same, but the purchase agreement is for $30,000 an acre or approximately $10,350,000. This will also be cost-shared for survey work completed by Stockwell Engineers. The first initial payment to Graham Airfield in the amount of $3 million is slated to be within 30 days of the date the last of the parties execute agreement two. The payment will be deposited in an escrow account at Liberty National Bank (Dakota Dunes). The final payment will be due at the time of closing. This agreement also includes a three percent design/consulting fee to Graham Aviation. The payment will be determined upon completion of a boundary survey by Stockwell Engineers. The payment will be placed in an escrow account by Nov. 15, 2021 or upon receipt of funding from the GOED, whichever is later. The closing date is to be no later than Jan. 4, 2023.
The council approved both agreements by roll call vote with council member Gary Bogenrief abstaining on both. They also approved a contract not to exceed $173,486 with Stockwell Engineering to provide survey, boundary survey, data collection, site certification applications, United States Army Corps of Engineers section 408 permit and an airpark development master plan.
See full story in this week’s Dakota Dunes / North Sioux City Times.