Wednesday, April 6, 2005

Simplot plan hits a hurdle

Council, project team face off over offer to sell discounted lot to city


By GREGORY FOLEY
Express Staff Writer

A popular proposal to develop central Ketchum's largest vacant land parcel nearly reached an impasse this week but now appears to be on track for approval.

In their third review of a proposed master plan for developing the Simplot lot—the 3.8-acre parcel that comprises two city blocks northwest of the Ketchum Post Office—Ketchum City Council members faced off with project leaders over an offer to sell part of the site to the city.

The dispute—which dominated most of the time devoted to the discussion Monday, April 4—at times seemed to be fracturing the council's otherwise firm support for the plan.

At issue Monday was a longstanding proposal to subdivide and establish a master development plan for the Simplot property, all as part of a detailed agreement that would govern everything from the size of the buildings to the number of parking spaces.

A key provision in the plan calls for the city to give up 33,000 square feet of undeveloped public rights of way on the site. The landowners have offered to offset the land vacation with numerous public benefits that would come with the project.

The proposed benefits include 10,000 square feet of community housing, two public parks, improvements to a public bike path crossing the site and public access to a 136-space underground parking garage.

In a series of votes cast last November and December, the city Planning and Zoning Commission recommended approval of the plan.

Under the plan, the western half of the property would be developed with no more than 30 duplex housing units. The eastern half of the site would be divided into three large Tourist-zoned lots, which would encompass two public parks.

One 33,000-square-foot lot along Second Avenue would be offered at a discount to the Sun Valley Center for the Arts. A second 32,000-square-foot lot further north on Second Avenue, called Lot 3, would be offered to the city for $1.5 million, said to be half of market value.

For those lots not sold, the Simplots would either develop them with hired contractors, develop them through a joint venture or sell the parcels and associated building rights to interested parties.

During their first two reviews of the project, council members expressed support for the overall concept but cast doubts about whether the plan did enough to guarantee the public benefits would be realized. A chance existed, they said, that the project would not be developed, the benefits would not be brought about and the city would not be able to regain control of the two rights of way it would have abandoned.

On Monday, council members raised new questions about the proposed "bargain sale" of Lot 3 to the city. Councilwoman Terry Tracy and Councilman Baird Gourlay both inquired about whether any conditions would be attached to the sale.

Real estate broker Dick Fenton—who represents the property's owners, Gay and Scott Simplot—said the sale would be subject to a condition that the land be used to develop a new city hall.

"To me, that's unacceptable," Gourlay said.

Gourlay told Fenton that "it is public knowledge" the city is planning to develop a new city campus on the property where the existing City Hall now sits, on East Avenue. Therefore, the restriction makes the offer essentially worthless, he said.

Gourlay said he would like the Simplots to offer Lot 3 to the city for $1.1 million with no restrictions.

"That isn't the deal," Fenton said.

In time, Tracy and Council President Randy Hall made it clear that they too are in favor of developing a new city hall on East Avenue, not on the Simplot site. All of the council members said they thought the original offer would allow the city to develop Lot 3 as they wished, within the parameters of the master plan.

Maggie S. Simplot, wife of Scott Simplot, told the council that she and her husband put forth the offer as part of a "vision" for the Simplot property.

"I didn't realize, and the family didn't realize, that you guys are opposed to having (a city hall) down there," she said.

Gourlay pushed on.

"I had all these other ideas we could do," he said.

In the end, project representatives agreed to consider an alternative use of Lot 3 if it is "congruent" with the rest of the site.

Simon said he would schedule a special meeting to discuss the matter, stressing that he does not want the master plan to be denied simply because of the Lot 3 debate.




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