Alpharetta voted Monday night to sell a 1.15-acre lot abutting Union Hill Park at half its appraised price to a company with plans for expansion.
The lone bidder on the property, Manufacturing Resources International, will pay $103,000 for the tract, which it plans to use for parking as its business expands.
Scott Zeigewicz, MRI vice president, said the company wants to consolidate operations of its Alpharetta plant with its American Panel Corporation facility in south Forsyth. The move would result in a combined workforce of about 155, with plans to add another 50 jobs. Both companies specialize in producing illuminated displays in everything from aircraft consoles to advertising signs.
"For us, it's an opportunity to combine our campuses," Zeigewicz said. "We feel it's an opportunity for the city as well."
He said the companies are growing, creating a need to combine operations at either the Alpharetta facility or in south Forsyth.
The council, which delayed action on the sale last month until an appraisal could be done, voted 5-1 in favor of the deal, citing the economic impact business expansion might have on the city.
But Councilman Douglas DeRito, who cast the lone dissent, said he was uncomfortable selling city property for half its appraised value of $225,000. However, he said, the sale would not affect the city's long-term parks program.
The property is part of a vacant 12-acre tract along Union Hill Road near the park.
"I would like to, obviously, get what the property is worth to the taxpayers," he said. "I also see the value of helping and working with a business like MRI to bring more employees to the city and retain the business there."
However, DeRito said, the city was under no obligation to sell and while the property is not currently in use, that does not make it worth half its value.
Councilman D.C. Aiken said he also would be more comfortable with a higher offer. He said he doubted MRI could combine operations in Forsyth for less than $103,000.
Zeigewicz countered that the company derived its offer price based on market conditions in the area. The target property has been laying idle for years, generating no income for the city, he said.
"We know we can go less than three miles from this site and buy sufficient property for $100,000-$150,000 an acre to house our entire campus," he said. "We felt like $103,000 was a reasonable offer and that's all we're willing to offer for it."
After a motion by DeRito to deny the sale failed, Mayor Arthur Letchas moved to make the deal, contingent upon the company following through with its expansion plans.
"I want to see your business stay. I want to see it grow," Lethcas said. "That piece of property is not helping us."
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