PROVO -- The city is poised to make a major purchase of land next to the Provo Municipal Airport.
The proposal to purchase 58 acres north of the airport for $2 million will be considered during a public hearing before the City Council during its meeting Tuesday, beginning at 7 p.m.
"We've had an ongoing policy that when people have property for sale adjacent to the airport, we have sought to buy it," said Mayor Lewis Billings. "This is part of the ongoing effort to plan for the future."
The city has no plans for the property because it doesn't yet own it, Billings said. A consultant will be hired if the council approves the deal.
The purchase is not a sign the airport is going to add to or expand its runways, because that isn't necessary, the mayor said. Commercial development that supports the airport is possible.
"This is about supporting what we already have," Billings said.
The land has been in the Knudsen family for decades, since it was obtained by Heber Knudsen.
Four of his grandchildren own 39 of the acres, said Leonard Baxter, one of the grandsons. The other 19 acres belong to their aunt, Donna Knudsen.
"It's been in my family our whole lives," said Baxter, 60. "Some of it's hay and other is in pasture. It's just farmland."
The properties are located at about 4000 West and 200 South. A nearby storage company wanted to buy part of the land from the four Knudsen grandchildren, but if they sold it, the family wanted to be sure their aunt would still have an access road to her property.
"We contacted the city to see about getting permanent rights for access to our aunt's piece," Baxter said. "They said, 'Hold on, we want to buy it. We'll take the whole shebang."'
An appraisal established the value of the land at $35,000 per acre.
Provo has paid $5,000 to the grandchildren and $5,000 to Donna Knudsen for 60-day options on the two properties. The first option expires Monday but has been extended a day to give the council time to consider the purchase.
Baxter and his three sisters would be paid $1,372,000. The city would pay Knudsen $653,100.
The city had not budgeted for the acquisitions. Billings is proposing a loan of $2,020,100 from the city's capital resource fund to the debt service fund. The money would be transferred from that fund to the airport to finance the purchase. The loan would be repaid over eight years at 5 percent interest.
The Council will discuss the proposed loan during a study session that begins at 5:30 p.m. Tuesday at the City Center, 351 W. Center. The Council will hold a public hearing on the issue during a meeting, which begins at 7 p.m. E-mail: [email protected]
