County to buy land for convention center
Daviess Fiscal Court has approved purchasing 3.7 acres of property in front of the Executive Inn Rivermont as the future site for the planned downtown convention center. Commissioners approved the purchase agreement Thursday. Fiscal Court will pay $2.227 million to River City Rentals LLC for five parcels of property. Three of the lots are part of the defunct hotel's parking lot, while the other two are on the far east side of the Executive Inn property.
The two easternmost lots form a 1.6-acre area at Second and St. Elizabeth streets. The downtown plan created by the Gateway Planning Group calls for the convention center to be built on the two lots and across St. Elizabeth Street, to connect with a new downtown hotel officials hope to build on the site of the state office facility.
The purchase of the land is part of the $20 million financial commitment Fiscal Court has made to downtown development, Judge-Executive Reid Haire said.
"The insurance premium tax increase - we committed when we passed (it) that our dollars would be directed toward the convention center," Haire said. "One of the things with the convention center is we have to have the land."
The lots were purchased for $1.6 million by local businessman Ryan McDaniel from then-hotel owner John Bays in 2006. McDaniel later transferred the properties to one of his companies, River City Rentals, and later sold his interest in the company.
"One of the principles (in River City Rentals) is Malcolm Bryant," Haire said. "We were advised he would sell the property for what he had in the property - $2.3 million."
The five lots appraised at $2.25 million. Officials were able to reach a compromise figure of $2.227 million. Bryant signed the purchase agreement Thursday.
One of the lots includes the closed Shell station in front of the hotel property. At Thursday's Fiscal Court meeting, County Attorney Claud Porter said an environmental assessment would have to be done on the property before the sale is finalized.
If any environmental cleanup is required and carries a significant cost, the county can either negotiate a new purchase price or forfeit the purchase agreement.
The two lots on the east side will likely be sold to private developers after the hotel complex is demolished.
"I'm not interested in putting a public facility on those properties" on the east side, Haire said. "I'd like to see it in private hands."
River City Rentals officials offered all five properties in one package.
"We could not pick and choose which parcels we bought," Commissioner Mike Riney said during the meeting. "We had to buy the whole package."
The $2.227 million will come out of the total $20 million Fiscal Court intends to put toward the convention center, Haire said.
The purchase "represents the first major (county) purchase and investment in the downtown redevelopment plan," Haire said. "It's certainly our biggest investment."
The agreement calls for the sale to become final on or before Sept. 21.
"There should be no reason why we can't have the closing before Sept. 21," Haire said.
James Mayse, 691-7303, jmayse@messenger-inquirer.com
Copyright, 2009, Owensboro Messenger-Inquirer
