Tuesday, July 18, 2023

Back on the Block

On the agenda for tonight's Common Council meeting are resolutions to sell 429 Warren Street and 10-12 Warren Street

Resolutions to sell the buildings were on the agenda in June, but they were tabled because councilmembers were concerned that, with no minimum bid, the winning bids might be too low, and it was unclear if the City could reject a winning bid if it was too low. The resolutions on the agenda for tonight clarify that "all bids are subject to final approval by the Common Council." The sale is still subject to a $100,000 penalty if the successful bidder does not develop the property or sells it within three years of taking title.

In April, the City tried to sell the buildings in a sealed bid auction, with a minimum bid being the appraised value of each building: $595,000 for 429 Warren Street and $895,000 for 10-12 Warren Street. There were no bids for either property.

A date for the live auction of the buildings has not yet been set.

1 comment:

  1. For an auction, or any bidding situation to work, you need to set the minimum bid to below market value to entice people into thinking they may snag a bargain and then get caught up in a bidding war, with the potential to sell above market value. That minimum doesn't have to be near zero either, but it should be attractive. However, the added contingencies and potential penalty reduce the market value against comparable properties with no restrictions. Plus the turd sandwich that the winning bid may get rejected anyway by the whim of the Council... will likely lead to no bids again. If it's that hard just hire a broker and put it on the open market. It's almost as if some of them are trying to sabotage the potential sale so that they can say "well look, the market doesn't want them," and then turnaround and give it away to some crony fake non-profit under the guise of affordable housing / community use. The city misses out on a modest revenue windfall and the property remains off the tax rolls like a significant chunk of real estate in Hudson. Good grief.