NIC board sets Riverbend site price
POST FALLS - It's back to the negotiating table for a Liberty Lake manufacturer looking to relocate and buy North Idaho College's vacant land in Post Falls.
The NIC board on Tuesday unanimously authorized the development of a proposal to sell NIC's 11.4 acres in Riverbend Commerce Park to AccraFab for $2.15 per square foot or $1.069 million.
Greg Konkol - president of AccraFab, which serves the aerospace, industrial, electronics and energy industries - declined to comment on the board's decision after the meeting, "because of the sensitive nature of the ongoing negotiations," he said.
Chris Martin, NIC's vice president of finance and business affairs, said the company currently employs 165 people and expects to have more than 250 over the next decade. The size of the facility would be 100,000 square feet or more.
The company has 60 days to review the proposal to be drafted and can decline. If the firm likes the proposal, the NIC board would still need to approve the final agreement, which would include other details such as which side would be responsible for closing costs and Realtor fees.
The site is adjacent to NIC's Workforce Training Center.
The proposed purchase price is slightly less than two appraisals that NIC had completed - $1.24 million and $1.19 million.
The manufacturer, described as "Project Atlas" in correspondence between the agencies involved, originally offered $844,860 before increasing the amount to $993,960.
During the meeting, Konkol said his company has struggled to come up with a price due to limited comparable sales in Kootenai County and slow industrial activity, but the company it has contracted with, SDS Realty, has analyzed the market over the past year.
"You can say that the appraised value is 'X', but if you can't sell it within a reasonable amount of time is the value really 'X'?" he said. "We can buy property for under $2 per square foot all day long on both sides of the border."
Konkol said he believes the company's latest offer is about 30 cents a square foot above fair market value based on recent sales and current options it has in both states and not on appraisals.
"From our perspective, we're not looking at this like we're getting a great deal," he said.
Board member Ken Howard made a motion to put the price tag at $2.10 per square foot, before withdrawing the motion and increasing it to $2.15 after a recess.
Board member Ron Nilson pushed for $2.25 per square foot before agreeing with the rest of the board on $2.15. Board members said they were not in favor of NIC paying the Realtor fees as proposed by the company.
"Greg, one thing that I can assure you on is that this community cares about economic development as much as anybody," Nilson told Konkol. "We see the value of jobs and you attracting employees from here."
Nilson said the board is trying to be a good steward of the taxpayers' property as well as look at the economic development advantages of having the company on this side of the border.
NIC officials said the company is also considering two other industrial areas on the west side of Post Falls, but Mike Schmitz of SDS Realty said the firm is most interested in the Riverbend site.
"I hope we can make this deal work," board member Christie Wood told Schmitz and Konkol. "We're below appraised value and I think we're being fair."
Konkol said he's willing to discuss the proposal with NIC administration.
The company's original offer of $844,860 was rejected by the board earlier this month when it was the lone bid received. Under state law, NIC had to reject the bid because it was lower than the appraised value.
However, the college can now accept any offer like a typical land sale.