The purchase agreement for the Usem's lot west of the Courtyard apartments was approved by the Housing and Redevelopment Authority (HRA) Wednesday.

The agreement has a target closing date of Sept. 30 with owner Tom Sherman. Before any deal can be closed, a number of contingencies must be met.

First, the property must be appraised at no less than $200,000. Second, a Phase I environmental report must be completed, after which the city engineer will decide whether a Phase II study is necessary. Third, the HRA must have a relocation report for the business. If the cost exceeds or falls below $25,000, the sale price will be adjusted accordingly. Fourth, Sherman must reinvest the proceeds in the development of a new auto dealership within the city limits.

The city council loaned the HRA $225,000 to make the deal. There is a possibility a state grant could cover that cost, however.

Wayne Goodnature was the only vote in opposition to the agreement.

A previous HRA meeting's minutes contradicted the agreement that eventually went to the city council for approval. The agreement had stated another contingency: that the Usem's lot kitty-corner to the HRA building must first be bought by the county.

"We never addressed that part of the issue," Goodnature said.

Previous minutes had been changed a number of times, and there was some discussion to sort it out, but ultimately the board voted to pass the purchase agreement. Dick Lang said since the majority was satisfied with the purchase agreement in front of them and they did not want the contingency on the county's purchase, it was not relevant.

In other business:

Additional terms from potential developers of the Milwaukee Roundhouse Addition were rejected.

Mark Stevens and Edward Vankirk have shown interest in erecting two buildings and a business condominium on the site.

However, in a letter to Community Development Director Craig Hoium, they said the previous terms did not meet their needs.

Among the changes sought were a four-year time period to develop the majority of the site. That is two years longer than the previous agreement allowed.

Also, they wanted sanitary sewer and water included with the purchase.

A number of board members agreed four years is too long for the property to go undeveloped.

Tracey Chamberlain said there have been too many changes to the plan throughout this process.

"Maybe they need to decide how they want to do it, and when they decide they can come back and talk to us," he said.

A resolution passed to approve the 2003 annual plan.

The plan includes $627,397 in grants sought by the HRA for various capital improvement projects.

Matt Merritt can be reached at 434-2214 or by e-mail at :mailto:matt.merritt@austindailyherald.com