Broken Arrow City Council
Meeting of: 06-02-2025
Title:
title
Approval of and authorization to execute the sale of the bid 25.14 for the property located at 401 E. Kenosha to CRS Sanders
End
Background:
The property located at 401 E. Kenosha was acquired by the City of Broken Arrow in 1996 through uncontested condemnation as part of the Kenosha Street widening project. The property was purchased from Allen C. Anderson for $114,000, with funding provided by the Property Tax and Judgment Fund. Since the completion of the road project, the approximately 6,500 square foot (0.15 acre) parcel has remained inactive within the City’s property inventory.
On December 3, 2024, the City Council approved the disposition of the property. Accordingly, Bid No. 25.142 for the sale of the parcel was publicly advertised on February 28, 2025. In addition to the public notice, all adjacent property owners were notified by both email and certified mail. The bid package included a current good faith appraisal valuing the property at $120,000, which was conducted by Ace Appraisal Group, a reputable and experienced appraisal firm.
On March 26, 2025, one responsive bid was received from Mike Lester with Samson Commercial, acting on behalf of CRS Sanders Investment, in the amount of $40,000. On May 21, 2025, the governing body approved RFA 25.605, granting an extension for further research and discussion regarding the disposition of this property.
This parcel has remained idle and has provided no economic return to the City since the completion of the original street project.
Staff recommends proceeding with the sale for several reasons. The property is situated within the Downtown Residential Overlay District, which includes the Rose District, a key focus area for revitalization efforts by the City of Broken Arrow. The City has invested considerable resources in the development of this district to support long term economic and social growth. The property is landlocked and surrounded by a single adjacent property owner, rendering it impractical for independent development due to lack of access. Only one bid was received, indicating limited market interest given the parcel’s constraints. The bid submitted by CRS Sanders Investment includes assurances that the parcel will be integrated with adjacent holdings, enhancing the collective utility and value of the properties. Mr. Sanders has also provided assurances of future investments in the area, which align with the City’s revitalization strategy and vision for downtown Broken Arrow. These assurances include an increase in density in the Rose District which will increase sales tax generated as well as property taxes. The estimates offset the decrease in appraised value versus the purchased price.
Based on these considerations, staff supports the sale of 401 E. Kenosha to CRS Sanders Investment as a means of enabling productive use of the property and contributing to the continued growth and redevelopment of the Rose District.
Cost: Receive $40,000
Funding Source: Reimbursement to the General Fund
Requested By: Ryan Baze, Director of Maintenance Services
Approved By: City Manager’s Office
Attachments: Bid #25-142 - Property Bid Invitation 401 E Kenosha St_
Bid #25-142 - Property Bid Invitation 401 E Kenosha St-Tabulation
Recommendation:
recommend
Approval of and authorization to execute the sale of the bid 25.14 for the property located at 401 E. Kenosha to CRS Sanders
end