City buys $150K property to add lane at EWU

The El Dorado City Council agreed Wednesday to go with the asking price for property that is adjacent to the El Dorado Water Utilities and will be used to expand the utilities’ drive-through payment service.

During a specially-called meeting of the El Dorado Water and Public Works Board, the council members who were present unanimously voted to pay $150,000 for the property at 512 N. Washington, which is on the north side of the water utilities and is parallel to the existing drive-through payment lane at the water utilities.

Council members Billy Blann and Mike Rice were unable to attend the meeting.

The property is about a third of an acre and comes with a 1,561-square-foot office building.

In February, Robert Edmonds, director of public works, previously told council members the city was looking purchase only a “strip” of the property, a side yard that is wide enough to add a new drive-through payment lane to alleviate traffic backups at the existing, EWU lane.

But the property owner wanted to sell the entire piece of land, Edmonds said.

The council authorized Edmonds to order an appraisal of the property and last month, he returned with two appraisals, one for $139,500 and the other for $146,000.

Council Member Paul Choate said then that the asking price for the property is $150,000.

The council subsequently approved a motion to offer a median bid of $145,000.

On Wednesday, Choate said the property owner, Larry Holder, was holding firm to the $150,000 asking price.

Choate said he told Holder that he was not sure if the city could pay above the appraised value.

He said he then checked with City Attorney Henry Kinslow, who, in turn, reached out to Lanny Richmond, legal counsel for the Arkansas Municipal League, for guidance on the matter.

“Lanny says that going to ($150,000) doesn’t give him any heartburn because we’ve got that $146,000 appraisal in place … but paying $150,000 is not going to be a problem,” Choate said.

He also said the city can acquire the property and start the process of building the new drivethrough lane, which will come with a payment window with a drawer and pneumatic tube, provided that Holder supply title insurance denoting there are not liens against the property.

“You’re only talking a few hundred dollars for the cost of that and then (Kinslow) would handle the paperwork from there on out. It’s just a deed transfer at that point in time,” said Choate.

“We give him some time to move out but that allows the water company to start the process of getting that other lane built,” he continued.

To avoid co-mingling funds between the city and the EWU, Choate said the city will buy the property and sell a portion of the property deed to the water utilities.

“There’s still certain times of the month where Washington (Avenue) becomes a parking lot,” Choate said, referring to traffic backups that regularly occur at the existing drive-through lane.

Council Member Vance Williamson inquired about a land survey and Edmonds said a survey has already been done on the piece of land that is intended for the drive-through lane.

“Then, once that sale is done between the city and Mr. Holder is done, then there can be the transaction between the city and the water utility,” said Williamson.

Council Member Willie McGhee asked if the existing office building will be razed once the sale is complete and Edmonds said the city intends to use building, which includes space for four offices.

Choate said the building “needs a good cleaning and a little bit of painting.”

Added Edmonds, “We’ll find something to do with that. We would probably wind up paying a third for the entire property just for the strip for the … It just makes sense to buy the whole thing.”