Property around Huntingburg’s south water tower could be subdivided for private sale

The City of Huntingburg is considering the sale of a portion of a six-acre site where the city’s south water tower is located.

The city council voted unanimously on Tuesday to authorize Mayor Neil Elkins to seek two appraisals and contract for a survey on the city-owned parcel along Sunset Drive as the first step toward a potential sale. The 6.18-acre property has drawn interest from at least one prospective buyer, prompting the council to look into whether selling the buildable portion makes sense.

Only about two acres of the total parcel are considered developable. The rest is made up of steeper terrain, tree cover, and areas that need to remain as a buffer zone around the water tower — though the exact buffer requirements still need to be confirmed with the Indiana Department of Environmental Management.

Utility lines — electric, gas, and water — run through the property, but City Attorney Phil Schneider says that doesn’t have to be a dealbreaker.

Because the property falls outside an economic development area, the sale process is more involved than the city has handled for other parcels.

“Since this is a property that’s not in an economic development area, we will have to open it up to the general public for bids,” Schneider said.

That process includes a public hearing, followed by a bidding period of up to 60 days, during which competing bidders can raise their offers until a final deadline. To protect the city’s investment, a floor can be set on acceptable offers.

“That’s a little bit different than what we’ve done on other properties,” said Schneider, explaining that the recent sale of properties along Veterans Parkway was completed in an economic development area.

“Those can be sold without public bidding,” Schneider told the council. “They just have to be sold for at least the average of two appraisals, so long as the proposed use is consistent with the development plan.”

The fact that the property has to be sold to the highest bidder raised some questions from the council.

“If somebody else came in and outbid all the other bidders and wanted to put a data center on a piece of property like that, or wanted to put a strip club or something on it, what would our rights be to restrict the use of that property,” asked Councilman Jeff Bounds.

There are restrictions on how the property can be used because it is currently zoned agricultural, with allowable uses such as veterinary clinics or small-scale farming. It would have to be rezoned before it could be used for something outside of the agricultural restrictions.

Schneider explained that the city could choose to rezone the property before listing it, or leave that step to the buyer if the buyer’s intended use requires a change.

This would bring the issue before the board of zoning appeals and the council for approval.

Mayor Elkins expressed confidence that the known interested party would be a good fit for the neighborhood. “It’d be a good fit — it wouldn’t interfere with school traffic and those type of things,” he said.

The city currently mows the property weekly. Selling the two-acre parcel would reduce that maintenance burden, though crews would still need to tend to the area around the water tower.