Published: April 25, 2008 10:15 pm            

FLASHPOINT: Land bid by Staples was way too low

I read an article in the Tribune-Star about the Vigo County Redevelopment Commission approving the sale of property in the Industrial Park to Staples. I find it hard to believe that the Commission allowed the sale to proceed, much less approving it.

When the president of the Terre Haute Economic Development Corp. told Commission members that the appraisal from Staples “was the lowest he had ever seen for a property at the park” the sale proceedings should have been stopped. To agree that the sale price would be an average of the two appraisals was foolhardy. Of course, the purchaser, any purchaser, would submit a low bid in order to drag the purchase price down.

The Commission should be getting top dollar for the land in the park. Staples stated they are going to use this for trailer parking. Something that should be taken into consideration is the location and the use of the property when deciding an asking price. The parcel in question should command a premium price. Where else is Staples going to find cleared, flat, ready-for-use land that offers that kind of convenience within a reasonable driving distance, (provided anyone wanted to sell).

Driving anywhere would cost them more time and increased fuel costs. Diesel fuel is hovering around $4 per gallon and heading higher and would affect thousands of trucks per year. The freight carrier contracted by Staples would undoubtedly pass on the fuel costs to them. That’s an added expense Staples would incur that would add up in a hurry and it would be a permanent situation since there is nothing else close that can be used for trailer parking without considerable expense for clearing the land.

This whole arrangement should not have been to sell the land at an average to start with. This isn’t Monty Hall and Let’s Make a Deal. The law of supply and demand should have applied. We have it — you want it — here’s our price. If you don’t like the price don’t buy it.

Walk into the local Saturn dealer and try to buy a car. You will be told: you want it — we have it — here’s the price, if you don’t like it, don’t buy it. Walk into Wal-Mart and buy a can of anything. The price is set and if you don’t like it, don’t buy it.

Staples is a $20 billion company that can well afford to pay a fair market price. Yes, Staples is good for the valley and they employ a lot of people, as do the other businesses in the park. You can’t really blame them for submitting a low bid, because like any business they want to get as much value for their dollar as they can. But what about the other businesses in the Industrial Park that also want the best value for their dollars? Will they also be able to submit a “lowest bid I’ve ever seen” appraisal to average with a more reasonable (and costly) appraisal so they can buy more land adjacent to their properties? Fair is fair and a precedent has been set.

If you were to liken this to a card game the Commission was holding four Aces and Staples was holding nothing. Remember the lyrics of the song that said “You have to know when to hold ’em and when to fold ’em”. In my opinion the Redevelopment Commission should have held them, but instead they folded. Why?

The county has bills to pay for the services provided and where do you think they get the money to pay their bills? Joe Taxpayer, that’s you and you and you. The county has invested heavily in the development of the Industrial Park so why are they passing up the opportunity to get fair value return on their investment?

You don’t have to be Einstein to figure out that the Redevelopment Commission and the county are the losers. This just proves the words of the immortal showman P.T. Barnum are true. He said “There’s a sucker born every minute and two to take him.” The sale should be re-evaluated and a fair market price set by the Redevelopment Commission

There’s one thing about land — they aren’t making any more of it. Please divulge the name of the Indianapolis firm who did the appraisal for Staples because I may want them to do an appraisal for me. Apparently I will then be able to purchase prime real estate at fire sale prices.

— Frank Grochowski

Brazil

        

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