FAIRMONT– The Fairmont Economic Development Authority (FEDA) on Monday heard an update on the potential purchase of the Meschke property, located near Highway 39.

For several months, FEDA has been considering purchasing the property to convert it to an industrial park. In May, the board learned that the cost of the land was coming in at much more than anticipated.

On Monday Economic Development Coordinator, Ned Koppen, said, “We talked previously but that’s kind of gone sideways. We had money budgeted to spend on the property… the hope was to buy it at that price. Because of the terms of the purchase option, the price went up substantially.”

While originally expected to be $19,250 an acre, it’s now up to $25,000 per acre. For 37.6 acres of land, that brings the total up from $724,000, to $940,000.

“The extension of the purchase option runs through Sept. 20. We have a dwindling amount of time to do something,” Koppen said.

He shared that he’s had conversations with the property owner and has several ideas but asked the board how it thought they should proceed.

City Council liaison Jay Maynard asked where FEDA’s budget stands in relation to the current price of the land.

“If we paid the $940,000, we’d still have a couple hundred thousand left in the budget, in reserves. That would be less than we have been carrying, but someone could make an argument that that’s what reserves are for,” Koppen said.

Board Member Chantill Kahler said that while she’s not against it, it was “putting a lot of eggs in one basket.”

The board discussed a few counter proposals but ultimately no action was taken on the matter during Monday evening’s meeting.

The board also heard a brief update regarding the Armstrong Drive development. Koppen said the development agreement, between Fairmont Shop Condos, LLC., is currently with the city attorneys. The groups plans to build industrial condos for purchase in Fairmont Industrial Park.

“We should have that back this week…. once we have a document that is agreeable from city staff side… that’s the next box to check and once that’s done they can get started,” Koppen said.

In other news:

— One invoice has been turned in from one of the businesses that have applied for and received money from FEDA’s new facade loan program.

— FEDA will have a booth, shared by several other groups, at the Martin County Fair this week.

— Koppen said that he has reached out to Golden Shovel to update FEDA’s website.