By John Dobberstein, Editor
The city of Broken Arrow became the official owner of the iconic grain elevator in the Rose District Tuesday after the City Council approved the formal purchase of the structure from Hansen Mueller.
The $250,000 purchase includes the 158-foot-tall elevator and the .17 acres that it sits on, which is owned by the Union Pacific railroad. The City Council approved a budget amendment for the purchase and the city will make an application for the transfer of Hansen Mueller’s railroad lease with Union Pacific to the Broken Arrow Economic Development Authority.
Assistant City Manager Norm Stephens told the Council that Union Pacific has agreed to sell the 0.25 acres being leased to the city at fair market value.
Since news of the grain elevator hitting auction block became public, many residents shared ideas of what could be done with the tower.
Broken Arrow City Manager Michael Spurgeon said the immediate goal of the purchase was to preserve the historic structure, and there are no current plans for any kind of major redevelopment.
There have been discussions about expanding the farmers market into that area, and the Museum Broken Arrow has been discussing a bond request for a museum expansion that could be integrated with the property. But Spurgeon said those and other discussions about the property’s future can’t continue until the property transactions are completed.
During an April 18 auction, the city of Broken Arrow and private Broken Arrow restoration business BornAgain Restore both bid $250,000 for the structure.
A few days later, auction firm DPA notified the city in writing that its bid was accepted by Hansen Mueller, after BornAgain Restored was informed on April 19 that its bid would not be accepted.
The city said it asked Hansen Mueller, before the auction took place, if it would accept an offer for $250,000 and take the property off the auction block. After the Omaha-based commodities trader declined, the auction went on as planned.
BornAgain Restored, which has been active rehabilitating older homes near the Rose District, said in a Facebook post that it was the official high bidder, but was told on April 19 that its bid wouldn’t be accepted. According to the city, because of challenges with the ownership of the land the grain elevator sits on, Hansen Mueller “expressed its preference is to sell the elevator to the city.”
The city said it has, “long been committed to creating an environment that promotes private investment which ultimately leads to more job opportunities and options for residents and visitors to engage in shopping, dining, and entertainment here in Broken Arrow.
“The city of Broken Arrow has a lengthy track record of partnering with the private sector to enhance the quality of life in BA. Among the private companies the City has worked with over the years is BornAgain Restored, and we look forward to working with BAR on its future projects in Broken Arrow.”
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