Less than an acre of town-owned land on South Street in Cape Elizabeth is about to sell for 11 times its assessed value of $20,000.
The land covers less than an acre and has an assessed value of $20,000.
After an executive session on Monday evening the Cape Elizabeth Town Council voted unanimously to authorize Town Manager Michael McGovern to sign a purchase and sale agreement that allows Jim McFarlane to purchase the property for $225,000.
The two triangular parcels of land are divided into four lots. Three lots make up one parcel and one small triangular lot is the second parcel. The town acquired the land many years ago when the previous owners, who no longer live in the area, failed to pay their property taxes.
McFarlane, who works in real estate, and his wife own over 20 acres of abutting land and view the property as an investment.
“I don’t have any concrete plans,” said McFarlane. “It’s a residential zone, it’s beautiful … so, I think I’ll do something with it.”
McFarlane had initially offered $150,000 for the property, but after other offers were made he raised his price.
“There’s potentially a couple of building lots there,” said McFarlane. However, he stressed there would have to be discussion with the town before any plans were made.
Town Manager Michael McGovern said after the town pays legal expenses related to the sale, and covering the prior owners’ $4,000 unpaid tax bill, the proceeds from the sale will be evenly split between the general fund and the land acquisition fund. Each will receive approximately $106,000.
McGovern said the sale will help refill the depleted land acquisition fund, which is used by the town to purchase easements and other property for conservation. Past purchases using the land acquisition fund have included the town farm on Spurwink Avenue and the Gull Crest property.
For the past couple years the town has been deciding what to do with property it owns that is deemed superfluous to the needs of the community.
“We ought to own the property we need to own,” said McGovern, “and sell the property we don’t need to own.”
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