The Oak Harbor City Council sold a seldom-used section of a dead-end road for $143,000 last Tuesday night.

KT Development of Bellingham plans to build a commercial development on Highway 20 at the site where the old, orange Copeland Lumber buildings and Diamond Rental now sit. The right-of-way for NE Izett Street runs in between the sites and it will incorporate into the development.

The developers plan to raze the site and build a commercial development totaling nearly 48,881 square feet, with food service establishments, offices, a fitness center and a farm supply store.

The company requested that the city vacate the section of the road.

At a council meeting Jan. 16, city Development Services Director Steve Powers explained that the company hired an appraiser who estimated the value of the 19,950 square feet of road at $12 per square feet. But this value was reduced by 40 percent because the city needs a 50-foot easement for utilities in the area.

The result is $143,000.

“The city has the ability to require full or partial payment,” Powers said.

In addition, Powers recommended that, in lieu of cash, the developers build curbs and gutters on the rest of Izett Street, or at least $143,000 worth of curbs and gutters.

The idea didn’t go over very well.

City Attorney Phil Bleyhl recommended against it because he was concerned about whether the curb-and-gutter project should be bid.

“I’m not terribly fond of the exchange …” he said. “Quite frankly, I think the council should accept cash.”

Councilman Paul Brewer agreed, pointing out that the money could be used for higher priority projects.

“I think the city would be better off with cash at this time,” he said. “We are strapped for cash.”

Councilman Jim Campbell agreed. He said the city would get “much bang for its buck” if the money was used elsewhere, perhaps helping with the Pioneer Way improvement project.

Councilwoman Sheilah Crider and Councilman Larry Eaton argued for the curb-and-gutter project. Crider pointed out the importance of having sidewalks near the middle school.

“Money can go pretty quickly, but road improvements are forever,” Eaton said.

But in the end, the council unanimously voted to accept the full $143,000 in cash.

You can reach News-Times reporter Jessie Stensland at jstensland@whidbeynewstimes.com or call 675-6611.