The city of Pevely has sold the 43 lots it owned in the Southern Heights subdivision to Lindbergh Properties Construction for $1,075,000, ending a long-lasting headache for city leaders.
Southern Heights is located off Metropolitan Boulevard in the northwest section of Pevely.
“Lindbergh Properties already owns property in the (241-lot) subdivision,” City Administrator Andy Hixson said. “We’d talked and the deal finally went through (May 31).”
Michele Isakson, an owner of Lindbergh Properties Construction, said the company will now begin selling the Southern Heights properties and building houses on them.
Pevely Mayor Stephanie Haas said June 6 that the Southern Heights lots have been an albatross around the city’s neck ever since the city acquired them years ago.
“I’m ecstatic we are no longer in the real estate business, and we are moving forward to bringing quality homes to our community,” Haas said.
She said the city had not sold any of the lots it owned in Southern Heights after taking over the property.
Hixson said the city had been in talks to sell the lots to Lindbergh Properties Construction for many years and finally made the deal after settling issues related to a Neighborhood Improvement District (NID) attached to the subdivision.
“Southern Heights has kind of languished for years because of the NID,” Isakson said. “Now, our lots are NID-free. There is no NID attached at all.”
According to a state audit of the city’s finances conducted in 2014 and published in October 2014, Pevely took responsibility for covering a portion of general obligation bonds related to the NID in 2013.
Hixson said the city likely acquired the unsold lots in Southern Heights prior to that, but he did not know exactly when.
According to former and present city officials, Pevely bought the lots from Jefferson County after the original developer died and the property was turned over to the county because of unpaid taxes.
Isakson said she expects the company soon will begin selling the new lots it acquired in Southern Heights.
“We’re working on pricing right now,” she said. “We’re hoping to sell them in the ($200,000s). The lots are, roughly, 50- to 70-feet wide and 122- to 130-feet deep. They are different sizes.”
She said she is eager to begin marketing the property.
“We are selling immediately. We’ve already received some calls. Lindbergh Properties Construction will be building the houses.”