Changes will continue to take place along Shinn Lane in the future.
Changes will continue to take place along Shinn Lane in the future. With that thought in mind the Hannibal Board of Public Works Board recently OK’d the purchase of five acres of land at the intersection of Shinn Lane and Highway MM.
The Herring property was offered for sale earlier this spring through a local realtor. A portion of the acreage will likely be needed when it comes time to make improvements along Shinn Lane, which will be needed to make the industrial park site more appealing.
“The Shinn Lane traffic study calls for three lanes on Shinn, plus turn left turn lanes at MM. There may also be a right turn lane added on MM at Shinn. We may need 30 to 50 feet of frontage to accommodate Shinn Lane widening,” said Bob Stevenson, general manager of the BPW. “The Board thought dealing with a willing seller with a fair price was better than taking our chances on the next owner who might fight the taking of the frontage strip for the road.”
The property was purchased for $220,000. In a memo to the BPW Board, Stevenson estimated some closing costs in the range of $1,000 to $2,000.
There may also be some additional expenses incurred to make the residence suitable for the BPW to use as a rental property.
“The inspections I authorized turned up an inoperable shower in the basement that I estimate (will cost) another $1,000 to $2,000 to properly repair,” wrote Stevenson in his memo.
Stevenson noted the BPW is not inheriting any “environmental issues” at the site.
In addition to providing the land necessary for the widening of Shinn Lane, the BPW Board also views the purchase as an investment.
“Cash investments the Board currently is earning about 0.3 percent. We believe this land purchase should be viewed as another investment form, a little less liquid, but likely to be more profitable,” wrote Stevenson. “The house on the property is very rentable and rent income could produce a return in the range of 4 to 5 percent for as long as we keep the property.”
Just how long the BPW hangs onto the property is undetermined. However, Stevenson doesn’t anticipating any difficulty selling the site in the future.
“We will sell the rest at the appropriate time,” he said. “Future disposition of the remaining property can and should occur after plans for the development of the business park are committed. We would expect to find a willing buyer.”