The Powell City Council has approved the sale of the Gluten Free Oats’ city-owned facilities for $742,500, contingent on the business owners getting financing and closing on the sale by Dec. …
The Powell City Council has approved the sale of the Gluten Free Oats’ city-owned facilities for $742,500, contingent on the business owners getting financing and closing on the sale by Dec. 31.
The property was appraised at $600,000 and the owners must reimburse the city $2,500 for the appraisal services.
The city purchased the property with a state grant as part of a public-private partnership with the Smith family, which owns Gluten Free Oats. They have a long-term lease with the city for the use of the facilities at about $5,500 per month.
The grant agreement included the possibility of the city selling the property, and in May, the Smiths presented a proposal to buy the city out. The Smiths described the move as a way to get financing for marketing, which they needed in order to expand the business in the highly competitive niche food markets.
The Smiths have also been partnering with Dale Tenhulzen, CEO and president of MHF (Mother’s Hemp Farms), for a line of foods with hemp-based ingredients. Tenhulzen planted the Powell area’s first hemp field last month.
On July 6, the council held a public hearing on the proposed sale prior to voting on it. No members of the public had any comments during the hearing, but Gluten Free Oats co-owner Seaton Smith thanked the council for considering the sale.
“It’s been an honor to be able to show other entrepreneurs how a private entity, family-owned, can work with the city and grow this from a table top into an international business,” Smith said.
When the business owners proposed the sale in May, it appeared they were in the position to purchase the property as soon as the sale could be approved.
Councilor Scott Mangold asked about the need for a contingency on the financing coming into place.
“Is this a glitch? Or are you still working on the financing? What’s the status on that?” Mangold asked.
Smith said they needed to make sure the council was going to approve the sale before securing the financing to close on the purchase, and said he didn’t see any problems with the financing coming through.