The City of Powell will retain ownership of Gluten Free Oats property for the time being.

The company failed to close on the sale by a March 4 deadline and the Powell City Council did not extend the purchase agreement with Gluten Free Oats. That means the council will need to vote on a new agreement when GFO owner and CEO Dale Tenhulzen secures funding. 

Since 2010, GFO’s East Washington Street property and facility developments have been partly financed with more than $1.7 million in grants from the city and state. The city owns the property and facilities, and the company has been paying back the funding through a lease with the city. 

In July, the city agreed to sell its interest to Gluten Free Oats for $742,500. In December, the council passed a resolution giving Mayor John Wetzel authority to sign the warranty deed and statement of consideration at closing. The agreement was set to expire on Dec. 31 and was contingent on GFO owner and CEO Dale Tenhulzen getting financing.

However, City Administrator Zack Thorington told the council in January that the title company had not received the funding, and so the city had not received its funds. Thorington said a GFO representative told him the funding didn’t go through due to a problem related to the New Year’s Day holiday. The council granted a one-month extension on the agreement, which pushed the deadline to Jan. 31. 

When that deadline passed without the funding from GFO, Tenhulzen approached the council on Feb. 1 to request another extension of the agreement. Tenhulzen said the funding had been sent from a bank in Toronto, Canada, and he wasn’t sure where the funds had gone. He said he was “frustrated” and experiencing “sleepless nights” over the problem. 

The council voted to amend the agreement with a new deadline of March 4. 

At the council’s March 3 meeting, Thorington said the funding still hadn’t been received and wasn’t expected to be by the deadline the following day. He also said Tenhulzen wouldn’t be seeking another extension. 

“We’re just going to hold out until he can secure funding,” Thorington said. 

Instead of doing monthly requests for extensions, Thorington said the company will just continue with “business as usual” until they have the funding for the purchase, at which time the council can consider a new contract with another deadline. 

In the meantime, the company continues to make its regular lease payments to the city, Thorington said.