The Sedona City Council is flipping properties quicker than a short-order cook in a Clarkdale mining camp hurling flapjacks.

Council began its latest venture on Jan. 28, when it considered purchasing from the Dahya Revocable Family Trust of California a 1.8-acre commercial parcel at 2411 State Route 89A, next to Builders’ First Source in West Sedona, for $1.99 million with an estimated $25,000 in closing costs.

Since the city’s more than $18 million in housing reserves are already committed to other projects, the purchase would have to be funded by a transfer from the balance allocated to the Ranger-Brewer roundabout project.

“This potential property has the ability to score high for a 9% [Low-Income Housing Tax Credit] project,” Housing Manager Jeanne Blum said. “This property could support between 36 to 40 [housing] units.”

“The preliminary discussions I’ve had with the engineer tell me that the property looks normal,” Blum said, but added that there was an existing blanket easement on the property.

“This easement that was listed as unspecified,” City Attorney Kurt Christianson explained. “It actually has a defined geographical footprint on the very south side of the lot, and it also, by its own terms, will expire if the three utility poles are ever removed, and they’ve all been cut off, so it appears that it’s an expired easement. And it was on the very south end for electrical uses, so it wouldn’t have interefered with developing the property.”

Blum said the city had already issued a request for proposals to developers interested in building on the property that would run through Jan. 30, while Christianson added that closing on the sale, if approved by council, would be expected for Feb. 25.

Councilman Pete Furman asked if commercial uses on the ground floor of any buildings would be allowed if the property were developed as a LIHTC project.

“It absolutely is possible,” Blum said, although she noted that the commercial elements would have to be financed separately.

Christianson said the difference between developing the property with 4% versus 9% LIHTC funding would be whether the city had to make a contribution to the project between $2 million and $2.5 million versus “a couple hundred thousand,” respectively.

“We’re talking the $35,000, $36,000, $40,000, somewhere in that range,” Blum said with regard to proposed rents for the apartments. Median individual income in Sedona is $33,284. She added that some units for higher-income renters would also be allowed.

Community Development Director Steve Mertes said that the Land Development Code would allow “two stories with a possible of three on one side” and that if it was affordable housing, he would have discretion to allow up to 30 feet in height for the project.

“There’s plenty of commercial. I don’t think we need more,” Councilman Derek Pfaff said.

“This is our commercial corridor and it has a certain look and feel,” Councilman Pete Furman said. “A commercial operation on the streetfront that doesn’t have to exist on the whole first floor might actually be a useful amenity.”

“I would be willing to look at concepts that go above two floors,” Furman added.

“We should leave the possibility open for something on the commercial use on the first floor,” Councilwoman Kathy Kinsella said.

“I’m really uncomfortable with the process,” Councilman Brian Fultz said. “I am not convinced that we should be rushing, rushing, rushing for this round of 9% LIHTC funding on the basis of oh, well, it may get worse, the opportunities may be of lesser value … We’re just shooting at whatever happens to be in front of us.”

“We can go to three stories there,” Councilwoman Melissa Dunn said. “It’s not blocking anybody’s views.”

Mayor Scott Jablow said that the property’s location was “more suited” to housing than the city’s parcel at 401 Jordan Street in Uptown.

Council then approved the purchase unanimously, and followed it up on Feb. 11 with another unanimous vote to sell the city property at 401 Jordan to the Sedona Fire District as a location for a new Uptown station.

Christianson concluded that SFD’s appraisal had established the lot’s fair market value. He also stated SFD had asked for an extended due diligence period, moving the proposed closing date to June 1, and that the city and SFD would also have to discuss future plans to relocate the two electric vehicle chargers at the site.