Two recent public auctions have drawn similarly mixed reactions by North Tonawanda public officials. Each featured commercial properties that sold for a fraction of their perceived value.

Hamburg developer David Stapleton on Monday landed the a winning bid for the city-owned marina at 1000 River Road, coming in at $270,000 plus a $27,000 premium to Auctions International. He said he was acting as an agent for a development entity that has yet to be formed, and that the intention is to run it as a marina.

The sale must still be approved by the common council, as is customary in any city auction.

“There’s still some hurdles to overcome,” Stapleton said. “We’re looking forward to a smooth resolution to the transaction.”

News of the auction was discussed Tuesday, on a night the council finally met to approve a hotly contested bid for the former Schenck Street bowling alley. Received several weeks ago in a separate auction, the $185,000 offer had not been approved by the council because of a disagreement over the property’s value.

The fact that the 2.5-acre marina including a clubhouse and 100 boat slips got an offer of more than $500,000 in 2005 is aggravating those who disapprove of the latest sale — including Mayor Larry Soos, Waterfront Commission Chairperson Beverly Loxterman and at least one resident who spoke at Tuesday’s meeting.

Soos called the bid too low and said it would be a crime to allow the property to continue as a worthless source of either property tax or some other revenue to the city.

“I was kind of disappointed with the price. I would like to consider the city either owning it or leasing it out.”

Concern over the price tag for repairs squashed plans by the city, specifically Soos’ office, to run it themselves last year.

The Waterfront Commission had in late February recommended again trying for a city-run marina, on the heels of a joint resolution signed by Soos and the city council and sent to Albany for approval and to announce the intention to sell.

Loxterman said she feels most members of the city’s waterfront commission, an advisory committee, still agree that the city shouldn’t sell.

“I think the majority of people are very saddened by the low bid because even with the depressed economy, waterfront property doesn’t seem to decrease. I was thinking more in the range of $400,000 to $450,000,” she said.

But Auctions International Senior Auctioneer Russ Scherrer said boaters aren’t taking their crafts out as often because it’s expensive. In some cases they’re not even putting their boats in the water, meaning other slips along the river are available, decreasing demand for such a marina.

“It was right about where it should be taking into consideration the economy,” he said of the offer.

The 20-year veteran auctioneer acknowledged Western New York residential property sales have held their ground, a theory almost unanimously expressed by various analysts since the recession hit, but said that’s not the case for commercial parcels like the marina in question, which was formerly leased to the Niagara River Yacht Club.

“As far as commercial goes it’s down because the bank money is not available for business and business loans,” he said.

Clerk-Treasurer Rob Ortt said he thinks the idea of selling to a private developer is wise because “a business runs a business better than a government,” but that the council and mayor will have to weigh the offer against the cost of the kind of work the slips and dockside clubhouse needs.

As will Stapleton.

He said even if the council approves his bid, it will remain to be seen whether or not he got the kind of good deal precedent suggests.

“The marina needs a lot of work,” he said. “And it will take some sizable investment. So only time will tell whether it was a good investment.”

Ortt ultimately said he thinks private ownership is wise but couldn’t yet say whether the offer was fair, likely the topic of conversation by council members in the coming days or weeks.

“I think you have a similar theme that runs through both (auctioned) properties at this point,” he said acknowledging the just-accepted bid for the bowling alley.

He made clear, however, that the bowling alley owed the city $283,000 in city taxes — just part of an overall $400,000 including county tax. A separate $30,000 IRS lien is also attached to the title.

The marina by contrast, owes no taxes.

Ortt called the offer “disappointing” in light of the previous offer, which didn’t go through because city officials at that time were unaware the state Legislature has to approve waterfront sales from a municipality to a private buyer.

State pols ask that the money be pumped back into public park land.

While that’s pending, however, Ortt acknowledged the opinion of the auctioneer who administered the 13 bids culled from four individuals for a half hour Monday evening at City Hall — that the economy today means the offer is reasonable.

Resident Mike Gondek took issue, speaking at Tuesday’s council session just hours after hearing the news.

“To me it’s a travesty. To me it’s a quarter of a million dollars ... we give away everything on the waterfront. What’s a quarter of a million dollars going to do? I would hope the council will rescind the offer and keep it,” he said.

While both recent winning bids on commercial sales have come from local developers, the council did approve $6,000 when as the latest auction took shape in early spring. Auctions international Vice President Craig Robbins said he got calls from interested parties from Toronto to Florida, something he attributed to $3,700 of that figure being spent on two ads in The New York Times.

The rest of the money was spent advertising in local newspapers including the Tonawanda News and various online forums.

Contact reporter Neale Gulley at 693-1000, ext. 114.