The city will turn to Internet auctions to sell its extra land, a lucrative alternative to the old ways of either requesting offers from developers or just sitting at a table and hashing out a deal.

Selling land online is a new idea for governments in Palm Beach County, city finance officials say.

“As far as I know, we’re going to be the first,” said Nora Laudermilk, the city’s procurement official. “I just thought it would be the best way to get the maximum price.”

The city-turned-auctioneer technique promises to drive already high real-estate prices even higher. The city of North Port recently had an offer of $12 million for 1,900 tax-delinquent properties but raked in $60 million after an online bidding war. Miami sold the Miami Arena online, collecting $3 million more than the initial offer and $6 million above the appraised value, city officials say.

The first item that will be going once, twice and sold is a 43-acre tract along Haverhill Road just south of 45th Street, she said.

But nonprofits trying to get affordable housing built are wondering: What about us? The groups traditionally have relied on generous land deals from local governments so developers can build the projects, sell the units or rent them at lower prices to people with modest salaries, and still make a profit.

The highest-bidder approach would leave them out of the running, they say.

“Construction costs are so high that a key way of making sure housing is affordable is some concession or donation of the land,” said Terri Murray, executive director of Northwood Renaissance, a non-profit group that works on the affordable housing problem.

The groups asked commissioners to set guidelines on which properties might be suitable to be sold at a discount, or even given away, for less-expensive homes and apartments.

Posted: 07|18|06 at 8:42 am. Filed under: US News.