Dutch auctions, Orcutt seep and subdivisions

Council members agreed to sell the plot of land where the old town hall once stood at 210 W. Pine St. through a descending auction. The council directed town attorney Ed Wood to draft a resolution outlining the sale process to present to the council at an upcoming meeting. The resolution will set the official date for the auction.

With a descending auction, the auctioneer establishes a high price and then drops the price down in increments until a buyer makes a bid. For example, in a Dutch auction, the seller agrees to set the initial offering at $1 million. The auctioneer then drops the price to $990,000, then $980,000 until a buyer makes a bid, or agrees to the price, at $970,000. In a Dutch auction, once the initial bid is made, the auction is over.