The City of Ottawa’s auction of the Lakeside addition lots — located south of 17th Street — is meant to spur growth in the new housing market and quality of life, a city official said.

The city will auction those eight lots 11 a.m. Thursday in the commission chambers at City Hall, 101 S. Hickory Street St., Ottawa. The starting bids will be $16,000 per lot, according to the auction rules listed on the city’s website.

Wynndee Lee, community development director, said the goal is to sell the lots to people wanting to build new homes. She said the proceeds of the auction goes toward the development of a park adjacent to the lots.

“Because of the stormwater in the area that pond needs to be retained,” Lee said. “There is a big drainage way along the eastern side. If somebody was just buying to hold it, that is not what the goal was. Otherwise if it is going to be vacant, then it might as well be retained by the city and used by the public.”

She said the city would like to build a fishing dock and other amenities, in addition to a walking and biking trail in the park.

“Every improvement for quality of life and attracting people here is something that can pay for itself over time,” Lee said.

She said ever since the city acquired the lots in 2014, the goal was to make those first six lots available to the public so they could generate revenue for the park improvements. She said the commissioners recently made the decision to include two more lots in the sale.

“There has been an awful lot of interest in them,” she said. “The commissioners thought an auction would be better and it would allow people to come in [and bid].”

The lots available are 1, 2, 3, 16, 17, 19, 20 and 21.

The conditions of the auction are:

• Bidder(s) will familiarize themselves with the existing conditions of the land, covenants and easements of public record.

• The land will be purchased for the purpose of residential construction pursuant to all covenants of record, zoning ordinances and building codes of the City of Ottawa.

• Bidders understand that the City of Ottawa reserves the right to reject any or all bids for this project.

• City will not finance and once bid accepted by the governing body, the contract must be executed within 14 days and close within 30 days.

• All lots subject to covenants, copy available to review at city hall.

• Minimum dwelling size (per covenants) is 850 square feet or if more than one story, not less than 1,400 square feet.

• Terms in contract will govern the details of the transfer and available for review at city hall.

• Letter of guarantee required to be a bidder.

• Highest bidder will be given the option to acquire all lots at bid price per lot.

• Impact fee of $1,525 per dwelling unit will be waived if construction begins within 12 months (if lots combined only one waiver per unit). The rebate will be given after construction is complete.