Aurora’s Urban Renewal Authority put aside concerns from some of its members and announced Monday it would purchase the blighted Fanfare property for $4 million, setting in motion a process that could have the land cleared by early next year.

In recent weeks some members of the renewal authority — which consists of City Council and the mayor — said that the deal to buy the property at 333 Havana St. would amount to a bailout for the site’s owner.

The Denver Post reported that the city had appraised the “as-is” value of the land at $77,000 in August. That same appraisal also noted that if the land were cleaned it could be worth at least $4 million.

In November, the Urban Renewal Authority as a whole voted to enter into a purchase agreement with the owner, Herbert Buchwald, to buy the property “as is” for $2.75 million. Officials with the authority said private estimates by Buchwald and additional environmental studies justified the higher as-is price.

The agreement allowed the authority the option to pay $4 million to have the site — which once housed a vibrant shopping center — demolished and cleaned of all contaminants by Buchwald.

If the city opted for the former, it would have had to cover the costs of remediation on the asbestos-laden property.

On Monday, the urban renewal authority announced it would go the $4 million route and have Buchwald clean the 10-acre site that has sat vacant for more than two decades.

“There’s tremendous potential with this site,” said Aurora Mayor Steve Hogan in a statement. Hogan has been a staunch supporter of the city purchasing the Fanfare site — some spell it Fan Fair or Fan Fare — as he believes its demolition will revitalize the area around East Third Avenue and Havana Street.

Meanwhile, Councilwoman Molly Markert, who opposed the deal, argued recently that if the land were really worth that amount, a developer would have seen its potential and invested in it a long time ago.

A news release from the city Monday said that in accordance with the purchase agreement, Buchwald provided refined cleanup estimates for the site. The three estimates totaled $1.33 million, $1.57 million and $1.81 million, respectively.

The news release notes that each of these cleanup options is more than the original $1.25 million estimate contained within the purchase agreement, “clearly making the $4 million clean and clear purchase price the best choice.”

An internal e-mail from city manager Skip Noe to urban renewal authority members late last week noted that additional tests found that remediation costs for the property would exceed the $1.25 million estimate from the purchase agreement with the owner.

Originally, Aurora was set to make a decision on the purchase agreement back on Dec. 10 but asked for an extension until Christmas Eve, citing an ongoing environmental review.

In 2010, an Arapahoe County commercial appraiser valued the property for the 13th consecutive year at $450,000.

City officials hope to have the land cleared by early next year. Once that is done, Aurora will look to solicit redevelopment proposals for the site.

“AURA’s decision to purchase the site will re-energize development in the area and create new life for the surrounding community,” Hogan said.

Kurtis Lee: 303-954-1655, klee@denverpost.com or twitter.com/kurtisalee