COEUR d’ALENE — The city of Coeur d’Alene is officially on the hook to buy the former Atlas mill site.

The city and Bad Axe LLC, the owner of the property, agreed Wednesday to postpone the closing date by five months, locking in the city to purchase of the land that includes a half-mile of river frontage west of Riverstone.

According to the latest addendum to the original purchase and sale agreement, the city has agreed to purchase of the 47-acre property for $7.85 million with a May 16 closing date. The city turned over its earnest money to the seller.

The city accepts the property as is, without a warranty, according to the agreement that frees Bad Axe of any liability associated with the brownfield.

“There has been a lot of enthusiasm,” said Mike Gridley, city attorney. “We think it will be a positive thing.”

The city announced in April it wanted to buy the former site, with plans to resell part of the property and develop the rest for public recreation.

Holly Lahti, a Rathdrum bank teller who four years ago won a $200 million lottery jackpot, owns the former mill site. Lahti invested a portion of her winnings in properties under the name Bad Axe LLC.

The mill site has been vacant for a decade, its buildings razed and remediation has been completed on much of the site that once housed a mill and lumber storage yards.

The large empty expanse is considered a brownfield — a former industrial site set for development once it is remediated. Locally, brownfield sites have been used for developments in Sandpoint and at Riverstone.

Environmental studies leading up to the latest addendum have shown the parcel appears to be free of toxic or hazardous material.

Mayor Steve Widmyer could not be reached for comment Wednesday. Gridley said the city plans a lot of public input in future plans for the site.

“There will be a lot of community involvement and planning as it goes forward,” he said.