However, a last-minute letter to the city put the sale on hold. A group of residents put the city on notice that the decision to sell the property would be subjected to a petition drive that could allow the public to vote on the matter in a referendum.

The group, which includes former mayor Francis Stutzman, now has 30 days to produce approximately 2,000 signatures from eligible Saratoga voters. If the group comes up with the signatures, the decision to sell the property would be decided in a referendum most likely on the November ballot.

The city purchased the North Campus in 2002 for approximately $4.5 million from the Grace United Methodist Church. The intent then was to move the Saratoga Senior Center onto the 2.5-acre property, but that plan fell through and the city found itself with an unused parcel that was costly to maintaining advocated selling the property. They want to use money from the sale to replace the $4.5 million taken from the general fund and the hillside reserve fund for the purchase. The appreciation of the land's value since the purchase would also add a few million to pay for such things as city infrastructure upgrades and repair.

Vice Mayor Aileen Kao and Councilwoman Ann Waltonsmith have opposed the sale, arguing that the city needs the land for community use.

Former councilman Jack Mallory led a campaign to save the North Campus from being sold to a developer. But his attempt to raise enough money to purchase the property fell through last November, and it appeared that public opposition to the sale had tapered off.

The letter received by the city proclaiming an attempt for a public referendum means that the issue that has divided the council for the last four years would not end with a vote on the contract on March 1.

Of nine bids submitted to the city for the property, Masoumi's bid of $7 million was the highest. In last-minute negotiations after the referendum letter was received, city staff cut $500,000 off Masoumi's bid to keep him from walking away from the deal in case the petition for a referendum qualifies, City Attorney Richard Taylor explained.

The contract for the sale of the North Campus had been on the consent calendar for approval at the March 1 meeting. Norman Siegler spoke out in public hearings, saying that the council had tried to bury the item in the consent calendar and sneak it through, knowing the sale of the North Campus was of intense interest to the community.

Cheriel Jensen, an ex-council member, said the city needed the North Campus, and that with a referendum the public could decide on whether it should be sold. "I can ride over a few potholes," she said. "I'm very happy to do that to save this land. Please don't sell this land."

Stutzman called the attempted sale immoral, dishonest and maybe even illegal. "There are many people out here that are violently opposed to what the council is doing. I think it is absolutely disgraceful."

After the public hearings, the council discussed legal issues concerning the petition, the costs of a referendum and the deal to give Masoumi a $500,000 discount in the event 2,000 signatures were collected. In a repeat of prior votes on the issue, Kline, Streit and King voted to approve the contract. Kao and Waltonsmith voted against it. The 3-2 vote approves the contract but now subjects it to the possible referendum by the public.

If the referendum group is not able to gather the estimated 2,000 signatures or if the petition is rejected by county officials, the city can go ahead with the sale of the North Campus property to Masoumi for the initial bid amount of $7 million, Taylor said.

If the required signatures are gathered within the 30-day time limit and all the proper procedures are followed, then the referendum will go forward.