ORD-2000-127 Authorization to Purchase Property and Pursue Financing and Renovation Efforts at 228 South Churton Street

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2 The Board authorized County staff to pursue the acquisition of the building at 228 S. Churton Street. The owners of the subject property have agreed to the counter proposal amount offered by the County as follows: • 1400 square feet at the south end of the building: $56,000; • 2600 square feet at the north end of the building , plus one lot behind the facility: $240,000; • for a total of$296,000. The Board is requested to approve the purchase of the property and to direct the County Attorney to work with the property owners and their attorneys to effect closing within 30 days following approval, conditioned upon receipt of the testing results showing complete mitigation of the fuel oil tank concerns raised during the assessment of the property. The County would pursue third party financing for the property for 59 months, with annual payments of approximately $65,000. Requests for Proposals for funding will be solicited by the Finance Director and brought back for Board consideration at a later date. In order that the acquisition process might be concluded during the summer, the Board is being asked to approve a Reimbursement Resolution that would allow the County to pay for the building upon closing and then reimburse itself when financing is obtained. The Capital Project Ordinance to support this action is being presented for Board approval as well. Since time is of the essence, it is proposed that renovation efforts be commenced immediately upon closing. Pre-requisite efforts to ensure that work is begun upon closing include, but may not be limited to: • design of roof replacement and preparation of bid documents; and • renovation plan development, including, but not limited to, floor plan design, electrical upgrade and HVAC design. The Board is requested to authorize the Manager to enter into the contract(s)for professional services that may be necessary to accomplish this work. Finally, it is recommended that roof replacement be the highest priority task. It is likely that the roof design could be completed and bids solicited within a matter of a couple of weeks, which could allow the roof work to begin immediately after closing. The estimate for roof replacement will exceed the approval limit for the Purchasing Director ($20,000). It is therefore requested that the Purchasing Director be authorized to award the bid and execute the appropriate paperwork for the roof work so that it might be completed expeditiously. FINANCIAL IMPACT: The County would purchase a building at 228 S. Churton Street for a total of$296,000. Debt service payments of approximately $65,000 annually would be offset in part by the current rent amount of$18,392 for a net impact of approximately$46,600. Renovation costs for the space have been estimated at $100,000 and would be paid for through a combination of operating and capital funds.