HomeMy WebLinkAbout7463RESOLUTION NO. 7463
A RESOLUTION AUTHORIZING THE PUEBLO
REGIONAL BUILDING COMMISSION AND
DEPARTMENT TO PURCHASE THE PROPERTY
AT 316 WEST 15TH STREET, PUEBLO,
COLORADO
WHEREAS, the Pueblo Regional Building Commission wishes to
purchase on behalf of the Pueblo Regional Building Department the
real property and improvements located at 316 West 15th Street; and
WHEREAS, City Council approval is necessary for such purchase
pursuant to the intergovernmental agreement between the City and
the Pueblo County Board of Commissioners; and
WHEREAS, the purchase of this property is appropriate at this
time to meet the immediate needs of the Pueblo Regional Building
Department.
BE IT RESOLVED by the City Council of Pueblo, Colorado, that:
Section 1
The Pueblo Regional Building Commission is hereby authorized
to purchase for the Pueblo Regional Building Department the
property and improvements located at 316 West 15th Street under the
terms and conditions of a commercial real estate contract, a copy
of which is on file with the office of the City Clerk.
Section 2
This resolution shall become effective upon final passage and
approval.
INTRODUCED: September 12, 1994
By: CHRIS WEAVER
Councilmember
APPROVED:
P ifdent of City Council
ATTEST:
'G�" i - �
Ci ty Clerk
BACKGROUND PAPER ON PROPOSED BUILDING PURCHASE
BY PUEBLO REGIONAL BUILDING DEPARTMENT
In the summer of 1993, the Building Commissioners for the
Regional Building Department began discussions to construct a new
building when the lease expired for the present facility at 316
West 15th Street. Negotiations with the landlord were unsuccessful
in extending the lease. The lease therefore became a month to
month tenancy.
City administrators indicated the Weiker property at the
northeast corner of Main and "D" Streets might be available to
construct a building. Discussions began with City and County
representatives. What was anticipated to be a one story building
for the Building and Zoning Departments became greatly expanded.
The projected cost increased to over $1.2 million dollars. Debt
service for the building would have exceeded $8,700 per month for
the Building Department plus a capital contribution of $200,000.
With the expanded scope of the building, the Building Commissioners
felt the debt exceeded acceptable risk limits for the Building
Department. Alternate sights and facilities were investigated.
The Building Commissioners then looked at buying the building
the Building Department presently occupies. An appraisal was made.
The building was appraised for $370,000 to $380,000. Negotiations
began with the owner to buy the building. The Building Department
has the funds to buy this building. With rising interest rates,
the Building Commissioners decided to offer and the owner accepted
a cash offer of $350,000 for the building. The contract was made
contingent upon approval by the City and County elected officials
by September 21, 1994. The Building Commissioners feel this
purchase is appropriate and financially prudent for the following
reasons:
1. The Building Department will not have to pay $3,000 per
month in rent.
2. The Building Department will not have to pay
approximately $5,200 in real property taxes per annum.
3. Moving costs of $50,000 to $75,000 will be avoided.
(This includes new telephones, computers and furnishing
costs.)
4. There will be no disruption in service to the community
or the construction industry during a very busy
construction period in Pueblo County.
5. No capital contribution will be required for a new
building. This will enable the Building Department to
earn additional interest from COLTAF and will insure that
the Building Department has a minimum of six months
operating revenue for when the eventual downturn in the
construction industry occurs.
I . _.,
6. If the City and County elected officials agree to
construct a multi -story building to house or co- locate
City and County departments, the Building Department will
be able to sell this building and use the funds to pay
for that portion of the building occupied by the Building
Department.
The Building Commissioners also recommend that City
Council members consider entering into negotiations with the County
Commissioners to construct a new facility at or near the Weiker
site. This would enable City and County Departments with like
functions to co- locate and allow the elected officials to establish
a "one stop shop" for building, zoning, public works and related
needs for the construction industry and the community. The
Building Commissioners will assist City Council members in this
plan in any way directed by City Council.
Respectfully yours,
Tawse
Building Official