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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