06/12/1991 Meeting - Laserfiche WebLink

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e Mr. Robinette said that it is in the property owners' interest to have an environmental analysis of the building, noting that such an analysis would be required if the property owner ever plans to sell the property. For this reason, Mr. Robinette argued that the owner should be expected to help pay the costs of the environmental assessment. Mr. Boles agreed and said that this should be negotiated in the agreement. Responding to a question from Mr. Boles, Mr. Bowers said that the property owners have not yet agreed to continue the option. In earlier discussions, an informal proposal was made that the building might be optioned for $60,000 for next year; half of that cost would be applied to the purchase price if the City decided to acquire the building. The current option, which expires this month, is $40,000. Mr. Boles said that he supports the staff recommendation to continue the option for an additional year. If the council decides to take this option, he suggested that the City negotiate with the property owners on two points: that the cost of the environmental assessment be discounted from the purchase price and that the purchase price for acquisition be a component of the agreement. Mayor Miller inquired about the fair market value of the bUilding. Adminis- trative Services Director Warren Wong responded that until the full extent of environmental assessments is known, the City cannot determine the fair market value of the building. The assessed value of the building is approximately $1 million. e Mr. Nicholson offered support for the staff recommendation. He also recom- mended that the City negotiate with the owner a maximum purchase price of $1.3 million with a provision that costs to correct environmental hazards be discounted from that price. Mr. MacDonald said that the citizens have given the council a clear indica- tion of their interest in the former Sears building as the future site of the library and recommended that the council proceed with negotiations for build- ing acquisition. He said that building condemnation would be inappropriate and would appear to citizens as heavy-handed and unfair. Mr. Nicholson said that the council does not have a mandate from the citizens to purchase the building because it did not ask them that question directly on the March ballot. He pointed out that the City does not know what the fair market value of the bUilding may be and should not negotiate a price until it has that information. He also noted that in the long run the City would be saving money by optioning the building. Mayor Miller recommended that the City proceed with building acquisition. If for some reason the building is not suitable for a library, the City might be able to use it to consolidate its administrative and service operations. Ms. Ehrman concurred with Mr. MacDonald that the citizens have expressed a strong interest in a library at this location. She noted that possible costs e MINUTES--Eugene City Council June 12, 1991 Page 5 -~.. -