Sean C. Morgan
The City Council voted 6-0 Monday evening to pay $25,000 in earnest money on the former Sweet Home Ranger District office.
The city will begin an inspection process. Following the inspection period, it may purchase the property, 3225 Main St., for $750,000 for use as a new city hall. The property includes four lots. If the building fails inspections, the earnest money will be reimbursed to the city. If the city decides to buy the property, final payment is due in July.
The council specifically acted on an addendum to a real estate sale agreement, transferring the sale agreement from the city’s agent Bill MacHugh to the city.
The property is owned by Sweet Home Forestry LLC and was the home of the U.S. Forest Service Sweet Home Ranger District office until it moved to its present location, 4431 Main St., several years ago. Its former location has remained mostly unused since then. The Oregon Jamboree rents storage space there, and a land developer briefly had an office inside the building.
This was the first public meeting where the council discussed purchasing the building, and some residents were concerned that this was the first time they were hearing about it.
The council chamber was full Monday evening with residents and staff members.
“How come the people of the city don’t have any say on this?” asked Larry Angland. The building will need new roofing, insulation and drywall. “You’re talking about a lot of money over and above the cost of the building. At this point, I don’t feel this is a wise decision.”
City Attorney Robert Snyder said that the city has saved the money for just this purpose over the years, and the money to pay for it is available. The decision Monday night opens up the inspection process for city officials to inspect the building.
Just like buying a house, the city will complete inspections and then decide whether to buy it, he said.
This situation is unusual, said Councilor Jeff Goodwin. The city has been looking, but if people hear that the city is looking for property, then owners will jack up their prices.
“I hope they understand you can’t have this all out in the public eye at first,” Goodwin said.
“The thing that I want to assure you is we’re not just jumping off a cliff here,” Councilor Dave Trask told the audience. “We’ve researched things. We’re not going in blind.”
“First thing you know, we’re going to get slapped with a bond,” Angland replied.
“We’re not doing something at all,” Trask said. “This is not a done deal.”
Although it has issues, he thinks it’s a pretty solid building, Trask said. That’s his opinion, but maybe it’s not.
“I’m sorry we had to do it in the dark so to speak,” Trask said. “I’m bound by the rules, and we’re trying to tell you, we didn’t try to go behind your back.”
Until it gets a full hearing in public, said resident Dave Erickson, he is against it. He’s lived in other cities where modest plans turn into “Taj Mahals.”
Goodwin said he is concerned about taxes.
No one on the council wants to pay more taxes either, he said. He doesn’t know whether the council will need a bond. That’s something it will have to find out.
He would rather do a bond for $500,000 than a bond for $4 million though, he said.
With projects like this, the costs add up, said resident Shawn Anderson. “I’ll promise you, $3 million will probably look like a squirt in the bucket once this is done.”
This project will snowball, he said.
As Goodwin understands it, rebuilding City Hall from scratch would cost upward of $3 million, he said. At this price, if remodeling costs $300,000 or $400,000 as some councilors think it will, “it’s substantial cost savings for the city.”
He said he would be comfortable if remodeling costs reached $1 million.
Finance Director Pat Gray explained what’s wrong with the current City Hall.
The windows were replaced in the 1970s, but they weren’t sealed correctly, she said. Now the walls are rotting from the inside out. The floor is settling toward the center of the building. The roof leaks. The basement has major leaks that are difficult to address.
As time goes by, she said, she spends more money fixing the building. It’s nickel and diming the city.
The city has had a policy of budgeting at least $80,000 per year in its building reserve fund to pay for a new city hall as well as other projects, including the Sweet Home Police Department, partially paid for with a bond, and the Public Works maintenance yard off 24th Avenue.
Recently, the city hasn’t been able to save money there as it has transferred money to the Police Department for operations, Gray said.
“The city has been saving,” said Councilor Bruce Hobbs. “The opportunity came up to get this at a discount rate.”
The original offering price was much different, Hobbs said.
This building is in the center of the city, which is growing to the east, Goodwin added.
Councilor Greg Mahler, who was serving as mayor pro tem because Mayor Jim Gourley was absent, suggested setting a public meeting where the city can take comments about the building.
“This is not a done deal,” he said. “We’re not even getting started.”
Present at the meeting were James Goble, Ryan Underwood, Mahler, Trask, Hobbs and Goodwin.