By Wade Coggeshall
CNHI
DANVILLE — The town council here agreed to table the county's latest offer to buy Danville's former town hall after it couldn't agree on whether to accept it.
Town officials moved their offices late last year from the westside of the courthouse square to the former middle school on Wayne Street. County commissioners are interested in buying the property to house the prosecutor's office. However they countered an offer from the town to sell it for $353,000 without its parking lot with $300,000 plus the parking lot.
Even though that's considerably less than what the town almost sold it to the county for six months ago, some seem willing to accept the latest offer.
"I don't see any other buyers on the horizon," Councilman Mike Neilson said.
Added Council President Jeff Martin, "It's been public knowledge for what, three years, that that property would be available once we relocated here. I don't see any Walgreens or hotel developers. We've only had one potential buyer this whole time. If we don't take this, we'll probably be sitting on that property for years."
Jerry Nornholt, a resident who works in commercial real estate, said he has put the property in front of retail developers to gauge any interest.
"There is nobody at this point in time, in the circles I've talked to, that have any interest in purchasing that property," he said, while acknowledging that it also hasn't been put out to bid or put on the open market. For any private sector parties to buy it, they'd have to bid a minimum of 90 percent of the property's value. The last appraisal put it at more than $900,000.
"The reality is there's not a market for that building at that price right now," Councilwoman Marcia Lynch said. "The only way we can sell that building is to another governmental entity."
But resident Ron Bockstahler said selling the property at a third of its value would constitute theft.
"It just seems like right now we're giving something to the county that's a great asset to the town," he said.
Bockstahler suggested the town council sell the building to the county for $300,000 but lease them the parking lot for $1 for 10 years. If the county doesn't keep the judicial center downtown, then take it back for the same price plus inflation.
Previous indications from county commissioners are that they aren't interested in having any strings attached to the property. And Commission President David Whicker has stated that buying it won't factor into the decision on where to have the judicial center.
Martin believes getting that property into the county's hands gives the town a better than even chance that the judicial center will remain downtown rather than be relocated to the old fairgrounds on the eastside.
"If we do not get that property into the county's hands, there is absolutely no chance a new judicial center will be built downtown," he said. "Someday they will have the money, and when they do, they're gone. And unless this hotel thing comes through, we end up with a dead downtown."
Councilman Dick Burrows never sees that happening. He'd rather see the town get its money's worth from the property.
"They don't have $20,000 to $30,000 to build (a new judicial center) at the old 4-H fairgrounds," Burrows said. "We have a problem here of being buddies with some people and want to give the damn thing away."
A vote on the county's offer has been tabled until Tuesday's meeting.
"We've had this discussion time and time again," Councilman Steve Hartsock said. "We've got to get this right. I still believe if the courts go, we're going to lose downtown. I do not want to be the councilman to lose it."
What initially drew Burrows' ire was the council voting to sell the parcel at 64 E. Marion St. for $25,500 less than what the town paid for it.
The town bought it for $277,500 to turn into a parking lot. Then the council changed its mind, instead deciding to pursue another property for the same function. It's currently a vacant lot and twice the size as the one at East Marion.
Mike McCarty submitted the only bid for the East Marion property, for $252,000. That represents 90 percent of its appraised value, which is the minimum bid required by law. McCarty owns Safe Hiring Solutions, a background security check firm, and plans to house his offices there.
"We're going to lose $25,000," Burrows said. "That's not very good business. I wonder how people in town will react."
Martin noted they'll still save a lot of money by not having to raze the existing structure at East Marion. Not selling the property would leave them with no money to pursue the other lot.
"I can see both sides to this," said Neilson, who voted against accepting the bid along with Burrows. "I hate losing that kind of money. But this has been very fluid, there's no question about that. It's a shame we don't have that last piece in place, because that could make a difference."
The vote was 3-2 to accept McCarty's bid.
"I will never ever vote for that," Burrows said. "I've been out here 18 years and never seen a deal like that. You want to do it, do it. I'm not voting for it."
wade.coggeshall@flyergroup.com
