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Coquille agrees to sell land, city hall
By Alexander Rich, Staff Writer
Wednesday, March 07, 2007 | No comments posted.
COQUILLE - McKay's Market and a California transplant have their eyes set on city-owned land in Coquille. And the city is ready to sell.
On Monday, the City Council gave its assent to sell 2.71 acres of the former Georgia-Pacific mill site to the South Coast grocery chain for $112,145.22.
Less than 20 minutes later, the council approved the sale of City Hall to Joe Palmoutsos, a power plant control operator, who moved to Coos Bay about seven years ago. The second offer, for the appraised price of $300,000, was approved by the council with a condition that City Manager Terence O'Connor negotiate several terms of the contract.
Because both properties have previously attracted buyers that subsequently shied away, O'Connor cautioned the audience when it burst into applause after the council voted to sell the Georgia-Pacific property.
“It's not necessarily a done deal,” he said. “There is still time for the deal not to happen. When you see shovels, then you can clap.”
Because the deal is still pending, Chuck McKay, owner of McKay's Market, declined to comment about his interest in the site.
O'Connor was similarly tight-lipped, through he said the proposed store would be about 25,000 square feet and would include a drive-up window for a deli.
While the City Council swiftly approved the sale of the Georgia-Pacific land, it was more deliberate in considering City Hall. The deal includes a $100,000 down payment with the city carrying a promissory note and deed of trust for a period of 30 years. Palmoutsos requested a 5 percent interest rate, though the council requested O'Connor to negotiate that figure as well as the length of the note.
A California native, Palmoutsos said he is interested in renting City Hall rooms as office space. He owns a former church building on North Baxter Street that he said he plans to convert into an art cooperative. If he acquires the city hall building, it too would feature artistic elements.
“There are quite a few artists in the area who need studio space,” he said from Ventura, Calif., Tuesday. “Art is a really important part of society.”
At the meeting Monday, some audience members expressed concern about the possibility the City Hall brick facade might be altered by the new owner. Palmoutsos said he would never think of touching it.
“I plan on keeping it the way it is. It's a work of art. It's a beautiful building,” he said.
The building has been on sale since July 2005, when the City Council authorized staff to solicit bids. Within a matter of months, C. Paul and Olivia Hackett, of Bend, entered into negotiations for the property at the corner of Second and Adams streets. The couple withdrew their bid when disagreements about street parking and liability surfaced.
Although he expressed concerns about possible structural deficiencies, Palmoutsos does not anticipate similar difficulties.
“It's a good location, close to the courthouse and it's a beautiful city,” he said. “I have a feeling the city will grow quickly and I want to make sure I get on board before it's too late.”
If the sales go through, the revenue generated will go into the city's property management fund. In the case of the Georgia-Pacific property dividends, the city will use the funds to pay for water and sewage lines that were laid down on the property to attract developers.
New City Hall renovations
The City Council on Monday also accepted a base bid from Harmon Construction for $318,453 to complete renovations to the new City Hall at 851 N. Central Blvd. Combined with architect and engineer fees as well as contingency costs, the renovation project now has a price tag of about $388,300. In November, the council set a $350,000 ceiling for the project, though wage requirements imposed by the Oregon Bureau of Labor and Industries increased costs substantially.
The vote went 5-2, as Councilors Loran Wiese and Kathy Hagen argued they should stick by their word.
The rest of the council was of an opposite opinion, noting inflation would probably keep the price going upward, not down.
“I'd certainly like to see us move forward,” said Mayor Steve Britton. “I'd hate to see it get stagnated and put all our staff in a building that's not made to be a city hall.”
The council also has a timeline to consider now that the existing City Hall might soon be the property of a private citizen. In his agreement, Palmoutsos said the city may continue to use the building until September free of charge. After that, the city will have to rent the building at a cost of $3,750 a month. The city's architect, Joe Slack, said by accepting Harmon's bid, the city could expect the project to be completed by August. He also said he would talk to the contractor and see if they could reduce the cost of the project by value engineering some of the construction materials, though he wasn't too optimistic.
“I don't think we will bring it down that much,” Slack said.
On Monday, the City Council gave its assent to sell 2.71 acres of the former Georgia-Pacific mill site to the South Coast grocery chain for $112,145.22.
Less than 20 minutes later, the council approved the sale of City Hall to Joe Palmoutsos, a power plant control operator, who moved to Coos Bay about seven years ago. The second offer, for the appraised price of $300,000, was approved by the council with a condition that City Manager Terence O'Connor negotiate several terms of the contract.
Because both properties have previously attracted buyers that subsequently shied away, O'Connor cautioned the audience when it burst into applause after the council voted to sell the Georgia-Pacific property.
“It's not necessarily a done deal,” he said. “There is still time for the deal not to happen. When you see shovels, then you can clap.”
Because the deal is still pending, Chuck McKay, owner of McKay's Market, declined to comment about his interest in the site.
O'Connor was similarly tight-lipped, through he said the proposed store would be about 25,000 square feet and would include a drive-up window for a deli.
While the City Council swiftly approved the sale of the Georgia-Pacific land, it was more deliberate in considering City Hall. The deal includes a $100,000 down payment with the city carrying a promissory note and deed of trust for a period of 30 years. Palmoutsos requested a 5 percent interest rate, though the council requested O'Connor to negotiate that figure as well as the length of the note.
A California native, Palmoutsos said he is interested in renting City Hall rooms as office space. He owns a former church building on North Baxter Street that he said he plans to convert into an art cooperative. If he acquires the city hall building, it too would feature artistic elements.
“There are quite a few artists in the area who need studio space,” he said from Ventura, Calif., Tuesday. “Art is a really important part of society.”
At the meeting Monday, some audience members expressed concern about the possibility the City Hall brick facade might be altered by the new owner. Palmoutsos said he would never think of touching it.
“I plan on keeping it the way it is. It's a work of art. It's a beautiful building,” he said.
The building has been on sale since July 2005, when the City Council authorized staff to solicit bids. Within a matter of months, C. Paul and Olivia Hackett, of Bend, entered into negotiations for the property at the corner of Second and Adams streets. The couple withdrew their bid when disagreements about street parking and liability surfaced.
Although he expressed concerns about possible structural deficiencies, Palmoutsos does not anticipate similar difficulties.
“It's a good location, close to the courthouse and it's a beautiful city,” he said. “I have a feeling the city will grow quickly and I want to make sure I get on board before it's too late.”
If the sales go through, the revenue generated will go into the city's property management fund. In the case of the Georgia-Pacific property dividends, the city will use the funds to pay for water and sewage lines that were laid down on the property to attract developers.
New City Hall renovations
The City Council on Monday also accepted a base bid from Harmon Construction for $318,453 to complete renovations to the new City Hall at 851 N. Central Blvd. Combined with architect and engineer fees as well as contingency costs, the renovation project now has a price tag of about $388,300. In November, the council set a $350,000 ceiling for the project, though wage requirements imposed by the Oregon Bureau of Labor and Industries increased costs substantially.
The vote went 5-2, as Councilors Loran Wiese and Kathy Hagen argued they should stick by their word.
The rest of the council was of an opposite opinion, noting inflation would probably keep the price going upward, not down.
“I'd certainly like to see us move forward,” said Mayor Steve Britton. “I'd hate to see it get stagnated and put all our staff in a building that's not made to be a city hall.”
The council also has a timeline to consider now that the existing City Hall might soon be the property of a private citizen. In his agreement, Palmoutsos said the city may continue to use the building until September free of charge. After that, the city will have to rent the building at a cost of $3,750 a month. The city's architect, Joe Slack, said by accepting Harmon's bid, the city could expect the project to be completed by August. He also said he would talk to the contractor and see if they could reduce the cost of the project by value engineering some of the construction materials, though he wasn't too optimistic.
“I don't think we will bring it down that much,” Slack said.
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