Published:Monday, June 1, 2009 11:09 AM PDT
Serving the South Coast of Oregon

City: Lockhart Building fix would cost $2.3M
Monday, June 1, 2009 11:09 AM PDT

The Coos Bay City Council must decide what to do with an aging downtown building a structural engineer says will cost more than $2 million to repair.

City officials condemned the Lockhart Building last summer because of safety concerns. The owners of the property, located at the corner of Central Avenue and Third Street, did not respond to city requests to repair the building, so officials took matters into their own hands.

After getting permission from a hearings officer, the city hired a structural engineer to examine the building. The engineer said water leaking through the roof has caused severe damage that may be impractical to repair. The report says structural work would cost $2.3 million, without considering mechanical, electrical, plumbing and architectural costs. A city report says the additional work could double the engineer's price estimate.

City officials have placed the issue before the City Council for its Tuesday meeting. They offer three options: do the structural repairs, board up the building or demolish it. Tearing it down could cost between $250,000 and $500,000, city officials said in a report. The city would pay for the work and then likely put a lien on the property.

Recouping those expenses may not be easy.

The property is owned by a limited liability company whose manager had a falling out with its investors. They want an accounting of how their nearly $1 million in investments was spent. The manager, Gary Mountain, appears to have left the country, judging by e-mails he has sent to The World and to his investors, featuring photos of his stay in Central America.

"None of us investors have legal authority over the LLC," said Matt Miller, one of the investors. "He's left us holding the bag."

The Lockhart isn't the only downtown building the city's discussing Tuesday. City employees want the Urban Renewal Agency to give its authorization to go out for bids to rebuild the Visitor Information Center. The project is expected to cost $1.2 million, with construction beginning this summer. During construction, visitor center operations would need to move elsewhere, and the city wants to rent a first-floor office space in the Hub Building. The city would pay about $17,500 for a 10-month lease. The city considered several other options, including modular office trailers, but determined the Hub Building provided the best visibility and enough space for its needs.


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