The Tumwater City Council agreed to make a $100,000 down payment toward the potential purchase of a building that could serve as the new city hall.
On Tuesday, June 2, the city council unanimously agreed to authorize Mayor Leatta Dahlhoff to sign a contract with Vine Street Investors for the possible purchase of a 95,000-square-foot commercial property at 310 Israel Road.
The initial deposit is nonrefundable, but secures a fixed purchase price of $15.58 million based on a 2023 appraisal and gives the city exclusive rights to buy the building for the duration of the agreement.
The contract also triggers a 180-day inspection window, so the city can conduct structural due diligence and assess its capacity to buy and use the building.
The final purchase price is contingent upon the city council’s approval and the city securing financing for the deal. If the city decides not to move forward, it may do so anytime within the 180-day inspection period.
The purchase, if finalized, would address space limitations at the current city hall.
City Administrator Paul Simmons, who presented the agreement to the city council, said the decision to move forward came from a previous work session where council members discussed other options for acquiring new office space.
The other alternatives had been to remain in the existing city hall and plan for future expansions, construct a new city hall, or build a separate police facility to free up space in the current city hall.
Council members had agreed that refurbishing a vacant building was the most economical option for the city and the fastest way to get more space.
Simmons said based on an initial assessment by a city contractor, staff could occupy two-thirds of the building and lease out the remaining space to generate revenue.
As for the existing city hall, Simmons said it could be turned into a public health and safety complex that could house the police and fire administration, as well as possibly a public health and safety training center.
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Southsoundguy
That piece of junk?! $15 million?
Wednesday, June 3 Report this
CommonSenseSenior
Great addition, Paul Simmons to the City of Tumwater staff. Hope this works out well, you need the space to keep our city moving in the right direction with the best personnel.
Thursday, June 4 Report this
LeahStio
That's cool, I used to work on Point Plaza East. It's a pretty neat building. Just down the street from the current city hall.
Thursday, June 4 Report this
OlyBlues
While this purchase is not bad for the future of the city, other financial decisions call into question the overall financial strategy of Tumwater city Government. If this huge building was even being considered months ago, there was absolutely no need to spend over $1.3 million to purchase a separate fancy lodge at the Valley Golf Course for the Parks Department. As soon as the city gets moved into this new Taj Majal glass palace, they should list the Parks Lodge for sale and consolidate staff into city hall. These kinds of poor financial decisions are not benefiting Tumwater residents and indicative of inexperienced "leaders" in first time positions such as Mayor Dahlhoff and Paul Simmons who have already destroyed the relationship with Tumwater Schools.
Friday, June 5 Report this
Southsoundguy
Deanima, with the zinger! I am stupid because I don't want the City to waste money???
Friday, June 5 Report this