City Council

MINUTES OF THE CITY OF BRISTOL, TENNESSEE SPECIAL CITY COUNCIL MEETING September 23r2014 CALL TO ORDER: The City of Bristol, Tennessee City Council special called meeting was called to order by Mayor Lea Powers on Tuesday, September 23,2014, at 12:03 p.m. in the Ewell Easley Annex Building. ROLL CALL: Present: Mayor Lea Powers, Councilwoman Margaret Feierabend, and Councilman Jack Young. Vice Mayor Keen was not present during roll call. However, he amived shortly thereafter while City Manager Sorah was presenting the item to Council. Others Present: City Manager William Sorah; City Attorney Jack Hyder; City Recorder Tara Musick; and members of City Staff. RESOLUTIONS: A. Resolutions: Resolution No. 14-89 - A Resolution Approving the Purchase of Real Property City Manager Sorah reviewed Resolution 14-89 which authorizes stafT to proceed with the acquisition of real property located at 200 State Street for a sum of $250,000. The property is currently owned by Charles T. Shrader, who purchased the property in2012. The property consists of one parcel containing approximately 0.4 acre. A vacant three story brick building is situated on the parcel. The structure has a total square footage of 29,072. The building was constructed in 1905. The last occupant was Bristol Supply and Equipment Company, a restaurant equipment supply business. The first floor contains customer service areas. offices, a parts storage room, and equipment storage areas. The second and third floors contain wooden storage racks for equipment. A small basement area contains an unused boiler and freight elevator room. The Sullivan County Property Assessor has the property appraised at8279,000. This includes a valuation of the land at $72,500 and the improvement at $206,500. On August 29th, staff executed a Commercial Purchase and Sale Agreement fbr the property. The agreement was subject to the approval of City Council and the satisläctory completion of structural and environmental assessments of the property. Staff enlisted the services of Spoden &Wilson Consulting Engineers to prepare a structural assessment of the building. The structure was found to be in generally fair to good condition. The report identifÏed areas of the structure that would require repair. The engineer's estimate for the structural repairs totaled $24,500.  Special City Council Meeting September 23,2014 Page 2 of 5 In addition, the report recommended the removal of the "skin" of the existing membrane roof and the replacement of any damaged roof decking. Summit BSR Roofing provided an estimate of $105,000 for replacement of the roof membrane. If the old membrane is removed, a decision can be made on the replacement of any damaged roof decking. The structure has many broken windows that will need to be replaced to prevent further deterioration of the building. In the short term, the broken windows can be secured by plywood until such time as the ultimate use for the building is determined. The Glass Company has provided an estimate of $115,000 for the replacement of all existing windows with energy efficient double-pane windows. Staff enlisted the services of S&ME to prepare a Phase I Environmental Site Assessment (ESA) of the property. A Phase I assessment evaluates the potential for site contamination based upon an analysis of the historical use the property as well as sunounding properties. Based upon the results of the Phase I ESA, four Recognized Environmental Conditions (REC's) were identified in connection with the property. The REC's include an on-site rail spur, documented on-site groundwater contamination from the adjacent dry cleaner, an adjacent metal fabrication business, and a former gas station located up gradient of the property. Based upon historical records, regulatory data bases, and on-site observations, a vapor encroachment condition resulting from the adjacent dry cleaner operation is likely to exist. Staff has authorized S&ME to investigate the site to determine if this condition exists and a remediation strategy. A full charucterization of the vapor encroachment condition will take approximately ten days. This time frame will not allow adequate time to have a final determination of the issue before the Commercial Purchase and Sale Agreement expires. As a result, staff requested S&ME to provide cost estimates for site remediation in the event that the investigation determines the presence of contaminant vapor concentrations inside of the building exceeding EPA Screening Levels. The typical remediation strategy for this condition involves the removal and replacement of the concrete slab and the installation of a slab ventilation system. S&ME estimated that the removal of 50o/o of the concrete slab would be required for remediation. The estimate for this work was approximately $110,000. S&ME was also requested to determine if the structure contained asbestos and, if so, identify the costs of an asbestos abatement strategy. As expected of a structure of this age, asbestos was found in several locations. Staff received an estimate of $12,000 for abatement costs from E. Luke Greene and Company. In addition to the concerns identified above, broken windows have allowed for pigeons to freely access the structure. The second and third floors have been used for roosting sites and will require professional cleaning. A quote of $26,000 has been secured for the sanitizing of the roosting sites. This also includes the removal of a black mold condition found in an area on the east side of the first floor.  Special City Council Meeting September 23,2014 Page 3 of5 Access to adequate parking has been an obstacle to the sale of the building. To address this issue, staff has been in contact with the Norfolk and Southern Railway regarding the potential lease of surplus railroad right-of-way adjacent to the property. To date, Norfolk and Southern Railway has responded favorably to the discussion of a lease. The curuent owner is considering the option of disposing of the structure for its salvage value. A concern has been expressed by several members of Council regarding the historic value of this structure and the desire for it to remain as part of our Downtown. This is especially so in light of its location adjacent to the "Bristol -A Good Place to Live" sign. If purchased, there are several potential uses for the structure. A public use for the building could include an indoor farmer's market on the first floor and a business incubator on the second and/or third floors. Potential funding sources for improvements to the property could be found in grant assistance from the Department of Agriculture, Small Business Administration, Rural Development Agency, and Community Development Block Grants. If a private use for the building is prefered, proposals could be solicited for potential uses by interested parties. This method of preserving older buildings in our Downtown was successfully used by the City when the old H.P. King Building (now 620 State) was acquired. Some costs, such as new windows, may be deferred until such time as the future use is determined. In addition, the necessity for remediation of the dry cleaning service chemical release vapor is unknown at this time. Funding is available from the reserves of the General Fund for the purchase of the property and appropriate repairs which in total could be approximately $640,000. In addition to the above costs, the former agent representing the seller has requested a compensation of $4,000 for their involvement in the sale of the property. Staff recognizes their efforts in bringing the purchase forward and feels that their request is reasonable. The terms of the Commercial Purchase and Sale Agreement require the purchase of the property to be hnalized by October I't. The agent advises that the seller has a substantially higher offer for the purchase of the property for its salvage value and indicates that an extension of the agreement will not be possible. Vice Mayor Keen asked which items should be immediately addressed if the building was purchased versus the ones that could be delayed. His concern was the ultimate cost of the project that the City could incur without a known use at this time. City Manager Sorah stated that the roof replacement, boarding of the windows, sanitization of the building, and treating the vapor issue be conducted, if necessary. Mayor Powers discussed being the owner of a membrane roof and the problems that could occur to the structure if the roof was damaged further during the winter months. She also discussed the significance of the building historically and to the possible expansion of the downtown area. She discussed several possible uses and economic incentives that could possibly be utilized to redevelop the property.  Special City Council Meeting September 23,2014 Page 4 of 5 Councilman Young stated that his preference was for the building to be used for private purposes first. While he recognizes the historical value to the property, his concern is that the overall costs of the project may exceed its curent value. The difference in Council serving in a governing capacity versus a developer role was discussed. Councilwoman Feierabend stated that preservation of historical buildings is a practice of many governments across the country. She believes that this is a rare opportunity to expand the downtown footprint and the redevelopment could assist with the overall economic development of the City. Vice Mayor Keen stated that while this project was important that other structural related projects were also of importance, such as the construction of a new middle school. He stated his support for purchasing the property. However, he requested that repairs or other costs be limited until the future use of the building is determined. Mayor Powers asked if a member of the audience would like to speak on this issue. None were noted. Councilwoman Feierabend moved to approve the Resolution and to pay the agent compensation of $4,000, and Councilman Keen seconded. The motion passed by the following roll call vote: Vice Mayor Keen Yes Mayor Powers Yes Councilman Young No Councilwoman Feierabend Yes CITY COUNCIL COMMENTS: Councilwoman Feierabend mentioned that opportunities, such as this project, come up unexpectedly and must be considered when they do. She expressed her support to raise the property tax rate to provide funding for the new middle school. She also requested that staff check to see if the property is part of the 1998 historical survey of buildings. Mayor Powers mentioned that it was to the benefit of the City to evaluate the land use of historical versus non-historical properties. She stated that the new school facility needs to also be addressed. She discussed the selection of a site by the School Board and the potential of additional funds from the next Sullivan County property reappraisal.  Special City Council Meeting September 23,2014 Page 5 of5 There being no further business, the meeting was adjourned at 12:50 p.m. Lea Powers, Mayor City Recorder