City gets $500,000 offer on property
By Matt Caulder
Published in News on May 8, 2013 1:51 PM
The city of Goldsboro has received an offer on the property located at 2406 E. Ash St., where the former Arts Council of Wayne County building is currently scheduled to be demolished starting May 20.
The offer of $500,000 is for the property without any buildings on it.
The City Council discussed the bid at the May 6 meeting and decided to put the bid out for the upset bidding process, which requires the bid be publicly advertised for 10 days without a higher bid coming in. The city will thendecide whether to accept that bid.
To upset the current bid, an offer must be at least 5 percent higher than the current highest bid.
City Councilman Chuck Allen said he would like to get more for the property than the $500,000 offered.
City Councilman Gene Aycock said he was not opposed to putting the call out for another bid after assurances from City Manager Scott Stevens that the council was not required to accept the offer at the end of the upset bidding process.
The city paid $500,000 for the property and the building in July 2011, which allowed the arts council to move to its current location in downtown Goldsboro. The city had planned on turning the building into an Air Force museum.
After spending $163,500 on consulting, city officials found the museum would cost an estimated $7 million to finish, and without private dollars supporting the project. that it would not be feasible.
Allen said the city should demolish the building and sell the property and take the hit on the budget now instead of dragging out the process.
City Council members were unsure whether the property would sell with the building on it at the time they decided to have it demolished. Council decided to put the property on the market while putting out a request for bids on the demolition.
City Council members voted to accept a bid for the demolition of the building for $197,000 which is set to begin May 20.
The demolition covers the asbestos abatement, demolition of both the building and silo structure on the property and filling in the fountain to make it level with the rest of the lot.
Only the parking lot and brickwork around the silo structure will be left.
In addition to the other costs, the city paid $3,000 in January to secure the option to purchase two adjacent properties to 2406 E. Ash St., which ran out in March.
So far, $863,500 has been paid for the acquisition, consultation and subsequent demolition of the structures on the property at the corner of Ash Street and Spence Avenue since its purchase nearly two years ago.
If the city were to sell the property for the offered price of $500,000, that would leave loss of $463,500 on the project.
The most recent appraisals of the building show the value at $455,000 with the structures on it and $518,000 without the structures.