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Minutes - 02/15/1995 Workshop TAPE READING 0001 0003 0009 COUNCIL WORKSHOP MEETING MINUTES February 15, 1995 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, FEBRUARY 15, 1995. CONVENED. At 7:00 p.m., Mayor Kirksey convened the workshop session for the purpose of discussing the status of the Salud Medical Building. ROLL CALL. Mayor Councilor Councilor councilor Councilor Councilor Councilor Kirksey Chadwick Figley Hagenauer Jennings Pugh Sifuentez Present Present Present Present Absent Present Absent staff Present: city Administrator Childs, city Attorney Shields, Community Development Director Goeckritz, City Recorder Tennant Also in attendance: Al Nunez, Salud Executive Director; Curt Arthur, Coldwell Banker Real Estate; David A. Force, Rural Economic & Community Development Service (Farmer's Home Admin); Alma Grivjalva, Fernando Fernandez; Shelby Case, Woodburn Independent. Mayor Kirksey stated that this workshop was called to discuss the status of the building and to see what can be done to repair the building rather than it being a detriment to the downtown area. She stated that the city has an obligation to treat property owners equally to get the work accomplished and other property owners have been pushed to get their buildings rehabilitated. It has been two years since the earthquake and no repairs have been made. Mayor Kirksey also distributed copies of the state's Executive Order involving the siting of state offices in downtown areas. Administrator Childs stated that the dangerous building process started 18 months ago and Salud was given until December 31, 1994 to repair or abate the building. Understandably, Salud's on-going priority has been to provide a medical facility to their clients. Staff has met periodically with Al Nunez and others to look at options which ultimately resulted in the marketing of the building last fall. The Council has deferred any action until the next meeting in order to see what the outcome of this workshop. Al Nunez stated that Salud understands their financial obligation to RECD and once the new building is started, the outstanding balance will become part of the new obligation to Page 1 - Council Workshop Meeting Minutes, February 15, 1995 1 J I TAPE READING 0339 COUNCIL WORKSHOP MEETING MINUTES February 15, 1995 RCDC. There will be sufficient equity in the new building to allow the transfer of the financial obligation. He would like to do whatever possible to facilitate someone else to save a historic building and have it become an on-going business since Salud does not have the funds available to make the repairs. He had received estimates on demolishing the building ($113,780) and on repairing the building, which included removal of the third story attic along with seismic upgrades ($165,350). Discussion was held regarding cost estimates for basic repairs to rehabilitation of building for office spaces. These estimates were as low as $70,000 and as high as $250,000 and Executive Director Nunez reiterated that Salud did not have any ~unds available at this time to even make the basic repa~rs. Salud has been trying to sell the building with the current market price at $125,000, however, they are willing to consider any reasonable offer. Administrator Childs question Mr. Nunez regarding the use of Federal Emergency Management Admn. Funds (FEMA) towards the basic repairs to the building. Mr. Nunez stated that the Salud Board had made a policy decision to use the FEMA money (approximately $67,000) towards a new building. The new facility will cost in excess of $2 million and Salud has almost reached its goal in obtaining funding for the new facility. David Force indicated that once the new building is started, RECD may be willing to release the lien on the N. Front street building and transfer the lien to the new building. If approved, Salud would then be able to do whatever they wish with the building. Salud would need to follow a formal application process to request the release of the lien from RCDC and Public Health Service. This process would take at least 30 days to complete. Executive Director Nunez suggested that, if the release could be obtained, Salud may be willing to donate the building to the city or any other non-profit organization that would be willing to make the necessary repairs. Another alternative would be to sell the property at a value of $40,000-$50,000 which would make the cost after the repairs close to the current asking price of $125,000. Councilor Figley stated that the Council is very concerned over the safety of the pedestrians and the integrity of the buildings adjacent to the Salud building. They are also very frustrated in that no efforts have been made over the last two years to make any structural repairs. Curt Arthur stated that there has been a very limited showing of the property even though over 500 contacts have been made. The primary problem in trying to sell this property is its Page 2 - Council Workshop Meeting Minutes, February 15, 1995 ... . COUNCIL WORKSHOP MEETING MINUTES February 15, 1995 TAPE READING location in addition to total costs involved to acquire the property and make the necessary renovations for an office complex. Alma Grivjalva expressed her views in seeing the downtown area as a Cultural Center. She also suggested that the community work with the 3-Valleys Project towards securing some type of funding through the foundation in an effort to revitalize the downtown area. After some further discussion on this issue, Mr. Nunez stated that he would immediately pursue the lien release with RECD, discuss different sale options with Mr. Arthur, and also contact a bank for a commercial loan to do the repairs. He also stated that he would keep staff advised as to how the various options are progressing. 2400 Based on the intentions of Mr. Nunez to pursue other options, it was the consensus of the Councilors present that they would delay any action on this issue for another 30 days from the date of the next regular meeting with a status report to be presented at that time. Mayor Kirksey reiterated that Salud provides an exemplary service to the community but an obligation exists to get the building repaired as soon as possible. The workshop concluded at 8:28 p.m.. APPROVED ~- dJ~1 N CY A. ~SEY, MAYOR ATTEST /17u-~ 7~ Mary T nant, Recorder City of Woodburn, Oregon Page 3 - Council Workshop Meeting Minutes, February 15, 1995 T 11 I