Minutes: Finance: 2007---Library discussion

(Ed.note: The following is the portion of the Finance Committee of Sept 2007 discussing the library expansion proposal and financing.)


Library Expansion. Wietecha gave an overview of the library expansion situation. Acquiring the current Post Office property is the only realistic means of providing for the library to expand. The expansion is not scheduled until 2010 in the capital plan, but the city has the opportunity to purchase the property now. The asking price is $200,000 which he indicated to be a fair price based on the property's capitalization rate.

Wietecha said the Post Office has a lease through December 2014. The city could receive rent to offset the purchase price until ready of the library expansion. Forcing the Post Office out of the building prior to 2014 would require helping them relocate to a similar facility. Similar to eminent domain proceedings, the city would be responsible for any relocation expenses. If rent were higher at the new facility, the city would also be responsible for the difference through the end of the 2014 lease.

In answer to questions, Kemp-Tejeda said space is already tight but the library could wait about three years before expanding. Wagner noted that using a bank note to finance the purchase would allow some flexibility for prepayment if favorable for the city. He noted that approval of the financing would enable the purchase if the negotiations on the property proceeded to the Common Council's liking.
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