St. Marys to acquire properties

ST. MARYS - City officials plan to borrow internally to pay for new property acquisitions including the $2.5 million purchase of land northeast of Memorial High School and the $325,000 purchase of downtown properties.

In late February, council members approved purchasing 147 acres of land northeast of Roughrider Stadium along Shipman Road for about $2.5 million. Earlier this month, they approved the $325,000 purchase of several downtown properties on West Spring and South streets as the site of a new city office building.

City officials plan to borrow from different city funds to pay for the properties. According to an ordinance introduced on Monday, the city would transfer $1.325 million from the electric fund and $1.5 million from the refuse fund into the general fund, and then move it into the city's capital improvement fund. A total of $2.825 million, equal to the combined costs of the Doseck and Schanz property purchases, would be transferred. The transfers were supported by Mayor Patrick McGowan and city auditor Douglas Riesen, according to city safety and service director Greg Foxhoven.

The city reportedly will purchase the Doseck land on Shipman Road as part of a long-term strategic plan on behalf of St. Marys City Schools. Superintendent Bill Ruane has since stated district officials in cooperation with city leaders plan to purchase land incrementally on the south side of Shipman Road as other district assets are sold. Property not purchased by the district could be used for housing or for city youth sports and recreation, according to city officials.

The downtown properties on Spring and South streets were acquired to allow construction of a new municipal office space. The current office at 101 E. Spring St., reportedly suffers from various issues including water leaks. City officials have said they felt they must maintain a downtown presence with a new office.

In other business, council members passed under rule suspension a resolution that could allow the sale of an empty lot in the Freewalt Way commercial subdivision for less than its initial asking price.

The initial asking price for Lot 1 of the Freewalt Way subdivision was $160,000, but a local business owner has reportedly offered $75,000 for the lot. Foxhoven stated Monday that the city's goal wasn't to own empty lots but to have the lots be used.

Monday's resolution lowered the sale price of Lot 1 to $75,000, provided payment is made in full at closing with no deferment. If payment is deferred, the price would remain $160,000.

The reduced price also hinges on whether a facility is built on the site within a year of the transfer. Further deferred installment payments of up to two years are permitted with appropriate security, according to the resolution.

The resolution also allowed Lot 4 of the subdivision to be split into smaller parcels and for a discounted price depending on whether payment was made in full at closing or deferred.

Council members also,

• heard first reading of a request to rezone a 0.764-acre strip of land south of the Freewalt Way subdivision.

• heard Foxhoven say the old city water plant would be torn down by the end of the week. Work crews were going through the building to remove anything that could be reused or recycled. An open house at the new water plant will be scheduled in April or May. Foxhoven said city council members and residents should have a chance to see the city's largest-ever capital improvement project.