The Chewelah City Council accepted an $80,000 cash offer for the property located at East Main and Fourth Street at the Aug. 1 regular meeting.
Frank Sety of Chewelah purchased the property for $80,000 even though the council had increased the original asking price from $90,000 to $95,000 at the July 18 meeting when they voted to list it with Windermere Real Estate.
The property at 306 East Main Street includes a gravel parking lot and the building Steve Weatherman rents for his chiropractic office. As part of the offer, Sety will continue Weatherman’s existing lease at $400 a month, which ends December 2012.
City Administrator Mike Frizzell said he talked to Sety about purchasing the property prior to the council listing it with the real estate agent, Steve Schalock. Since they had yet to sign the contract with Windermere, Schalock agreed to not include Sety’s purchase as part of the contract.
Frizzell explained to the council that $80,000 was reasonable considering the commission fees they would incur by selling through the realtor. Commission would be approximately 10 percent of the purchase price, or about $9,500 of $95,000.
The city has spent nearly $94,000 on the property with purchasing it in 2004 and clearing it for parking in 2005. It was purchased with money from general funds as part of the project to clean up Main Avenue, Frizzell said, and the money from the sale will go back to general funds.
Councilman Nick Lasko opposed selling the property at all because he said it is more valuable for the city to keep especially with the monthly income from the rental. However, Lasko also said if they are going to sell it they should sell it to Sety.
Councilwoman Krisan LeHew said this may be the only reasonable offer they would get for a long time.
The building needs a lot of work, Frizzell said. He also said they could use the money for matching funds necessary for grants they may receive in the future.
In other business, the council voted to refuse the only bid received for the Municipal Complex Sidewalk Project due to insufficient funds. The grant they have for the project only allows $5,000 toward design and $45,000 toward construction but the bid was for more than $70,000. Frizzell said they will look into reworking the design to make it more reasonable with the amount of funding they have available.
The enhancement grant was awarded from RTPO (Regional Transportation Planning Organization) for sidewalks, and expires after 10 years.
The next August council meeting will be Wednesday, Aug. 15 at 6:30 p.m.
By Kellie Trudeau, The Independent Staff