ASHLAND — The city of Ashland is moving forward with the purchase of the former Arthur Street school building, despite a $20,000 increase in the purchase price.
On March 3, City Council approved the purchase of 416 Arthur St. at a cost of $65,000. The Ashland County Land Bank approved a $35,000 contribution in January to assist the city in purchasing the 0.95-acre property.
Ashland lawmakers on Tuesday approved an amendment to the purchase legislation — passed March 3 — which increased the purchase price to $85,220.66 (plus all “reasonable and customary” closing costs).
Mayor Matt Miller said the city is working to settle the debt on the property.
In March, the mayor told council The Peoples Bank of Gambier has a $65,000 lien on the property. That lien was originally in the ballpark of $95,400, but Miller, along with the help of a local realtor, was able to negotiate the lien down with the bank through an attorney representing Simplified Living LLC — the current property owner.
“When we went for the closing, it was discovered that there were some unsettled debts with the bank, fees and otherwise,” the mayor said Tuesday. “After negotiation with the current property owner, we concluded that it was still advantageous for the city to have ownership of the building so we can get started with the cleanup.”
The Ashland County Land Bank has maintained its agreement with the city, Miller said, and will still contribute half of the now increased cost. The city will be the sole purchaser of the property. Once finalized, the city will invoice the Ashland County Land Bank for its contribution.
“In essence, the city’s share is $10,000 more dollars than we originally expected,” he said.
Simonson Construction Services provided the city with a $200,000 estimate to demolish the building and prepare the site for redevelopment, Miller shared in March. Next steps include discussions with the state regarding the possibility of grant funding for the project.
“I know the neighbors in that area will be thrilled because they have waited a long time to see that property cleaned up and it just continues to get worse,” the mayor said March 3.
PREVIOUS REPORTING ON ARTHUR STREET SCHOOL BUILDING
In other action Tuesday, City Council:
— approved and adopted current replacement pages to the city’s codified ordinances to conform with current state law as required by the Ohio Constitution.
— authorized the mayor to enter into contracts for the Municipal Building generator replacement project. The generator will cost $54,783.20 and installation an additional $64,660.
— approved the sale of the five city-owned acres — through the Ashland Community Improvement Corporation — to Dorm Dudes for $50,000 ($10,000 per acre).
Below is a livestream of City Council’s meeting on June 2. (Credit: City of Ashland, Ohio on YouTube)
