White Salmon City officials will try to take another 30 days to examine a downtown three-story residential building before finalizing a purchase agreement, signed last October, citing a lack of information from consultants assigned to the city initiative to undertake ownership of the house and prepare it as a community center and “third place” for residents.
White Salmon Mayor Marla Keethler said the owners of the house were supportive of taking the extension, which requires both parties to sign off.
City officials agreed to a sale price of $1.5 million for the purchase of the property in October. Included in the agreement was a set period of 90 days to perform any inspections, appraisals, and counseling on the project. That period is set to expire April 18, with the city locked into the purchase, unless both parties agree to the 30-day extension. Should the extension not be approved, the council meeting on April 6 will decide the fate of the Walker House purchase barring a special meeting closer to the deadline.
Councilors were left with questions unanswered after city officials provided an update of the tasks accomplished during the due diligence period.
City officials presented cost estimates for repairs coming out of a structural engineer and home inspection report. City Administrator Pat Munyan said costs associated with the entire list of repairs ranges from $195,000 to $492,300. But Councilors Jason Hartman and Jim Ransier told the city that more information was needed, especially an examination of what updates are needed and which ones are not needed for code compliance.
A 15-year mortgage on the house with 2.25% interest rate would cost the city nearly $119,000 per year, City Clerk/Treasurer Jan Brending said. No funding sources have been secured for the project, she said.
As previously discussed in October, the city also presented a business plan for the building, prepared by Executive M.B.A. student Jill Catherine. In the plan, which was made for demonstration purposes as well as for Catherine’s senior capstone project, the house would be converted into an ice cream shop, wedding venue and community gathering place, which could employ high schoolers and raise revenue for the community. Under the plan, the building would be managed under a non-profit organization.
“This is just one way it could be a multi-service nonprofit organization with a mission to enrich the lives of residents and visitors through hosting programs, events and services at the Walker house,” Catherine said.
Keethler affirmed the vision for the building during the meeting, saying that it would serve as a “creative economic development approach” by keeping the building operational, saying it would help to attract business and further economic opportunities.
Despite the vision for the building, Councilor Ashley Post expressed concern over the project. She said she had heard from residents that shared they were not certain that the city could manage a project with a budget the size of the city of White Salmon.
“I absolutely love this vision and this dream, and I’ve long desired a gathering place for the town. And I particularly love the idea of honoring Margaret,” Post said. “I feel like there’s so much unknown, and there aren’t any solid plans in place. And so, to me, that feels like a bit of a gamble.”
Hartmann told the board that despite the fact that more information was needed from contractors’ reports, he was comfortable with the purchase.
“Anyone who’s gambled on White Salmon real estate in the last 20 years has done quite well,” Hartmann said. “It’s not like the debt service that we’re getting is pouring money down the drain.”
There was discussion on how much the city would actually be spending on debt per year with a business running inside the building, but without much more information to work off, the city is left with educated guesses.
They also discussed contracting with an appraiser who is expected to take both inspection reports previously completed and theoretical business plan, take that information, and create a “very preliminary cost for…. The things that we would have to do to make that property usable as a public space,” Brending said.
Brending said putting the building on the state historical register opens up a number of grant opportunities for potential improvements to the building.
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