12 - LCAD request to approve the purchase of the downtown Peoples Bank Building

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Item No. 12 TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: LAMAR COUNTY APPRAISAL DISTRICT BUILDING DATE: May 31, 2019 BACKGROUND: The appraisal district has insufficient room in their current location, which consists of less than 6,000 square feet and sometimes inadequate parking, security, and privacy. In response, they have been looking around for quite some time for more appropriate space of approximately 10,000 SF. Most recently they have considered the Peoples Bank building in downtown at the corner of 1St SW and Grand (35 South Plaza). That building will become mostly vacant within the next several months as Peoples consolidates all of its operations and offices at Collegiate & Lamar. STATUS OF ISSUE: At its regular meeting of May 29, the LCAD board, including city representative Ken Kohls, voted to recommend to their customer jurisdictions approval of a purchase of the downtown Peoples Bank building. Purchase price for the five -story building is an amount not to exceed $625,000, plus closing costs. Paved parking to the west is also included in the proposed purchase. The resolution passed by the board also calls for the purchase costs to be financed. Eleven jurisdictions use the LOAD; eight (or 3/4) must approve the purchase for it to go through. BUDGET: NA RECOMMENDATION: Approve of the real estate purchase.