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Item No. 14 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: SALE OF CITY PROPERTY <br />DATE: January 5, 2016 <br />BACKGROUND: The City Council directed the City staff to auction off City property located <br />at 811 Bonham Street (old Police building) and 616 W. Washington (old Health Department <br />building). The Health Department building is jointly owned by the City and County. The County <br />is agreeable to the sale of the property. Rene Bates Auctioneers was contacted about the <br />information necessary to auction the property. <br />STATUS OF ISSUE: City staff has produced the required contracts for sale, produced an aerial <br />map, and has obtained updated surveys from Chaney Engineering showing all easements and <br />improvements on the property. The legal descriptions may need to be updated based on the <br />recent survey. Deeds for the properties have also been located. We had expected to start the <br />auction in October and have it end in November. However, serious asbestos problems exist in <br />both buildings. In the interest of full disclosure to potential bidders, the extent of the asbestos <br />contamination and related costs to abate and/or demolish the buildings needed to be determined. <br />Both buildings have had abatement inspections, and the staff is currently waiting on estimates on <br />the cost of abatement and demolition. Without these estimates, it is unlikely that any bids could <br />be obtained. <br />BUDGET: Not affected by this report. <br />RECOMMENDATION: Information only. No action required. <br />