The Clinton Herald, Clinton, Iowa

Camanche

October 18, 2013

Council makes offer on former pharmacy building

(Continued)

“Have we figured out how we’re going to pay for this, if the offer is accepted?” asked Councilwoman Linda Kramer, concerned that if the city uses its reserves it will end up regretting it in the future.

Roth explained that the city has accumulated an adequate reserve fund to spend the assumed $300,000 for the property and any ensuing renovation costs without compromising the city’s financial position.

“I am pretty confident that you can take it out of reserves,” Roth said. “Obviously you can spend it and obviously you don’t have to spend it.”

The other issue that came up at Tuesday’s meeting was whether the city would wait to have the building appraised until the offer is made, or to have it done prior to the offer.

Roth and Lonergan agreed that if the city chose to have the appraisal done prior to the offer, it would waste the city’s money without knowing if Richeson would accept the city’s purchase agreement.

“It’s kind of the chicken and the egg situation,” Roth said. “Which comes first?”

Although some members of the council felt reluctant to make the decision on Tuesday, there was a consensus that the decision would need to be made as soon as possible. Because of that, the council agreed and made the unanimous decision to go ahead with the offer.

“We have an offer for him prepared,” Lonergan said. “We need to get this project moving forward if we really are going to move forward with it.”

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