A local developer has offered to buy a city-owned former school building once considered the preferred location for a proposed community center.
According to the agenda for Monday’s City Council meeting, Extreme Car Wash Holdings, LLC — owned by Rob Benedict — has submitted a bid of $100,000 to purchase a portion of the now city-owned property at 905 Maple Ave., most recently Churchill Junior High School. Benedict would buy the portion of the property located south of the existing east-west drive including the school building and all green spaces east, west, and south of the building. The city would retain the east-west drive and all the property north of the sidewalk located on the north side of the building, including the former Bateman School land and the former Churchill football field.
The purchase price would be “$100,000 as is, with all contents as of date Aug. 1, 2023.”
Developer proposes leasing building to a church
Benedict is proposing to work with the Ascent Church to lease space in the building until its new facility is constructed. According to the agenda item, Benedict has no other plans for the building. Benedict told WGIL on Thursday that he would comment on his bid following Monday’s meeting.
The Ascent Church, which has held services at the Knox County YMCA the past two years, has acquired land to build a church on Gale Village Drive near Aldi grocery store and west of McAlister’s Deli. The Ascent is “a plant” of the Northwoods Community Church that most recently had a location at 940 W. Fremont St. in Galesburg.
Churchill was once approved as the location for a community center by the previously-seated City Council, however aldermen approved an ordinance on June 5 directing staff to sell the former Churchill school. City administration says the sale of the property would eliminate the need for city maintenance of the property (i.e. weed mowing) and utility costs, and at the same time place the property back on the property tax roll.
Mayor: No rush to sell
Galesburg Mayor Peter Schwartzman said the city should not rush into a decision to sell the property.
“I don’t see the rush to sell the property in August,” Schwartzman said. “I think a few more months awaiting future bids will allow us to determine what the best bid is as well as allow the Community Center Task Force to consider Churchill in their mix of properties.”
Schwartzman said he supported listing the property to gauge what the market would bear regarding bids, understanding that the city was under no obligation to sell it to any bidder. One positive aspect of the bidding process, he said, was that it enabled the community to envision new ideas for the building and land.
The mayor anticipates additional bids to be received in the coming weeks and believes the city should seek an appraisal to determine the value of the Churchill property. The Council will consider seeking an appraisal at Monday’s meeting. It is estimated that such a service would cost approximately $1,500 – $2,000.
Fifth Ward council member Heather Acerra questions how much interest there is from outside sources in acquiring Churchill.
“Nineteen different developers and businesses were solicited regarding their interest in purchasing the property and none responded,” Acerra said.
Regarding Benedict’s bid, Schwartzman said, “I thank Mr. Benedict for his work to submit a bid and his desire to make good use of the property. I am reviewing Mr. Benedict’s bid and plan and am taking input from community members before making a final decision.”
At least 2 council members: Let’s take the offer
First Ward Alderman Bradley Hix, a vocal opponent to transforming Churchill into a community center, said he remains in favor of selling the property and is ready to accept Benedict’s bid.
“It was argued that it was free so it was a great deal for the city,” Hix said. “Since we have taken possession of Churchill it has costs the city more than $90,000. We need to get this free property sold so we can reduce the expense of having a property we haven’t used. This location does not have the support of the majority of the council to be used for the community center so there is no reason to retain it.
“I would be in favor of accepting the bid of $100,000 for the property. Mr. Benedict has agreed to allow the city to keep the north side of the property for green space. This will allow the neighborhood to enjoy the green space while still reducing the cost the city has incurred for the building.”
Acerra also is in favor of accepting Benedict’s bid.
“The city has spent $90,000 to date on this ‘free’ property,” Acerra said. “I think that Mr. Benedict is uniquely positioned to restore the building and put it to good use. My understanding is that he already has potential tenants from educational and religious associations for the property.
“I think that the city council should sell the building to Mr. Benedict and let the community center task force focus on determining what the greatest needs are for a community center and explore different options with a soft $2.5 million cap.”
Acerra notes the city of Davenport, Iowa, (population 100,000) recently built a community center for $2.8 million. The Quad-City Times reports the community center includes a half-court basketball gym, kitchen, storage, restrooms and flexible programming space.
Acceptance of bid would require super majority
According to Interim City Manager Wayne Carl, the sale of city property can occur in one of two ways. One is through a bidding process, which the city did through a public process during the months of May through July. One bid was received but was rejected at the July 17 Council meeting.
The second option is through an alternative process by which any real property, that is acquired or held by the city for any purpose whatsoever, may be conveyed to any person, entity, corporation, organization or agency, upon the City Council’s determination that such real property is no longer necessary, appropriate or profitable.
The contract for sale of any property disposed of under this division shall be presented by ordinance to the City Council and shall require approval by a vote of two-thirds of the corporate authorities then holding office. Corporate authorities include the mayor and seven council members, meaning six votes would be needed to accept the bid.
Carl said the building is still for sale and the city will continue to actively recruit purchasers for the site. Interested parties can contact the Community Development director and he will provide them the information they need to submit an offer for the building. He will also provide a tour of the building to interested parties as requested.
If the City Council votes to approve the offer it would be conditional on District 205 determining whether they wanted to exercise their right of first refusal on the property. The School District would have up to 30 days to exercise their option. If they choose to exercise their option, the City Council would need to execute a purchase agreement with the school district for $100,000.
Carl said since only one bid was received in response to the formal bid process, it is unknown if a formal bid process will be utilized again.
“A future bid could occur depending on how much interest is expressed in the building,” Carl said. “If there is a lot of interest, a bidding process would possibly be the fairest way to go.”
The former Churchill school building is approximately 90,000 square feet and the lot is approximately 14 acres. Carl said any details regarding the sale of property and the specifics of what it would include or not include, would be dependent on an arrangement that is acceptable to both a potential buyer and the city. Any such contract or bid would be voted on by City Council.
The property at 905 Maple Ave. is currently zoned Institutional. The purpose of the I District is to accommodate existing and future public buildings and recreational uses, and other uses having purposes and impacts similar to public buildings.
Acerra said she is ready to move on from the idea of Churchill as a community center location.
“I have been consistent in my opinion about Churchill since running for office and that is, I do not support it as a community center,” she said. “Estimates provided to the former City Council stated that repairs and modifications necessary to make the building viable ranged from $7.5 to $10 million. That does not include ongoing operating costs such as staffing and utilities.
“The previous city council had many ideas about potential programming and services for the building, though many mentioned were duplicative of those provided by current non-profits and agencies. The result of a survey of local non-profits showed very little interest in moving their services and programs to the building, though some welcomed the opportunity to advertise their programs, located elsewhere, at such a center.”
Green space has ‘tremendous value’
Schwartzman said he would like to preserve the green space, no matter what entity eventually utilizes the property.
“I would like to protect the green space,” he said. “If dividing it is required to protect it, then I favor this option. However, I do think the property is more valuable conjoined and this is something the city needs to consider as well.”
The mayor said he believes the approximately 8 acres of green space has “tremendous value and utility,” noting it could be used for a park, playground, a walking loop, an urban garden or outdoor theater.
Schwartzman said, “I would love to see the community be given the opportunity to imagine what is best and to raise monies — governmental and non-governmental — to assist in its chosen development.”
