Weaver Building - Notice of Sale & Bid Package

The John Day City Council approved the sale of the Weaver building following a public hearing on May 28, 2019. The City will entertain sealed bids from interested buyers at the June 25, 2019 city council meeting.

The City of John Day purchased the 12,000+/- SF mixed-use Weaver building on November 2, 2017 from James L. Weaver and the heirs and/or devisees of Joan Kay Rohm. The City’s purchase price was $100,000 plus closing costs, which came to $10,282.57.

The building, located at 131 W. Main Street and consists of four commercial spaces on the ground floor of approximately 6,000 SF and eight residential spaces of approximately 6,000 SF on the upper floor. The building sits on 0.16 acres (Tax Lot 2401) and includes 0.20 acres of parking space to the rear (Tax Lot 2600), which is accessible from Bridge Street. The legal description for the property is enclosed. The building and rear parking will be sold together.

BACKGROUND

At the time of purchase, the building was occupied by four commercial tenants (Naturally Yours, etc., Karen Barntish CPA and H&R Block). The eastern commercial space was vacated in January 2018. Of the three remaining commercial tenants, two are on a month-to-month lease and one is on an annual lease through November 2019, at which point it converts to month-to-month. The building generates $1,400 per month in rental income from the three commercial tenants.

The building was inspected by Paulsen Environmental (Ontario, OR) and was identified to have generalized asbestos on the unoccupied upper floor as well as lead paint that had to be remediated as part of the City's renovation. The City secured $65,300 in grant funding through the Oregon Business Development Department Brownfields Redevelopment Fund. The city council approved a professional services agreement with Alpine Abatement Associates, Inc. (Bend, OR) on December 10, 2018 to perform lead and asbestos abatement on the property. Abatement began the second week in December and proceeded through January 2019. Asbestos containing materials were disposed of in the Crook County landfill. Paulsen Environmental performed environmental monitoring throughout the project. The final abatement cost for the City was $74,924.00.

Based on the 2018 Property Tax Statement, the Real Market Value (RMV) of the land is $32,250 and the building is $106,710, for a total RMV of $138,960.

Proposed Deal Terms

• Sealed bids must be delivered to the city at 450 E. Main Street by 4:00 P.M. on June 25, 2019. Any bids received after that date will not be considered.
• Buyers will be given the opportunity to inspect the property prior to making their offer.
• Buyers should state their proposed purchase price for the property in their bids.
• Buyers must include their proposed plans for the building renovation.
• City will entertain options for owner financing for a term and interest rate to be negotiated by the parties.
• Property will be included in the John Day Urban Renewal Area and buyer will qualify for 15% cash back on eligible improvements through the John Day Home Remodel Incentive Program.
• Terms and conditions will be documented in a Purchase and Sale Agreement between buyer and city to be finalized after the proposal is reviewed and accepted

BID SUBMISSION

Bids should be placed in a sealed envelope addressed to the John Day City Manager and should clearly identify "Weaver Building Offer" on the envelope. Bids may be submitted in person or via mail to 450 E. Main Street, John Day, OR 97845.

ADDITIONAL INFORMATION

Additional information is available on the Main Street Revitalization page and in the files below.