Staff Writer
WASHBURN — Approximately two dozen citizens turned out for a special town meeting Sept. 14, casting their vote in opposition to the town purchasing property on the Washburn Rd., once home to Griffin’s One Stop. Council had sought approval for the purchase, noting it was likely the only way the town could recoup taxes and funds loaned to the former owner. Councilors present for the meeting included: Chairman Mike Umphrey, Kermit Fuller, Jeff Wark, Keith Brown and Fred Thomas. Also present were Town Manager Bev Turner; Lisa Mette, clerk; and moderator Fred Flewelling. The Council sought voter approval to purchase the Washburn Rd. property for just over $50,000, plus any necessary and reasonable closing costs. Council indicated once the town owned the property — assessed for tax purposes at approximately $125,000 — it would then put it up for sale, with the asking price set high enough to cover what the town was owed, including about $1,400 the town spent to winterize the structure.
The session began with citizens voting in favor of letting Andy White, a Wade resident and Washburn business owner, the opportunity to speak on the proposed purchase. White, owner of White’s Service Station, spoke from a personal perspective on the costs involved with cleaning up a site that’s been used as a gas station and the difference in clean-up costs, depending on whether you replace a tank or remove the tanks completely.
“I know good things could come of this but a bank site assessment could get quite expensive. I’ve had one done on my own station,” said White, noting any number of things could go wrong, once the town owned the property. “The property may not sell as easily and quickly as you hope. Clean-up costs could begin at $15,000 and go up from there.”
“The Council just wants to protect the town’s money. Art Griffin received money from our revolving loan fund — about $48,000, then there’s taxes back to 2007. All we’re trying to do is recover money owed the town,” said Umphrey, adding that recovering the funds from the prior owner wouldn’t be possible, since the matter has gone through bankruptcy proceedings.
When asked by one citizen how much was in the revolving loan fund account, Council members couldn’t give an exact figure.
“The loans have been in effect for about 20 years, since we received a government grant for development in the community,” said Umphrey.
Council estimated the fund started with about $600,000. When asked how much remained in the account, it was indicated the balance now was approximately $50,000. When citizens asked who the money had been loaned to over the years and why it had not been repaid, Umphrey said the present council didn’t know the answer and that past councils had been responsible for overseeing such disbursement.
Several residents spoke during the meeting, expressing their disapproval of the proposed purchase and agreeing “the town should not be in the real estate business.” Citizens expressed concern over the property sitting idle once purchased by the town, with no taxes paid, and that it would be better to allow the bank to sell the property to someone who would pay taxes.
“All previous taxes were wiped out with the bankruptcy. The property would remain tax exempt until we sell it. Once the purchase agreement’s signed, we’d put it up for sale the next day,” said Umphrey.
A woman in the audience questioned how long city officials would be willing to sit on the property, given the current real estate market.
“Half the houses in town are for sale,” she said.
White asked councilors how they’d pay for cleanup at the site, should such be deemed necessary.
“There’s grant money available. I’m not sure how much we’d get, but we could apply,” said Councilor Keith Brown.
Councilor Fred Thomas said he was “personally comfortable” with the town purchasing the former gas station.
“The town has to do something to recoup funds,” said Thomas.
Umphrey said the Council had the town’s best interest at heart in requesting authorization from the citizens to purchase the property.
“We felt we had to protect the town’s money. It makes no difference to us” whether the town buys the property or not, said Umphrey.
By the end of the meeting however, those in attendance weren’t convinced that the purchase was a good idea, giving several reasons for opposing the measure, including poor real estate activity in the area, clean-up costs and the cost of maintaining the building and site until the property sells, as well as the fact that allowing someone else to purchase the land and building would mean the property would start generating income through property taxes. Agreeing that purchasing the property would be too risky a venture, citizens told the Council they would not support the idea by casting their votes by a show of hands in opposition.
