By By KATHIE HEMPEL / Niles Daily Star
NILES – The old post office will belong to the City of Niles once more.
A purchase agreement for the property, including the parking lot, located at 322 E. Main Street, commonly referred to as "the old post office" was approved at last night's meeting of the City Council.
"There were no public comments on the issue. It just makes sense now and at the end of the day, that's all that matters," Terry Eull, city administrator said.
This clears the way for the city to avoid paying the estimated $535,000 payable for the final eight years of the 25-year lease, for no return. The original lease was approved by a majority of council members in 1990. It was then that the building was sold to developer Earl Fielding for $1.
Mary Skinner, wife of former Niles Councilmember Osceola Skinner, purchased the property a couple of years later. She has been the city's landlord ever since.
In addition to owning the property, the city will now collect the estimated $100,000 to $250,000 in rent and taxes from the two other lessees in the building over the same eight years. Their payments, along with the rent the city will continue to pay back to itself, will allow the city to own the building and repay the money taken from the electric reserve for the purchase by 2015.
That is the year the original lease would have expired with what Eull said would be "no equity, no gain."
The City of Niles should close the deal no later than the end of May, according to Eull.
In other business, consideration was given for:
Approval of a request from the Riverfront Optimist Club in conjunction with the Lake Michigan College Optimist Club to conduct the Sixth Annual Niles Youth Performing Arts Festival in Riverfront Park on May 12 from 9 a.m. to 11 p.m. and a request from Isaac &Doris Davis Family (IDDFAR) Incorporated to conduct their annual Spring Fling and 5K run/walk in the park the same day.
Accepting a proposal from Battery Xpress of Yorktown Ind., for the purchase of 10 sets of US-2000 batteries at a cost of $3,948 for use at Plym Park Golf course.
Approving a request to purchase a compact "FireLine" water meter from ETNA Supply of Grand Rapids at a cost of $17,165 for the Water Division.
Approving a request from the Riverfront Optimist Club to conduct the Fifth Annual; Niles Blue Grass Festival in Riverfront Park May 31 to June 3 and activities including food and craft vendors, tent camping, and other requests in conjunction with the festival.
Accepting a bid of $0.752 per pound for material and manpower for the annual pavement joint/crack sealing contract from Scodeller Construction, Inc of South Lyon for a total cost of approximately $19,000.
Accepting the low bid of $111,040.50 from Consumers Asphalt of Benton Harbor for the 2007, resurfacing contract and the authorization for the city administrator to sign the contract.
Other business in addition to the approval of the purchase of the old post office in the City Administrator's report included:
Adoption of a resolution to approve a 12-year industrial facilities exemption certificate for Niles Steel Tank Company.
Approval of a request from the Transportation Coordinator to approve the emergency repair of Dial A Ride Bus number six on Feb. 28, 2007, for a cost of $5,759.06 to Randy's Auto Service of Niles
Approval of a request from the Transportation Coordinator to approve the emergency repair of Dial A Ride Bus number eight on Feb. 28, 2007, for a cost of $3,948.09 to Randy's Auto Service of Niles
The regular meeting of the council began following a public hearing at 7:25 p.m. regarding the Industrial Facilities Exemption for Niles Steel Tank Co. The 12-year exemption certificate was approved during the business portion of the meeting. All other agenda items were also approved according to Eull.