City Manager Bryan Heck told commission members the additional work will make the site “shovel ready so we can move forward with the project.” The work will entail removal of remaining slabs, footings and asphalt.
No specifics were offered by officials on what might eventually be built on the site.
Credit: Bill Lackey
Credit: Bill Lackey
Commissioner Kevin O’Neill asked if the city has received word on receiving any insurance coverage associated with the fire that destroyed the building, and Heck reported they are expecting to hear back on the claim within the next 30 days.
An August fire caused smoke and water damage to the former motel, which had been purchased by the city nine months earlier at a cost of $1.7 million to be redeveloped as a shelter for the homeless.
That plan never came to fruition, city officials said, citing a variety of reasons, including a water main break three days after the purchase that caused damage to at least 30 of the former hotel rooms, according to a city document.
The city months later did not receive qualified proposals for the project after conditions of the structure were worse than originally detailed in the appraisal process. People also broke into and damaged the property in the summer, and, finally, the fire damage sealed the fate of the building.
Days after the fire, officials declared the building a public nuisance and demolished it within days at a cost of $125,000.
The fire was under investigation at the time of emergency demolition, but no determination of the cause has been announced.
City officials were asked by an audience member whether the amount approved to prepare the area for a new project will be the last money the city will devote to the investment.
Heck said, “As far as demolition and shovel ready preparation, yes, this will be the last spent. But not knowing what project may be planned for the future of the site, we cannot say whether additional money will be used.”
O’Neill had asked for the city to investigate the appraisals provided to the city that preceded the purchase of the building for use as a homeless shelter. According to O’Neill, not all of the paperwork has been received in conjunction with that effort, so it remains unknown if the city has a claim against Martin + Wood Appraisal Group, which determined the structure to be in average condition.
According to the appraisal report, Marin + Wood did not perform complete tests of mechanical equipment, plumbing or electrical components of the site as they were not required or requested by the city.
When O’Neill asked for a review of the appraisal process in September of 2023, he said, “When you see appraisals as high as these came in, which the people of Springfield feel are really grossly above what the properties are worth, they deserve to have an audit to make sure” the expenditures were appropriate. At that time, O’Neill said appraisal companies have liability insurance in case mistakes are made, and the city should try to recover any monies that are due if errors occurred.
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