The Cottonwood City Council voted 5-2 on Sept. 3 to begin the process of selling the Rough Cut building at 635 N. Main Street, which the city purchased for $2.95 million in October 2021 with the intention of converting it into a new city hall.
“The city was recently approached by several parties that had expressed some interest in actually purchasing 635 North Main Street,” Public Works Director David Hausaman said, explaining why city staff were seeking direction on the matter.
Staff have prepared a 30% complete design for buildout of the Rough Cut building that would provide offices for 48 current and 23 anticipated future employees, plus Council Chambers, at an estimated cost of $22,872,376.
That estimate does not include the purchase price of the property, an additional $1,435,700 for architectural services or $412,360 spent on architectural services to date.
Alternatively, staff have estimated the cost of building a new 25,222-square-foot city hall on city property, either at Riverfront Park or behind the former city hall building at the Old Town Activity Park, at $20,075,570. Hausaman noted that the council previously rejected two alternative options for a phased buildout of the Rough Cut building that carried cost estimates between $15 million and $20 million.
“This has been working really well as the Council Chambers and I don’t know what a $17 million building would ever be used for if it’s not this,” Councilwoman Lisa DuVernay said. “If we have people who are wanting to actually purchase that, I think it’s an opportune time.”
“If we have other opportunities and people that are interested in that other building, we need to jump on that before that opportunity passes and put that money toward building something that works out better for what we need,” outgoing Councilwoman Helene Kurot said.
“I believe back in March of 2021, when it was appraised, it was appraised at about $4.6 million,” Hausaman said when asked about the value of the property.
“I would think that we would want, obviously, the highest amount we could get for that property.” Hausaman also told council that state law requires a special election for municipalities to sell property valued at more than $1.5 million.
City Clerk Tami Mayes clarified that there would not be time to place a sale proposal on the November ballot, as “it has to be 90 days in the future,” and estimated the cost of the special election would be $30,000.
“The new city council can do what they want. That’ll be on them to figure out how to pay for it.”
Cottonwood City Councilman Michael Mathews,
who will leave council in November following his defeat by Ann Shaw in the 2024 mayoral election
“Sell it. Just go ahead and sell it … recoup our money,” outgoing Councilman Michael Mathews said.
Mayor-elect Ann Shaw suggested during public comment that building out “might be the best option. It’s the most expensive but in the long term … that building will still be standing 50 years from now … It’s a good idea, an expensive one, but a good idea right now to go ahead and build this thing out and create the spaces that we need.”
“How are we thinking about selling a building when we don’t know the current value? Have these buyers been vetted?” Sharon King asked. “We should know all the variables before there’s a vote on selling city property.”
“Working in a partially finished building is not the end of the world,” Cathy Ransom said. “If we have extra space, what if we put a museum in there?”
“I’d love for the new council to look at this with fresher eyes,” Vice Mayor Debbie Wilden said. “I don’t think we should sell it for several reasons.”
“Rough Cut definitely has a lot more space than what the city projects it’ll ever use,” acting City Manager and Utilities Director Tom Whitmer said.
“The new city council can do what they want,” Mathews said. “That’ll be on them to figure out how to pay for it.”
Mathews then made a motion to direct staff to begin the process of placing the building for sale, seconded by DuVernay and supported by Kurot and Councilmen Stephen DeWillis and Derek Palosaari. Wilden and Mayor Tim Elinski were the dissenting votes.
Shaw defeated Mathews in the 2024 mayoral race on July 30. Shaw will be sworn in after the Tuesday, Nov. 5, general election, when Mathews, Kurot and Palosaari will leave council; Kurot lost her reelection bid and Palosaari did not run.
DuVernay faces a recall vote on the Nov. 5 ballot against former Cottonwood interim Police Chief Chris Dowell.
