The Salem City Council has rejected all three bids received for purchase of the Save-a-Lot building because they were too low.
Joe Wagner of ATV’s and More bid $1 with the intention to utilize the building for a youth center. Gerald and Angel Molenhour of Molenhour Power Supply bid $1,998 with plans to relocate their business with the front portion used for retail and the rear for service. Paul and Lynn Reim bid $60,000 with plans to relocate and expand their business Sterling Avenue.
Mayor Nic Farley says the city needs to do more homework before deciding how to dispose of the building they paid $285,000 with the idea of it becoming the new location of the police department. A decision was made to sell the building as surplus in the spring after it was deemed as not a good location for the police department.
“Want to make sure we are doing the right thing. I think we rushed into this originally I wasn’t in favor of us purchasing the building. So when we sell it I want to make sure we are doing the smartest thing. I just didn’t want to accept a bid without doing some more research and getting a proper assessment of what the building is worth and having some of these businesses tell us what their estimated sales tax revenue might be.”
Gerald Molenhour thinks the city council is not looking at the situation properly with the work needed to be able to utilize the building.
“Its over a $1-million project. Who is going to give $300,000 and then spend another $700,000 to fix it up. We are in a market where most businesses are competing against the internet. Brick and mortar stores are struggling. We have businesses like I run that are closing everyday.”
Salem Economic Development Director Lea Dellicarpini expressed her frustration because there was no mention of a minimum bid and she had worked with the businesses who wanted to expand their operations in the city. She noted there were advantages to the city, other than price, in getting the building back on the tax rolls and from sales tax revenue. Dellicarpini also feels it is important that the council work with businesses in the community.
