Sale Of Buildings To Go Before Members

Friday, January 11, 2013

— The Bella Vista Property Owners Association board voted Thursday to endorse an offer for the city to purchase three association buildings.

The membership will have to approve the offer in a special election.

The board decided to renegotiate terms after leasing the three buildings to the city the past six years. The buildings house city emergency services.

Chairman Ed Morgan said at Thursday’s meeting negotiation has been going on for 18 months. The association notified the city in early December the lease on the three buildings would increase to reflect fair market value — raising the rent to more than $14,000 a month from $650 a month.

The city then sent an offer to the association to buy the buildings for $1.8 million based on market value minus 30 percent “because of our shared interest.” The offer also deducted money for remodeling the Town Center building and because the building on Glasgow Road needs to be replaced.

The third building is on the east side of the city and houses Fire Station No. 2.

A vote of the membership is necessary to sell the buildings since they are common property. The board endorsed the offer, 7-1. The association administration will now begin work on a timeline for a vote.

Chastity Fittro, association attorney, said Thursday there probably will be another membership vote concerning an increase in association assessments. The proposed increase is $10 a month for improved property with a provision for cost of living increases in the future.

Unimproved property will retain the same rate until cost of living provisions take affect in 2015.

In November, the board examined a 10-year projection showing the association would be out of money by 2014. The board approved a budget in December for only the first quarter of 2013 and instituted a hiring freeze. Tommy Bailey, general manager, was instructed to save money whenever possible.