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  The Challenge of Meeting the Needs of Edgefield County Government Editor's note: This document was provided to those attending the May 6 County Council Meeting and was signed by all five members. web posted May 7, 2008 PSA – In recent months the Edgefield County Council has been considering the possibility of acquiring the building and property which has been occupied by Calliham’s TV and Furniture Store at the corner of Penn and Railroad Streets in the Town of Edgefield. The Council has studied this matter carefully and has acquired an option to purchase the property. We are pleased to provide the following details of this proposal to the citizens of our County. Background: A number of county and state offices were lost in the Neighborhood Center fire last summer and some permanent solution had to be found to house these offices. Among the alternatives considered were to rebuild on the Neighborhood Center site or on other property owned by the County. Fortunately the Neighborhood Center building was insured and the County has already received $450,051 on this loss and will receive an additional $158,465 once construction or renovation is begun on a replacement building. As the alternatives were considered, it was recognized that the location of the Neighborhood Center, being remote from the other county offices near the Courthouse, was not ideal. Locating these offices within walking distance of the other county offices in the Courthouse complex would be much more convenient for county citizens and employees alike. Thus the council undertook to look at other properties adjacent to the Courthouse complex. The only such property which could meet the needs of the county was the Calliham property. This property consists of almost one acre of land, a 13,000 square foot retail store building (with 9,000 square feet on one level and 4,000 square feet on another level) and a 7,500 square foot warehouse. While it is estimated that the current need for offices is only about 4,000 square feet of space, your Council recognizes that as our County continues to grow, so too will the need for more office space. The additional 9,000 square feet in the Calliham building should become very useful in the not too distant future. The Proposal: When we first approached Mr. Calliham, he indicated that he was not ready to retire and wanted to continue to operate his business for several more years. Of course, no one wanted Mr. Calliham to close his business until he was ready to do so, but it was also recognized that the county’s immediate needs were only about 4,000 square feet. After some discussion, it was proposed that Mr. Calliham sell his property to the County and lease back the original upper building consisting of approximately 9,000 square feet, together with the adjacent 7,500 square foot warehouse, but vacating the lower 4,000 square feet of the store building which he had added in 1971. Mr. Calliham agreed to this proposal whereby the County would have an option to purchase the property for $450,000 and he would lease back the original store and the warehouse for $2000 per month for one year, with four one-year renewals. Thus, under this proposal, Mr. Calliham will be able to continue to operate his business for at least five more years, the County will have immediate access to 4,000 square feet of space and will ultimately get the 9,000 additional square feet of space when Mr. Calliham retires. Due Diligence: Since acquiring the option on the property, we have had the property appraised by McNeill Appraisal Service who valued the property at $425,000. As a result of this appraisal, Mr. Calliham has agreed to amend the purchase price to the appraised value. Valuing properties like this one is not an exact science and one should not be surprised if two appraisers arrive at different values. However, we have carefully studied Ms. McNeill’s appraisal, believe that she has done a thorough job and are confident that her appraised value is a fair one. The real issue here is what is the property worth to the County? This property is uniquely located to meet the County’s needs. Moreover, the 13,000 square foot building has substantial value to the County if the County is able to use it during the coming years, as we anticipate we will. And, as discussed below, the rear portion of this property is also uniquely valuable to the County for the purposes of expanding the Law Enforcement Center, perhaps more so than the building on the front. After acquiring the option to purchase from Mr. Calliham and prior to first reading by Council, we have had several studies of the building done, including an inspection by Gerald Hargrove Inspection Service, a wood infestation report by Horne’s Pest Control and an environmental assessment of the property by CSRA Testing and Engineering. The Plans: During the last several decades our County has very successfully renovated/rebuilt several buildings in the Courthouse complex, including the Courthouse itself, the Magistrate’s Office, the Administration Building/Archives and the County Council Chambers. In each instance, the County has taken an older building, preserved it and completely renovated it, respecting the traditional architecture within our historic county seat while making the building highly functional and easily accessible to the public. Our plans are to engage an architectural firm to develop plans to immediately convert the lower 4,000 square feet of this building into various offices. We will ask the architect to design these offices so that when Mr. Calliham retires and the need arises, we will be able to expand into the 9,000 square foot portion of the building without redoing what we have already done. Among the likely first occupants would be the offices destroyed in the fire and the Building and Planning Department which currently occupies space that the County is renting for $1000 per month. Other County offices may be relocated to this building as well. Liability and Insurance: Some citizens have raised the question of the potential liability which the County may incur as a landlord of Mr. Calliham. While the County would not normally want to become the landlord of a retail operation, the particular circumstances of this transaction meant that the County needed to become a landlord for a limited period. As a landlord, the County will indeed have some potential liability, but this is a risk for which insurance can be and will be provided. Parking: The Council has also carefully considered the need for parking. Parking has always been a problem in Edgefield, especially when Court is in session. No one would want to increase the parking problem by adding additional offices without also adding parking. However, twelve spaces will be immediately available to the initial 4,000 square foot space and thirty-six additional spaces can be developed right across Railroad Street on the old railroad grade which is already owned by the County. Law Enforcement Center: While the issues discussed above demonstrate the need for the acquisition of the property for the purpose of county offices, another case can be made for the acquisition of the property for the purpose of expanding the Law Enforcement Center. We have an increasing number of county prisoners and our Law Enforcement Center at times reaches its rated capacity. There is no doubt that we will have to expand this facility in the next few years. However, the County’s present property cannot accommodate an expansion. And if we are not able to expand the present facility, we could conceivably have to abandon this present facility in order to move to another site and build a larger facility, a project which would undoubtedly cost the County many millions of dollars, perhaps as much as $15 million. The rear of the Calliham property where the warehouse now stands provides an ideal area to expand our Law Enforcement Center. Owning this property will allow us to continue to use the current Law Enforcement Center (which we expanded only several years ago at a cost of over $650,000), and expand it when we have to in a few years at a relatively modest cost. If there was any doubt that the acquisition of the Calliham property could be justified on the basis of the need for additional office space, this need for expansion of the Law Enforcement Center certainly does justify it. The Neighborhood Center Property on Church Street: We are also very cognizant of the importance of finding a new use for the Neighborhood Center Property on Church Street. For many years this was the location of the Senior Citizens Center. Last year, before the fire, after many years of planning, the Senior Citizens Council broke ground on a new building which they will soon occupy. The fire at the Neighborhood Center consumed only one of two buildings on the site. The one building which remains continues to primarily house state offices. The Neighborhood Center property is in an historic residential district and needs to be comprehensively redeveloped for some use consistent with the neighborhood. However, the Council believes that the Calliham building is a better and more convenient location for County offices than this property. We believe that rebuilding an office building at the Neighborhood Center would not be the best location for County offices nor would it be a good real estate investment. We are open to new uses for the Neighborhood Center property and hope that it can be redeveloped in a way that will be consistent with the best interests of the community. Present Status: The Council has now had one reading of the ordinance to purchase the Calliham property and is expected to have two more readings between now and June 4th. At that time, assuming that no issues develop to alter the opinions of Council Members, it is anticipated that the Council will close on the purchase of the property and begin the process of redeveloping this building. We welcome your comments on this proposal and any other County matters. ©
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