Chanute city commission wants to negotiate; proposes counter offer on city-owned building

Chanute city commissioners gave a counter offer Monday evening on the cash bid for the sale of an industrial building.

The commission approved a motion to ask for $350,000 for a city-owned building at 615 W. Cherry.

Todd Morris and Lamar Eby have offered $291,000 to buy the building that they would then lease to a so-far unnamed company. Chanute businessman Jim Caldwell of Bridgewood Custom Cabinetry has offered $500,000, but also seeks economic incentives including rebates for 20 jobs created and reimbursement for equipment investment.

The offer by Morris and Eby does not require incentives. Caldwell’s offer would rebate up to the $500,000 up-front payment.

The building is currently appraised at $451,000, and the city purchased it from Caldwell for $350,000 and put $1.1 million in improvements into it as an incentive for Spirit Aerosystems, which has since been purchased by Orizon Aerostructures.

Commissioner Randy Galemore made the initial proposal for a counter-offer, suggesting a price of $300,000. He said it would show that the city is interested in selling the property.

Commissioner Phil Chaney said people will know the city would like to negotiate.