Chanute stalls on offer to purchase building

Chanute city commissioners failed to approve a deal Monday evening for the sale of an industrial building after negotiating with a buyer last week.

The proposed deal to sell the building at 615 W. Cherry to Bridgewood Custom Cabinets failed 2-2 Monday evening.

Potential buyer Jim Caldwell of Hi-Lo Industries and Bridgewood increased his offer on the building to $500,000 and negotiated with commissioners to cap credits for equipment and job creation.

Caldwell previously offered $350,000 for the building, and sought an equal match of credit for the cost of equipment he planned to purchase this week, setting a date limit for the offer. Caldwell also sought an incentive of $5,000 for each new job created. They agreed to cap the equipment credit at $400,000, with the job creation credits covering up to the rest of the amount for the building.

Commissioners Phil Chaney and Randy Galemore voted against the deal, and Commissioner Tim Fairchild abstained because Caldwell is a banking customer of his.

Chaney said part of his concern was a previous vote to get a formal appraisal on the building. Galemore agreed on that point, and said the job and equipment incentives take the investment to zero.

“We’re giving it all back,” Galemore said.

“My main thing is job creation,” Chaney said, noting that the commission owed it to earlier potential buyers to get an appraisal.

“I want to know what it’s worth and what we’re getting into,” he said.