The City Council on Wednesday directed its city manager to draft a commercial real estate broker agreement by the September 12 meeting to help sell the city-owned building at 1037 Boston Post Road.
By Jon Craig
The City Council on Wednesday directed its city manager to draft a commercial real estate broker agreement by the September 12 meeting to help sell the city-owned building at 1037 Boston Post Road.
Rye bought the former CVS store next to City Hall in 2006 for $6.2 million. It rents the building to Lester’s clothing store, which has offered to buy the property for $3.6 million.
The building was purchased during Mayor Steve Otis’ administration and became a major campaign issue when Doug French challenged and defeated Otis. It was originally envisioned as the site of a new police/court facility.
“We’re at a point now of balancing real needs,’’ Mayor Doug French said at Wednesday’s meeting.
In an earlier interview, the Mayor said, “Without getting into the specific merits of the Lester’s offer, it is a solid offer and the City will seriously consider it. Yet at the same time we need to make sure we continue to do our due diligence to see what other opportunities exist. That is why I have kept both options on the table.”
The City’s lease with Lester’s of Rye LLC ends in February 2013. Wednesday, French said, “I’d feel much better if we had some resolution next door.”
Councilmember Catherine Parker said that although much attention has been given to the possible sale of the property in The Rye Record, the property needs to be marketed for sale nationally.
Councilmembers Richard Filippi and Joe Sack said that contracting with a real estate broker helps make the sale a more public process.
Mayor French agreed, saying, “We are not in the real estate business. In this marketplace, we feel its in our best interest to have a professional broker.’’
Councilmember Peter Jovanovich told Perry Schorr — of the family that owns Lester’s — that ultimately “it may prove the wise choice to take your offer.”
Schorr told the Council that he is puzzled by the urgency to go to a real estate broker now. “You’re all aware we are a good tenant, good for the town,’’ he said.
“These people have been behind closed doors for a very long time,’’ resident Ted Carroll said of the Council’s numerous executive sessions to negotiate a possible sale to Lester’s. Carroll said Rye taxpayers stand to lose millions on the property and should be given details about what could happen next.
But Jovanovich reminded Carroll that a prior Council intended to use the 1037 building for a new police station/courthouse, estimated to cost at least $25 million before “the Great Recession of 2008” intervened. “Things change, as you know,’’ he said.
“We’d love to have you stay in Rye,’’ Carroll said to Schorr, but Rye taxpayers “don’t want to take the loss because some people just want to get rid of it.”
With additional reporting by Robin Jovanovich
