Last month, the City was close to signing a deal on 1037 Boston Post Road. The property, which is leased to Lester’s, was acquired six years ago for $6.2 million with the idea of turning it into a Police/Court facility.
By Rye Record Staff
Last month, the City was close to signing a deal on 1037 Boston Post Road. The property, which is leased to Lester’s, was acquired six years ago for $6.2 million with the idea of turning it into a Police/Court facility.
Mayor Doug French said, “As of now, no terms have been agreed to or are expected to be agreed to for the right of first refusal in the sale of the property, but the City will continue to explore all options.”
The building was purchased by the City in the spring of 2006. Four years later, with the impact of the recession, there was no appetite for a new $25 million police station/courthouse.
City Council has explored alternative uses for the property, but as Corporation Counsel Kristen Wilson has explained, the City is not permitted to be a landlord. They must find a municipal purpose for it or sell it.
Lester’s, which sells kids, juniors, and women’s clothing, has a lease with the City that expires in February 2013. For several months, it has been negotiating with the City to purchase the building. Evidently, talks have broken down since the mayor has tabled the agenda item indefinitely.
The city recently completed the payment plan on the property, which included a $5 million balloon payment. City Manager Scott Pickup said the remaining $1.2 million that was paid incrementally was offset by rent collected.
“At some point it has a revenue impact in 2013 and beyond,” Pickup said.
Pickup said the next likely action and public discussion on the property would be in late May.
