Columbus Convention and Visitors Bureau employees are working out of boxes. The three full-time and three part-time workers had already packed, ready to move into their new offices weeks ago, when plans hit a snag.
The city and county boards that govern the CVB are seeking a state attorney general”s opinion on whether or not they, legally, can approve the $734,881 price tag, since it is more than $100,000 higher than the appraised value.
State laws prohibit city and county governing bodies from purchasing real estate for higher than assessed value. Meanwhile, the CVB already has paid $224,000 toward the property, and contracting company West Brothers Construction expected to have closed the deal by now.
“We”d like to get it closed out, but I think everyone is moving toward that end,” said Ronnie West of West Brothers. “It”s ready to move in when they”re ready to move in.”
”It”s really for entertaining”
The 4,000-square-foot space in a new building at College and Third streets behind the Tennessee Williams Home and Welcome center boasts a main reception area with about 2,000 square feet of space.
“We could easily have 200 people in here at one time,” said Nancy Carpenter, interim director of the CVB.
Last week, the CVB welcomed a tour group of 50 people, and they had to stand outside of the welcome center to wait use a restroom, she noted.
“It”s really for entertaining,” Carpenter said, noting the CVB expects two motor coaches, each with about 50 people, in the coming weeks.
And for the past two years, Columbus has hosted up to 1,000 soldiers from throughout Mississippi, for deployment-readiness events. Due to lack of space and adequate city or CVB facilities, the visitors bureau hosted the weekend of events at Lee Middle School.
“We”re limited in that capacity, but not in the desire and not in the ability,” Carpenter said.
The reception area can be divided into two rooms by a set of sliding doors. Behind the reception area are five offices, including an audio visual room for presentations and a break room. The space also includes a large storage area with built-in shelves.
In the CVB”s current offices on Seventh Street, which is rented from the Tenn-Tom Water Development Authority, there is no space for storage.
And though the new offices are finished with custom furnishings, audio-visual equipment and other touches from Penny Bowen Designs at a cost of $240,977, the cost per square foot ($183) is in line with current projects, said City Attorney Jeff Turnage.
The CVB plans to seek its own appraisal. The initial appraisal, for $600,000, was requested by BancorpSouth, which is financing the remainder of the cost.
“If the CVB”s appraisal comes in as we hope, then I think that will take some of the pressure off this,” Turnage said.
“My sense is that nobody wants to void the contract,” he added. “I think they just want to be assured that they”re not making a legal mistake by approving it.”
City, county ”concerned”
“We”re concerned, the city and the county both are concerned, first off whether or not the CVB board (legally) entered into a contract to buy that office space without prior approval from the council or the supervisors,” said Board of Supervisors President Harry Sanders. “The other issue is they also signed a contract to pay more than the appraised value for the property … We need to know if we can legally approve the purchase of real estate that is appraised for a lesser value. If the CVB can do that, legally, then maybe the Board of Supervisors will approve the purchase. If we can”t legally do that, then we can”t approve it.”
Stewart Stafford, who appraised the property, said it is not unusual when properties are “built to suit” for the assessed value to be less than the asking price.
“(The appraiser) is not saying what it”s worth to this specific user; you”re looking at what it”s worth on the open market,” Stafford said.
Among the elements driving up the cost are “high-dollar flooring” and “high-dollar finishes” in the reception area, Stafford said.
The building also features items “not typical to office buildings,” such as a sprinkler system, built-in cabinetry, full kitchen, custom shelves and a heavy-duty heating and air system, so the space can be cooled or heated quickly.
“You have to pay an engineer to do all that,” Stafford said.
He also said appraisals can vary widely.
“It”s a professional opinion, but it still is an opinion,” Stafford said. “Somebody else might have a very different opinion. I”ve seen properties where a second appraisal was close, and I”ve seen one where there was a pretty good difference.”
Nothing ”negative”
The $224,000 the CVB has paid thus far is not refundable, but Carpenter and West are confident it won”t come to that.
“There”s not been anything negative from anybody. It”s just a matter of trying to work through the problem we”ve got,” West said.
“We”re just anxious about moving in,” Carpenter said. “It would be a wonderful presence for Columbus, to have the Tennessee Williams Home as welcome center, but to, when they have a motor coach, to have a conference room (for them).”
The new building plays into a master plan for the entryway to downtown, explained developer Mark Castleberry, complementing the newly renovated Tennessee Williams Home and Welcome Center, plans for a handsomely landscaped neighboring art park and a soccer complex and park slated for completion this fall.
The entire building is about 18,500 square feet, including a 4,700-square-foot space opposite of the CVB offices, and eight condominiums upstairs. The condos average about 1,100 square feet; five have been sold.
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