Estimated cost for repurposing former Whitley County jail drops to about $5 million; city awaits financial feasibility review

City staff told the Columbia City Economic Development Commission on May 13 that revised cost estimates for converting the former Whitley County jail have fallen from roughly $9 million to about $5 million by preserving some exterior walls and existing HVAC systems.

Staff said the $5 million figure covers exterior rehab, roof work and interior demo but does not include fitting out the building’s interior (furniture, fixtures, equipment). They have forwarded the revised estimate to the city’s financial advisors to determine whether the work would be feasible under the city’s statutory debt limit.

Commissioners emphasized two constraints. First, the city’s debt limit could prevent the project without creative financing. Second, the county holds a right of first refusal; if the county chooses to reclaim the property, the city’s options would change.

Staff described next steps: await the financial advisor’s formal opinion, then decide whether to pursue creative financing, market the property differently, or allow the county to exercise its right of first refusal. No formal motion or expenditure was made at the May 13 meeting.

Background: staff said the structure is solid concrete and that preservation of portions of the exterior and mechanical systems reduced the projected cost; additional savings may be possible but unknown until the financial review completes.

If the financial advisor deems a project feasible, commissioners said they will return to the commission to discuss next steps and funding options.