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Frostburg staff outline demolition loan, timeline and emergency procurement for Nickel Building
Summary
City staff outlined a proposed $143,000 city loan and an emergency procurement to demolish the deteriorating Nickel Building, with a target to have the structure down by July 4 and a low bid of $114,000 from a local contractor.
City staff described terms of a draft demolition and loan agreement with Larry and Megan Guthrie, owners of the Nickel Building, and asked council members to note the plan prior to formal approval at next week’s meeting.
Staff said Briarside Construction provided the low demolition bid at $114,000; landfill and incidentals were estimated at about $29,000, producing a proposed loan principal of $143,000 at a 4.75% interest rate over 15 years. Staff said that if actual landfill and incidental costs are lower than the estimate, the owners would not be held for the full principal amount under provisions in the draft agreement.
The draft also includes a conditional $40,000 forgivable portion of principal after approximately 11 years of timely payments, subdivision of the property to allow the city to own roughly 12 feet of frontage for a small parklet, and options for the owners to pursue rear-lot parking or other redevelopment behind that frontage. Staff proposed filling the basement and stabilizing the lot after demolition and possibly pursuing grant funding for masonry screening work.
Because the project timeline aims for demolition by July 4, staff said they used emergency procurement procedures and collected three written quotes rather than a full sealed-bid process; staff requested council support of emergency procurement at the next meeting. Staff noted input from the historic district commission seeking “an homage” to the building (plaque or similar), and said the commission accepts demolition given the building’s condition. No formal loan agreement or demolition contract was approved during the work session; staff said contracts are in the owners’ and city attorney’s hands and will return for council action at the next meeting.
