Barre City approves $3 million purchase of Morrison Road warehouse for new public works garage

The Barre City Council voted to authorize the city manager to execute a purchase-and-sale agreement to acquire 277 Morrison Road for $3 million and to submit an Allowed Use Determination application to Barre Town, clearing the way to convert the former warehouse into a public works garage.

City Manager Nicholas said the plan would relocate public works operations from the undersized, flood-prone Burnham Street site into a 58,000-square-foot building outside the flood plain. "This building in its as-is condition is worth $3,900,000 — almost a million dollars more than we are paying for it," Nicholas said in presenting appraisal and market-comparison data to the council. The city estimates roughly $2 million in site and interior work will be required to fit the building for vehicle bays, drainage, fuel and salt storage, and staff spaces, bringing an all-in cost to about $5 million.

The nut of the council's decision was operational risk and cost. Councilors were shown photos and an inspection summary of the Burnham Street facility, where parked vehicles barely fit and staff space and mechanical systems are inadequate. Nicholas told the council the Burnham Street buildings have limited staging, missing windows, no sprinklers, expired first-aid supplies and sit in a flood plain — conditions that leave the city exposed to damage and operational disruption.

The administration proposed financing the acquisition and renovations from a combination of existing funds rather than new borrowing: an interfund transfer from the water enterprise fund (planned to be repaid), $500,000 from city special-project funds or trust accounts, and $500,000 from capital reserves. Nicholas said proceeds of a planned sale of the Burnham Street property would be used to repay the water fund transfer. The council approved the purchase motion and the submission of the Allowed Use Determination application to Barre Town Planning Commission, which the manager said is scheduled for the March 19 Barre Town meeting if the council ratifies the AUD filing.

Not all councilors were without reservation. "These are legitimate concerns," said Councilor Jeremy, who asked for fuller public disclosure about the seller's local holdings and potential conflicts. The property is owned by Metro Development principal Tom Lozan; the manager said Lozan did not participate in executive-session negotiations and that the city had independently validated the price with assessor and market metrics.

Council members who pressed operations and timeline questions were told the purchase-and-sale agreement contemplates a June 2 closing (the current tenant's lease ends May 31) and a construction and fit-out schedule the manager said could put some public works operations in the new building by late 2025.

The purchase-and-sale and AUD motions passed with council assent. The manager said the city will pay ordinary property taxes to Barre Town (currently about $54,000 annually on the site), and expects some operating offsets — for example reduced heating and longer equipment life if fleet is stored indoors — and possible third-party tenancy for unused space.

The council's approval commits the city to the next administrative steps: filing the AUD with Barre Town, preparing design documents and scoping RFPs for the upgrades, and arranging short-term financing for the renovations.