Rutherford County moves to pursue downtown Bank of America building with $9.5 million authorization

Rutherford County commissioners voted to approve advancing a negotiated purchase of the Bank of America building downtown, authorizing up to $9,500,000 to cover a $9,200,000 purchase price and related due diligence, inspections, permitting and closing costs.

County staff said the seller signed a letter of intent and the county would place $50,000 in refundable earnest money at contract signing, start a 120-day inspection period, and — if the county elects to proceed into permitting — place an additional $50,000 nonrefundable payment to enter that phase. The contract allows for three 30-day permitting extensions, each tied to additional nonrefundable payments, and the county’s total funding authorization of $9.5 million includes a modest contingency for inspections and closing costs.

The purchase, as presented, covers a property the staff summarized as roughly 1.25 acres with between about 27,000 and 35,000 square feet of building area depending on the measure; staff estimated roughly 27,000 usable square feet after excluding elevator shafts and mechanical rooms. John Varney (county staff) and others briefed commissioners that rebuilding a class-A building of similar size would cost roughly $400–$450 per square foot, putting new construction in the $12 million range, so a negotiated acquisition could be more cost-effective.

Why it matters: staff and several commissioners said the property could consolidate county functions that are currently spread among older or inadequate facilities and provide room for future expansion. Commissioners and staff emphasized that the 120‑day inspection window gives the county a defined period to perform structural, mechanical and site assessments and that any decision to move to the permitting phase would require an additional affirmative vote.

County staff described the intended near-term occupants as election commission, planning and codes, engineering, probation and pretrial services; staff also noted multiple existing leases in portions of the building and said some tenants had expressed a desire to remain if space needs allow.

Commission discussion focused on timing, existing county facility constraints and financing options. Several commissioners asked staff to update prior space-needs analyses and to coordinate with department heads about projected five- to ten-year space requirements before finalizing renovation plans. Commissioners also discussed potential partial financing by selling county-owned properties (including a parcel on Florence Road) but did not commit to any sale; staff said unused funds would revert to the general fund or be applied to renovation costs if the county closes.

The motion approved by the committee would send the purchase contract and funding authorization to the full commission for final consideration later in the week. If the commission approves and the mayor signs the purchase contract, the county’s 120-day inspection clock would start the following day.

"We've negotiated a letter of intent, which has been signed," a county staff member said. "If the commission agrees to go under contract for this, we've built into it quite a bit of inspection period to basically go through the building, both structurally and mechanically."

The committee approved the motion; staff said the item will appear on the county commission agenda for final action. At the committee level, the roll call showed unanimous support from the commissioners present.

What’s next: if the full commission approves and the mayor signs, staff will begin inspections, obtain required reports and return to the commission before spending nonrefundable permitting funds or proceeding to closing.