District outlines due-diligence findings, possible renovation costs for Market Street property; zoning and deadline noted

District officials briefed the committee on March 10 on due-diligence findings for the Market Street property the district is negotiating to acquire for Bearcat Cyber operations, flagging potentially substantial future renovation costs and noting a March 31 due-diligence deadline and an upcoming zoning hearing.

Director Liggins introduced the item and said the district had completed inspections and was sharing cost estimates and an architect’s report as part of the due-diligence process. "We're not saying we're going to go out and do all those improvements right away," Liggins told the committee, but said the district needed to understand potential costs to plan and budget.

During discussion, committee members and staff cited an engineering/inspection report noting the HVAC system and boiler are at or near end-of-life and that replacement could be a near-term capital need. Committee members asked for clearer itemized estimates and for clarity about which repairs were immediate and which could be deferred.

Administration said the district’s appraisal is roughly in line with the negotiated purchase price and that the appraisal also flagged the boiler as older equipment; staff also said the basement currently houses materials the historical society keeps and that the district expects to negotiate a rent-back arrangement so the society can remain in the space until it relocates.

The district reported a zoning application for necessary approvals had been filed and that a zoning hearing was scheduled in mid-April. Committee members pressed staff on timing: the administration said the contract’s due-diligence period extends to March 31 for the property-condition acceptance decision, and that the board needs that information to decide whether to proceed.

Financially, administration told the committee that capital funds and bond proceeds already earmarked for facilities work would be used for renovations and that the district planned to replenish capital by including funding in future general budgets. Staff said they did not expect a tax increase as a direct result of the purchase and that funds for necessary upgrades would be managed through existing capital planning.

No final decision was taken at the committee meeting. Directors asked for more itemized cost detail and clearer timelines for the required work and potential staging of renovations if the district proceeds with purchase and zoning approvals.