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Council approves sale of former PYO building to developer; earmarking of proceeds to be decided after closing
Summary
The city approved a $45,000 offer from developer Chris Fogelman to buy the former PYO building at 700 E. Graham; the council required the disposition of proceeds be revisited after closing amid concerns about using funds to repair the nearby Grama Community Building, where a natural gas leak was reported.
The Pryor Creek City Council approved the sale of the former PYO building at 700 East Graham to buyer Chris Fogelman for $45,000, authorizing the mayor to sign closing documents and permitting reasonable closing-cost adjustments.
The Economic Development/EDTA recommended the acceptance after reviewing proposals; the council motion (moved and seconded during the meeting) included language that the city’s normal seller closing costs would apply. Staff estimated seller closing costs of about $1,247 and indicated the city would reimburse a $38.95 advertisement cost, netting roughly $43,007 for deposit into the capital outlay sale-of-surplus account 4404181.
The approval came with an explicit instruction to revisit where the sale proceeds would be held and allocated after the transaction closes. Several councilors urged that any net proceeds be dedicated to repairs and long-term upkeep of the Grama Community Building (also referred to during discussion as the Graham Building). Councilor Lamar and others strongly urged that proceeds be dedicated to the Grama building and not diverted to other uses.
During discussion, city staff disclosed that crews discovered a suspected natural gas leak in the Grama Building; staff said the leak’s location (pipes routed through older concrete floors) could make repairs costly and that further inspection was required to determine scope and cost. Councilors and staff agreed that the unknown extent of the needed repairs made it sensible to deposit sale proceeds in the capital outlay account now and decide the specific allocation after closing, when the exact closing date and the full sale net are known.
Buyer Chris Fogelman addressed the council and described plans to reopen parts of the property as a family-oriented entertainment venue (arcade/candy shop/laser tag at another recent purchase) and said he had discussed parking and code issues with the city commercial building inspector and the local school as a temporary option for event parking.
The council approved the sale and directed staff to bring back an item after closing to decide whether funds would be earmarked specifically for the Grama Community Building; if necessary, staff said they would create an appropriate capital outlay account and report back.
What’s next: City staff will complete closing details, deposit proceeds to the capital outlay sale-of-surplus account 4404181, and present a follow-up agenda item after closing to decide whether to create a specific Grama Building capital account and to recommend allocations.
