Rutherford County's Property Management Committee voted to move the Bank of America (BOA) building purchase into a permitting and design phase following a 60-day feasibility presentation and negotiations with the seller.

Architect Bart Klein of Klein Sweeney Associates summarized a battery of studies completed for the county — ALTA survey, roof and asbestos reports, Phase I environmental assessment, structural inspection, MEP review and programing for county departments — and presented a conservative cost comparison. Klein said the renovation estimate for the 29,083-square-foot building ranges from roughly $17.8 million to $18.7 million, while new construction of equivalent square footage would be higher, near $23.5 million under the assumptions used in the study.

John Harney, who led recent negotiations with the owner, told the committee the seller agreed to reduce the asking price by $1.2 million, from $9.2 million to $8,000,000, but asked the county to increase earnest-money deposits tied to the permitting phase and each 30-day extension. Harney said that would demonstrate seriousness and partially protect the seller if the county walked away after extended due diligence. "They have agreed to reduce the purchase price to $8,000,000," Harney said.

Commissioner Phillip's motion — to amend the purchase agreement to set the purchase price at $8,000,000, increase the nonrefundable-but-applicable earnest-money deposit for the permitting period and each extension to $100,000, authorize Klein Sweeney Associates to proceed with the design phase, and forward the matter to the budget committee for funding — passed on a roll call vote. Commissioner Anthony Johnson seconded the motion. The committee also voted to ask staff concurrently to identify a Plan B (leased or alternate downtown properties) if the BOA deal does not close.

Several commissioners raised fiscal concerns. Commissioner Hall questioned downtown location and overall affordability, commenting, "That doesn't make any sense to me," when comparing the presented purchase/renovation numbers with other available properties. Commissioner Irvin warned that the county must consider cumulative capital projects and their borrowing impact, saying the county risks "a fairly significant tax increase" if multiple large projects proceed without a consolidated five-year capital plan.

Klein and staff replied that the BOA building meets operational programming needs, offers long-term adaptability and that the renovation estimates were intentionally conservative (including contingencies) to reduce the risk of later cost escalation. County Attorney and staff outlined that the county could walk away during the permitting and design review periods, but would forfeit deposited earnest funds applicable to the purchase price.

Next steps: Budget and finance will review the amended contract and funding at upcoming budget committee meetings; the county's permitting-phase decision and any final authorization to close will return to the full commission for final approval.