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Commissioners weigh Deming Campus sale to clear loans; staff to negotiate leaseback terms for three departments
Summary
Brokers presented an updated purchase-and-sale for the Deming Campus; county staff said two Business Oregon loans totaling roughly $1.245 million must be addressed and commissioners directed staff to negotiate price, owner‑carry options and leaseback duration to give public health, community development and facilities time to relocate.
Merit Commercial brokers presented an updated purchase‑and‑sale agreement for the Deming Campus and Josephine County commissioners directed county staff to negotiate terms to clear outstanding demo loans and to secure short‑term leaseback arrangements for county departments.
The board heard from Scott and Caspian of Merit Commercial, who summarized a revised offer that would be paid in two parcels and noted the buyer can close with cash or request owner‑carry financing. County staff said two Business Oregon low‑interest loans taken to pay demolition costs remain on the books; together they are about $1.245 million and are a primary reason the county wants to clear the debt through a sale.
“Part of what we’re going to address in the sale is clearing that debt from the county’s books,” one staff presenter said. Brokers said the proposed timeline would include a 120‑day due‑diligence period and a financing contingency period; owner‑carry proposals would likely require a substantial down payment to be viable if the state program requires debt retirement on sale.
Commissioners repeatedly raised the operational problem of relocating three departments housed at the Deming Campus — public health, community development and facilities — and asked staff to seek a leaseback long enough to allow time to find specialized replacement space. “We need about a minimum of two years to rehouse these different departments,” a commissioner said; county staff and brokers discussed one‑ to 18‑month leaseback windows and a potential two‑year term with cancellation rights as negotiation points.
Commissioners also stressed that redevelopment approvals will require coordination with the city; permitting is under city jurisdiction, so conditional milestones in the contract should reflect pre‑application or pre‑approval meetings rather than full permits that can take 18 months or more.
The board asked staff to leave price ranges and any owner‑carry allowances to Helen (county staff) to negotiate with the brokers and return with recommended counter‑terms, aiming for an update at the next business meeting. No final sale was approved at the workshop.
