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Commissioners approve third extension, $100,000 earnest deposit for county's purchase of downtown Bank of America building
Summary
The Rutherford County Commission authorized a third 30-day extension of the purchase agreement for 120 East Main Street and approved a $100,000 earnest-money payment that raises the county's escrow to $450,000, nonrefundable but applicable to the purchase price; commissioners said the county will decide next month whether to close.
Rutherford County commissioners on May 14 authorized a third 30-day extension of the county's purchase agreement for the Bank of America building at 120 East Main Street and approved a $100,000 earnest-money payment tied to that extension.
Robert Peay, chairman of the Budget, Finance and Investment Committee, presented the resolution and said the extension continues due diligence ahead of a closing decision the commission must make next month. The county attorney told the commission the third extension will bring total escrow deposits to $450,000 and described those funds as nonrefundable but applicable to the purchase price.
"This last 30-day extension will bring the total escrow deposit up to $450,000," the county attorney said, describing the schedule and the need for additional time to finalize design and cost estimates.
Commissioners discussed the work done during the earlier extension periods, including preconstruction assessments presented by a construction services firm. Commissioner Cook asked whether the county had uncovered structural or environmental surprises; a county official said prior due diligence and a recent preconstruction presentation addressed those concerns and did not reveal issues that would halt the project.
Commissioners voted on the resolution after debate; the clerk recorded 16 yes and 3 no. Peay made the motion to exercise the third extension and approve the $100,000 payment and the commission seconded it before carrying the measure.
Next steps laid out by staff: the county will continue negotiated design and preconstruction work through the extension and must decide at the June meeting whether to proceed to closing. If the commission declines to move forward after the extension ends, the county would forfeit the cumulative escrow, the county attorney said.
The measure was discussed as a budget and property-management decision; commissioners said the continuing preconstruction work is intended to produce firmer cost estimates and that the escrow payments reduce the eventual purchase price if the county proceeds.
