Kingsburg council approves $4.5 million purchase of 1600 Draper Street for city hall

Kingsburg City Manager Alex Henderson told the council on June 17 that staff seeks approval to buy a 19,000‑plus square‑foot commercial building at 1600 Draper Street, commonly known as the Van Bearden building, for $4.5 million. The negotiated deal calls for a $1.5 million down payment and a secured promissory note for the remaining $3 million at 5% interest, with the city retaining the right to prepay the note.

Henderson said the purchase price includes existing furniture and that staff will use a 60‑day feasibility period to complete a Phase I environmental study and a property condition assessment before closing. “A little over 11.2 million was the estimated cost for the entire construction of the new facility,” Henderson said when describing the alternative of new construction; staff told council that adapting the existing building would cost roughly 60% of that estimate. Henderson also noted the city has a $1 million federal community project grant available to help fund the project.

Staff proposed funding the $1.5 million down payment from eligible developer impact fee fund balances and covering ongoing principal and interest on the seller note—estimated at about $19,798 per month, or roughly $240,000 annually—through a combination of reallocated redevelopment property tax trust funds, savings from the city’s current lease payments, and regular budget prioritization. Henderson said the redevelopment property tax trust fund had revenue of about $161,000 for the fiscal year and an expected fund balance of about $320,000 at year‑end.

During public comment, Kingsburg resident Charlie Sodto praised the idea of keeping city hall downtown but suggested the council consider Washington School as an alternate site. “Why don't we look at the Washington School as a site for city hall?” Sodto asked. A speaker who identified as a school‑district representative responded that declining enrollments make building a new school infeasible at this time and that the district has available classroom capacity.

Council approved Resolution 2026‑024 authorizing the purchase‑and‑sale agreement, the secured promissory note and related documents by voice vote. The motion directs the city manager to execute the purchase agreement and other closing documents, and staff will proceed with due diligence and tenant‑improvement planning. Henderson estimated staff could complete tenant improvements and move into the building in the first half of 2027, depending on the scope of improvements.

The council emphasized the adaptive‑reuse cost savings compared with new construction and noted benefits of private parking, added downtown commercial options for the current city property, and the ability to apply the federal grant toward the project. The city will return to council with final closing documents following the feasibility period and any required environmental or structural findings.