Should the county purchase Medina office building?
Adult Probation Department expected to lease space
County commissioner have been asked to purchase the Courthouse Commons building near the Medina County Courthouse. Photo provided
MEDINA – County commissioners are considering an offer to purchase the Courthouse Commons building on the Medina Square for about $1.6 million.
Building owners Mark Dorman and Tracey Green approached commissioners with the sales offer after discussing plans with county officials to lease the third floor of the building to the county’s Adult Probation Department.
Chief Probation Officer Veronica Perry made an impassioned plea to commissioners in June that it was time to move the growing department out of cramped, dingy conditions in the basement of the old courthouse building.
Moving the department was one of the top priorities for county officials in 2009 when they designed plans to expand and renovate the courthouse complex at an estimated cost of $17 million. However, the Great Recession and plunging tax revenue forced commissioners to table the courthouse addition.
Consequently, county officials have been discussing plans to move the department into the vacant third floor of Dorman’s building located on the southeast corner of the Medina Square across the street from the Medina Library and Courthouse.
However, an analysis prepared for Dorman by IRG Realty Advisors indicates the cost to the county of leasing the third floor or purchasing the entire building would be approximately the same after 10 years – $2 million.
The cost to purchase the building assumes the county would continue to collect rent of about $32,000 per year from the building’s current tenants – Dorman’s financial firm, the Bailey law offices and a martial arts school.
Under the IRG scenario, the county would pay about $55,000 to lease the third floor of the building plus have about $130,000 in additional costs for two sheriff deputies to provide security in the building and routine operating costs.
County Commissioner Pat Geissman said the county considered buying the former Bank One Building when it went on the market for $1 million 12 years ago.
“I thought the county made a mistake by not purchasing it then,” she said.
Purchase of the building would be less attractive to county officials if they proceed with the courthouse expansion they planned eight years ago. The design the commissioners came up with was for a 43,000 square-foot addition to the courthouse at an estimated cost of $17 million.
Dorman suggested the courthouse expansion might not be necessary if the county acquired his building across the street. The Courthouse Commons building contains about 16,000 square feet spread out over three floors and a basement.
However, Geissman said some renovations at the Courthouse would still be needed even if the county purchased the other building from Dorman and Green.
County Administrator Scott Miller said he has mixed feelings about the proposal.
“It looks like a good deal at first glance, but there is a bigger picture to consider when you think about all the buildings we have to maintain.”
Miller said the county has had to borrow money to make capital improvements on its building the last three years. This year, the county issued $1.8 million in bonds to pay for repair work at four buildings and the county is still behind on its maintenance schedule.
“There’s something to be said for leasing when you just shut the door at the end of the day and don’t have to worry about taking care of the place,” Miller said.
Dorman said the Courthouse Commons Building is in relatively good shape with about $800,000 worth of improvements made to the building since he purchased it.
Building owners Mark Dorman and Tracey Green approached commissioners with the sales offer after discussing plans with county officials to lease the third floor of the building to the county’s Adult Probation Department.
Chief Probation Officer Veronica Perry made an impassioned plea to commissioners in June that it was time to move the growing department out of cramped, dingy conditions in the basement of the old courthouse building.
Moving the department was one of the top priorities for county officials in 2009 when they designed plans to expand and renovate the courthouse complex at an estimated cost of $17 million. However, the Great Recession and plunging tax revenue forced commissioners to table the courthouse addition.
Consequently, county officials have been discussing plans to move the department into the vacant third floor of Dorman’s building located on the southeast corner of the Medina Square across the street from the Medina Library and Courthouse.
However, an analysis prepared for Dorman by IRG Realty Advisors indicates the cost to the county of leasing the third floor or purchasing the entire building would be approximately the same after 10 years – $2 million.
The cost to purchase the building assumes the county would continue to collect rent of about $32,000 per year from the building’s current tenants – Dorman’s financial firm, the Bailey law offices and a martial arts school.
Under the IRG scenario, the county would pay about $55,000 to lease the third floor of the building plus have about $130,000 in additional costs for two sheriff deputies to provide security in the building and routine operating costs.
County Commissioner Pat Geissman said the county considered buying the former Bank One Building when it went on the market for $1 million 12 years ago.
“I thought the county made a mistake by not purchasing it then,” she said.
Purchase of the building would be less attractive to county officials if they proceed with the courthouse expansion they planned eight years ago. The design the commissioners came up with was for a 43,000 square-foot addition to the courthouse at an estimated cost of $17 million.
Dorman suggested the courthouse expansion might not be necessary if the county acquired his building across the street. The Courthouse Commons building contains about 16,000 square feet spread out over three floors and a basement.
However, Geissman said some renovations at the Courthouse would still be needed even if the county purchased the other building from Dorman and Green.
County Administrator Scott Miller said he has mixed feelings about the proposal.
“It looks like a good deal at first glance, but there is a bigger picture to consider when you think about all the buildings we have to maintain.”
Miller said the county has had to borrow money to make capital improvements on its building the last three years. This year, the county issued $1.8 million in bonds to pay for repair work at four buildings and the county is still behind on its maintenance schedule.
“There’s something to be said for leasing when you just shut the door at the end of the day and don’t have to worry about taking care of the place,” Miller said.
Dorman said the Courthouse Commons Building is in relatively good shape with about $800,000 worth of improvements made to the building since he purchased it.
