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Money-losing buildings under the microscope By Tony Boom for the Mail Tribune Jul 18, 2019 03:54 PM A A TALENT — Two city-owned buildings that are drains on the budget and not in public use are being scrutinized by officials to determine their future use. The Depot Building houses a restaurant and two office spaces that are on leases. The former Jackson County library building is home to the Talent Historical Society. City Council directed staff at its July 3 session to bring back more information about the structures, their values and possible dispositions. Leases for the two buildings do not offset costs and city time involvement. “We’ll try to get an idea of what market rate is for rental of the (depot) building and what it might sell for,” said City Manager Sandra Spelliscy. “The budget process made it really clear it’s not a good deal for the city and cannot be used for a public purpose.” Historical society officials have been in discussion with the municipality about taking over the other building if it is donated for nonprofit use, said Spelliscy. Officially the Park and Ride Center, the depot was constructed in 2003-04 on city property next to the railroad tracks. It is a replica of the town’s railroad depot in the original location, and was to serve as a bus stop and transit center for Rogue Valley Transportation District. RVTD had agreed to reroute buses to the site, but later notified the city it couldn’t due to budget constraints. Possible sale of the depot may be complicated by the fact that it was built with a state grant as a transit facility, Spellicsy wrote in a report to the council. Since its construction, the building has been leased out and at one time housed a coffee shop. Currently Sweet Beet Station restaurant occupies the largest space downstairs. A software company occupies another space and the upstairs was used originally as storage by the restaurant, but it is now subleased as office space. The building is at 100 Main St., adjacent to City Hall. The downstairs office has been leased to the current tenant since 2010, and the lease rate has remained at $531 per month. The upstairs office is leased for $500, and Sweet Beet’s rent is $1,000 per month. Because it was constructed for public use, there is only one set of meters for the building and the city pays all utilities. A clause in leases for increased cost to cover utilities was never invoked by prior management. The Sweet Beet lease was recently raised by $100 per month to help cover utility expenses. Until recently the city was also handling most maintenance from major repairs to changing light bulbs, although that was not in the lease agreement. In addition, the city has not budgeted for long-term building upkeep. Sweet Beet owner Awna Zegzdryn did not return phone calls seeking comments on the city action. Originally part of the Jackson County library system, the second building on Market Street has been used since at least 2007 by the historical society. The library is now housed in a building built in 2004 just north of the old one, which the county gave to the city. Lease for the society is $100 per month under an agreement that expires in 2023. The society reimburses the city for 90 percent of utility costs, because there are public restrooms and a storage area in the structure. Major maintenance and repairs are covered by the city, which recently paid $4,000 for upgrades to electrical and lighting systems. New flooring and other costs have also been covered by the city. Historical Society Secretary Jan Wright said the group is excited about the possibility of receiving the building. “It looks like that’s the city’s intent. Whether it happens or not, we’ll see,” said Wright. “The historical society is very sincere about becoming owners of the building.” Society fundraising efforts would need to be increased and new board members are being sought for that purpose, Wright said. “There’s a kind of security ... and feeling of continuity and longevity, and those things where we can be stable in that spot,” said Wright. “And we can make improvements to the structure that we might not do if the city still owned it.” Reach Ashland freelance writer Tony Boom at [email protected]. Photo courtesy cityoftalent.org