County considers sale of New York Building in Lakewood

Sale could save the county millions in capital funds

Posted 6/26/19

The county could save about $7 million in capital funding over the next few years should it go forward with selling the New York Building in Lakewood to its current tenants. The building, which …

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County considers sale of New York Building in Lakewood

Sale could save the county millions in capital funds

Posted

The county could save about $7 million in capital funding over the next few years should it go forward with selling the New York Building in Lakewood to its current tenants.

The building, which houses Intervention Community Corrections Services (ICCS) “is nearly 100 years old now,” said Deputy County Manager Kate Newman. Continuing to reinvest in the “old building is not cost effective.”

The sale would free up capital funds that were to be allocated to the building’s maintenance, Newman said.

The Board of Jefferson County Commissioners is scheduled to vote June 25 on whether to approve the sale for $350,000 to ICCS, after the Golden Transcript has gone to press. The story will be updated online at goldentranscript.net.

Should the board approve the purchase and sales agreement, Intervention Inc. will have a 60-day period for due diligence and inspection. An anticipated closing date is Aug. 30. The county would have the right of first refusal — meaning the county would have the option to buy it back — if Intervention Inc. decides to later sell the New York Building and its property.

If the sale is approved, the capital fund money that would have gone into maintaining the New York Building could go toward other capital projects, such as roads, Newman said.

Built in 1922, the New York Building, 1651 Kendall St., has been county-owned since 1993. In 2002, the county and Intervention Inc. entered into a lease agreement to manage work release and community corrections programs out of the building. But the county’s facilities management department oversees the building and pays for its maintenance.

Intervention Inc. has offered to purchase the building and its nearly 3 acres of property for $350,000.

Company representatives could not be reached for comment.

The building is structurally sound, but the inside needs an overhaul, Newman said. The plumbing, electrical, heating, ventilation and air-conditioning systems all need work.

County documents state about $4 million has been appropriated in 2019 for high priority repairs and renovation of the New York Building. Another $3 million was requested over three years for smaller maintenance projects that are not safety related, such as the parking lot, Newman said.

To date in 2019, the county has spent $86,000 on the building’s maintenance, according to county documents. That money will not be reimbursed in the event of a sale.

Intervention Inc. pays $141,658 annually to rent the building, states county documents say. According to Newman, that money is used by the county to offset the basic, ongoing upkeep of the building and its property, such as snowplowing.

The county wouldn’t lose that rental income, Newman said, because it spends even more annually on the building’s regular maintenance.

For cost effectiveness, the county originally had wanted to relocate the community corrections services and build a new, more efficient building to house it. Dating back nearly a decade, various companies and organizations — including the Rocky Mountain College of Art and Design, located across the street from the New York Building in what is known as the 40 West Arts District — had shown considerable interest in purchasing the property. However, any sale was contingent on the county securing a replacement site or facility for the community corrections services.

In 2015, the county looked into a proposed location near West 8th Avenue and Quail Street in Lakewood. This location would have required a special use permit from the city of Lakewood, but moreover, the relocation of the community corrections services to the proposed location was met with much community opposition.

Intervention Inc. only recently approached the county about buying the New York Building, according to county documents.

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