IR seeks bond issuance for building demolition
IRON RIVER—As winter shifts into high gear, the city of Iron River is proceeding with its plan to demolish the former Coast-to-Coast building at the corner of Genesee Street and Third Avenue.
At the city’s regular meeting on Dec. 17, the council heard a field condition report from GEI Consultants pertaining to the deteriorating structure and also adopted a resolution to authorize the issuance of a capital improvement bond to pay for possible demolition and resultant cleanup costs.
City manager Perry Franzoi said the city is seeking a bond for a maximum of $500,000 for the work.
“We have to publish what the high end is and it’s the maximum that we can borrow,” Franzoi said. “We do not have to borrow this amount of money. We can issue less than that. For example, if a bid comes in at $300,000, that’s all we have to issue the bond for.”
In the report presented by GEI Consultants Senior Project Manager Craig Richardson, estimated costs for two options were presented. There are mitigating factors involved in the estimates concerning the adjacent Anderson building and St. Vincent de Paul buildings. The former Coast-to-Coast building has a common wall with the Anderson building, which in turn has a common wall with the St. Vincent structure, according to a preliminary field finding by GEI.
The estimated cost for demolition of the Coast-to-Coast building and common wall finishing and preservation of the Anderson building common wall is $448,300. The estimated cost for demolition of both the Coast-to-Coast and Anderson builds and the common wall finishing and preservation of the St. Vincent building wall is $414,100.
The city presently is pursuing the first option, but is stuck in negotiations with the owner of the Anderson building over costs to preserve the common wall during demolition. The owner, who currently lives overseas, has been adamant that he will not pay any costs involved in the project, according to Mayor Terry Tarsi.
City attorney Mark Tousignant said