Bay City, Michigan 48706
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www.mybaycity.com October 23, 2010
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City Using Former Social Security Building, Other Temporary Quarters

Appraisal of City Hall For Historic Tax Credits Comes in at $1.9 Million

October 23, 2010       1 Comments
By: Dave Rogers

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In the wake of devastating water damage caused by sprinklers triggered by a roof fire, comes concern about the future of city operations and infrastructure.

Bay City's historic four story City Hall recently has been appraised at $1.9 million, a figure some observers consider a fraction of its replacement value.

The appraisal came even as the cost of cleanup of water damage from an Oct. 12 roof fire is mounting. The city has insurance through the Michigan Municipal Risk Management Authority with a $1,000 deductible but the total cost of water damage and time lost in re-establishing services has not been estimated.

Mayor Charles Brunner described the damage to City Hall as "devastating," and "indescribable." He said every room in the building has been damaged by the water from sprinklers.

A faulty exhaust fan in the ceiling of the fourth floor is suspected as the cause of the fire, that was quickly doused but still triggered the sprinklers.

The total amount of insurance coverage has not been revealed by city officials but observers estimated the cost could run into millions of dollars. Also, it could be months before the main building is restored and can be fully re-occupied.

City Hall is in disarray as ServPro and other cleanup crews work to dry out carpets, rescue water-soaked computers and dry out soggy papers. Some water-soaked walls may need repair and many rooms may need re-painting.

Although emergency quarters have been established at the main fire station at Center and Lincoln, and a closed fire station on Smith Street is being used, officials are renting the former Social Security building, 700 Fourth St., until the cleanup/dryout can be accomplished.

The former Social Security building is owned by Granco Investments L.L.C., operated by William D. Gregory, with offices at 1009 S. Henry St. Taxable value in 2009 was listed on county records as about $263,000.

The City Clerk, City Manager, Human Resources and Assessor are operating out of the old Social Security office at 700 Fourth Street. The former Fire Station No. 5 at 1205 Smith Street is houing Building Code Enforcement, Engineering and Planning & Zoning offices.

Accounts Receivable, Accounting and the Treasurer opened today in the former Great Lakes National Bank building at 260 Washington Avenue at the southeast corner of 10th Street across from the Bay County Historical Museum.

Information systems has moved into the basement of the Department of Public Works at 800 S. Water Street and the accounts receivable department is at the Electric Light and Power department at 900 S. Water Street.

City employees have limited phone service and no e-mail because one of the city's main computer servers was hit by water damage.

The public has been asked to keep away from the temporary quarters during the emergency period and until further notice.

Meanwhile, the city has received an appraisal of the massive historic structure for $1.9 million, a sum considered by some local appraisers to be far below actual replacement cost.

City Manager Robert V. Belleman explained the need for the appraisal in a recent memo to commissioners:

"One of the requirements for the application to obtain historic tax credits is the submission of an appraisal of City Hall. Robert Dennison, who is a Certified General Appraiser for Farmers National Company, recently conducted an appraisal of City Hall.

"City Hall is considered a 'special purpose' property consisting of a parcel of land containing a total of 44,000 square feet or 1.01 acres presently improved with a four-story, municipal building of approximately 56,493 square feet utilized for City Hall," wrote Mr. Belleman. "City Hall has been appraised in the amount of $1,900,000."

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"The BUZZ" - Read Feedback From Readers!

rondeaudonna Says:       On October 23, 2010 at 09:09 PM
i would not like to see city hall dismantled!!!i would like to be closed up[ i mean all the doors and windowns so later generations can view it along with a narritor or push buttions containing information for them to hear..it is an old building and should be saved!!!!!!!!!!!!!!!!!!
Agree? or Disagree?


Dave Rogers

Dave Rogers is a former editorial writer for the Bay City Times and a widely read,
respected journalist/writer in and around Bay City.
(Contact Dave Via Email at carraroe@aol.com)

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