With the population of Centralia expanding, the city government has experienced associated growing pains and has been considering options to increase its municipal services footprint for several years now.
During Tuesday night’s regular meeting, the Centralia City Council unanimously approved the purchase of the previous location of Umpqua Bank along North Pearl Street, less than a block from city hall.
Centralia City Manager Rob Hill said the need for the new property was primarily pushed by the city’s municipal court running out of room to operate and store records at Centralia City Hall, but other factors played into the purchase as well.
“There’s been a compaction issue here for longer than I have been here,” Hill said, later adding, “Having a police department the size that we have jammed into a third of the first floor is pretty unprecedented. You know you have a problem.”
Aside from the need for more work space, the property was acquired to expand downtown parking as it includes two large parking lots behind the former bank building. The property was purchased for a total cost of $1.2 million, with closing costs not to exceed $30,000. Closing date on the sale is July 31. According to Hill, the city has adequate funds to buy it now without incurring debt.
He said the purchase could help bring in more revenue if the city decides to lease or sell a small portion of the property.
“There are a number of ways we can get money back from this. We have to decide what we want to do. Do we want to sell part of it and add to the tax base? Do we want to keep it for parking? We’re going to have that conversation,” Hill said.
As for which city department will move to the new building, city officials will meet to discuss possibilities over the summer, Hill said.
Centralia City Councilor Max Vogt asked if it would be cheaper to build an entirely new structure on land the city already owns instead of remodeling an existing building.
“We would be able to get in there and be using (the old Umpqua building) for significantly less than building new, based on what we're seeing from new construction costs right now,” Hill said. “A few years back, you would’ve been correct.”
The building is located at 215 N. Pearl St.
