9/28/07 - County opts to buy two south Main St. properties

Legislature OKs $576,000 purchase of Moose Lodge, Robbins Vending properties

(As Published by Cortland Standard, Corey Preston reporting)

Calling it the best move financially in response to a judge’s ruling against the county, the Legislature on Thursday reversed its course once again and decided to purchase two properties from the failed south Main Street land deal for $576,000.

The Legislature voted 15-4 to buy the Moose Lodge site at 157 Main St. and the Robbins Vending property at 159 Main St. and 9 William St.

The two commercial properties were the most substantial pieces of a bid to purchase a total of nine parcels for $894,000 to build a county public health facility on south Main Street.

Legislators were unsure at this point what the county would do with the two properties, but those in favor of buying them said that purchasing was the most cost-effective way to answer state Supreme Court Judge Phillip Rumsey’s ruling that the county breached a valid contract by backing out of agreements to purchase the properties in January.

Purchasing the properties will cost about $26,000 more than the original agreed-upon prices of $250,000 for the Moose Lodge and $300,000 from Robbins Vending, due to estimated damages from attorneys for the two property owners relating to legal fees and the delay of the sale.

The county’s liability fund will pay the $26,000 difference, but the original $550,000 costs will be covered by the county’s tobacco settlement money, which was a key factor in the Legislature’s decision, said County Attorney Ric Van Donsel.

Had the county decided not to purchase the properties, attorneys for the Moose Lodge and Robbins Vending had suggested their clients would accept damages for the breach of contract of $50,000 and $120,000, respectively.

Those costs would not be able to be paid for out of the tobacco settlement funding — which requires a capital investment by the county — instead requiring payment by the Legislature out of its general funds.

“I think a big part of the consideration was the source of the money,” Van Donsel said. “Plus the county will still have the value of those properties to show for the expense.”

Legislature Chairman Marilyn Brown (D-8th Ward) agreed. “I think this was the only way to do it, other than to appeal the decision." "

The question was, do we just settle, or do we buy and settle, and I think it makes the most sense to at least get something out of it,” said Legislator Carol Tytler (D-3rd Ward).

Legislators Newell Willcox (R-Homer) and Kay Breed (R-Cortlandville) both voted against the purchases out of principal, but they agreed the Legislature had utilized its best option at this point.

“This has been screwed up from Day One … the whole thing was botched,” Breed said of the Legislature’s decision to purchase in December of 2006, followed by its decision to back out of the purchases in January.

Willcox agreed, but said that “the decision made was really the only one fiscally that could be made at the present time.”

Willcox and Breed were joined by Legislators Tom Williams (R-Homer) and Ron Van Dee (D-5th Ward) in voting against the decision to purchase.