Record-Journal
09-12-2007, 08:28 PM
MERIDEN -- The U.S. Postal Service hopes to get $725,000 for its former post office on Colony Street, but it’s not likely to come from the city.
“The city is not in an economic position to expend hundreds of thousands of dollars on the old post office,” said Mayor Mark D. Benigni.
“Many times, the postal service will work closely with the municipality and the cost will be marginal. Obviously, $725,000 is far too much for the city to consider.”
The now-vacant 99-year-old-building and its high asking price make up a one-two punch for a city struggling to revive Colony Street.
The city has lost the foot traffic the post office generated, and the asking price for the building could hamstring the city with regard to its future use.
The postal service had asked the city to bid on the property several months ago. City Manager Lawrence J. Kendzior responded with an offer of $200,000, which was immediately rejected.
USPS representatives told the Record-Journal two weeks ago that the days of cities and towns getting sweet deals on old post offices are over.
As the postal service tries to sustain itself by operating more as a private business, it will fully capitalize on all its assets, said Paul Senk, the postal service’s real estate manager.
“Municipalities have the expectation they’re going to get a bargain,” Senk said two weeks ago. “That’s not going to happen.”
The city assessed the post office building at $652,000 in 2006. The property generates about $20,000 in annual taxes. The USPS closed the post office in April, when a new facility on Center Street opened.
An appraisal on the property was done several months ago, and the asking price is based on that value, said Carl Berman, the listing agent for OR&L Commercial.
The former post office plays a pivotal role in the city’s economic development future as the city attempts to link the former Hub shopping center site with Colony and West Main streets — west of the railroad tracks — and to the new post office on Center Street, said Sean W. Moore, president of the Greater Meriden Chamber of Commerce.
Moore balked at the postal service’s asking price and said the city could still get some control over the building’s future use.
“A buyer will find that the facility will need a significant amount of work to bring it to whatever new use it may be,” Moore said. “The quantity of work was not considered when calculating the sales price.”
Moore, who also sits on the state’s Transportation Strategy Board, and others had discussed using the former post office as part of an intermodal transportation center for buses, trains, limousines and taxis.
But as that idea is being studied, it’s becoming clear that the Colony Street site is insufficient for traffic, turn-around and parking needs.
Traffic studies aren’t complete, but Moore suspects the site will prove inadequate. New plans are showing the transportation center on the other side of the tracks.
Moore envisions a restaurant or retail store on the first floor, with offices on the second.
But renovations will be restricted because the building is listed by the state’s Trust for Historic Preservation, said city Economic Development Director Peggy Brennan.
OR&L’s Berman said deed restrictions would be put in place to ensure that interior and exterior renovations meet the trust’s standards. The building’s use would be regulated through city zoning.
Any reduction in price or negotiations for a reduced price would encounter significant red tape and may need congressional approval.
Two parties have expressed interest in the building. Berman said its location near the railroad tracks is a plus.
Brennan, who is in contact with Berman, said the city is willing to work with any buyer, and may pursue a partnership to use the building as a ticket center.
“If he gets a credible developer making an offer, we want to talk to them,” Brennan said.
“The city is not in an economic position to expend hundreds of thousands of dollars on the old post office,” said Mayor Mark D. Benigni.
“Many times, the postal service will work closely with the municipality and the cost will be marginal. Obviously, $725,000 is far too much for the city to consider.”
The now-vacant 99-year-old-building and its high asking price make up a one-two punch for a city struggling to revive Colony Street.
The city has lost the foot traffic the post office generated, and the asking price for the building could hamstring the city with regard to its future use.
The postal service had asked the city to bid on the property several months ago. City Manager Lawrence J. Kendzior responded with an offer of $200,000, which was immediately rejected.
USPS representatives told the Record-Journal two weeks ago that the days of cities and towns getting sweet deals on old post offices are over.
As the postal service tries to sustain itself by operating more as a private business, it will fully capitalize on all its assets, said Paul Senk, the postal service’s real estate manager.
“Municipalities have the expectation they’re going to get a bargain,” Senk said two weeks ago. “That’s not going to happen.”
The city assessed the post office building at $652,000 in 2006. The property generates about $20,000 in annual taxes. The USPS closed the post office in April, when a new facility on Center Street opened.
An appraisal on the property was done several months ago, and the asking price is based on that value, said Carl Berman, the listing agent for OR&L Commercial.
The former post office plays a pivotal role in the city’s economic development future as the city attempts to link the former Hub shopping center site with Colony and West Main streets — west of the railroad tracks — and to the new post office on Center Street, said Sean W. Moore, president of the Greater Meriden Chamber of Commerce.
Moore balked at the postal service’s asking price and said the city could still get some control over the building’s future use.
“A buyer will find that the facility will need a significant amount of work to bring it to whatever new use it may be,” Moore said. “The quantity of work was not considered when calculating the sales price.”
Moore, who also sits on the state’s Transportation Strategy Board, and others had discussed using the former post office as part of an intermodal transportation center for buses, trains, limousines and taxis.
But as that idea is being studied, it’s becoming clear that the Colony Street site is insufficient for traffic, turn-around and parking needs.
Traffic studies aren’t complete, but Moore suspects the site will prove inadequate. New plans are showing the transportation center on the other side of the tracks.
Moore envisions a restaurant or retail store on the first floor, with offices on the second.
But renovations will be restricted because the building is listed by the state’s Trust for Historic Preservation, said city Economic Development Director Peggy Brennan.
OR&L’s Berman said deed restrictions would be put in place to ensure that interior and exterior renovations meet the trust’s standards. The building’s use would be regulated through city zoning.
Any reduction in price or negotiations for a reduced price would encounter significant red tape and may need congressional approval.
Two parties have expressed interest in the building. Berman said its location near the railroad tracks is a plus.
Brennan, who is in contact with Berman, said the city is willing to work with any buyer, and may pursue a partnership to use the building as a ticket center.
“If he gets a credible developer making an offer, we want to talk to them,” Brennan said.