(Editor’s note: This is an update to a story that was posted on Tuesday, May 4, 2010)

BY ANDY TAYLOR

chronicle@taylornews.org

CHERRYVALE — City taxpayers have become owners of one of downtown Cherryvale’s more structurally unsound buildings in a turn of events that Mayor John Wright admitted “was a mistake.”

At Monday’s semi-monthly meeting, councilors revealed for the first time that in October 2007, then-city administrator Trey Cocking purchased the former Eagles Lodge building at 115 N. Neosho at a tax sale for $100. City funds were used to buy the property, and Cocking was within his $5,000 expenditure limit to buy the property without prior council knowledge or approval.

Councilors on Monday said Cocking bought the property on behalf of another party with the intention of the other second party reimbursing the City of Cherryvale for that purchase.

However, and for an unexplained reason, the second party never came through with the reimbursement, thereby leaving the City of Cherryvale as the owner of the building.

“It was a mistake,” said Mayor John Wright.

Councilors were asked if they were informed of the purchase of the former Eagles Lodge prior to the 2007 tax sale. Councilor Chad Wickham said they were notified of the building’s purchase after Cocking made the deal. Cocking was working under the city’s $5,000 expenditure limit policy, whereby prior council approval was not needed before the tax sale, he said.

Councilor Randy Wagoner described the intent of the building’s purchase as “economic development” project of the City of Cherryvale because the second party was planning to convert the property into a business.

However, upon further inquiry by the Montgomery County Chronicle on Tuesday of this week, the Chronicle learned that the issue was discussed by Cocking and the city council in an executive session, which is closed to the press and public, at a council meet on Oct. 15, 2007. The council cited “preliminary discussion of acquisition of real property” as the reason to hold the closed-door discussion.

After the closed-door discussion, the council voted unanimously to allow Cocking to have $5,000 authority to purchase real estate on behalf of the City of Cherryvale. Voting in favor of the $5,000 spending authority were councilors Randy Wagoner, Jerry Wallace, Kevin Crain and Chad Wickham.

The tax sale was held on Oct. 26, 2007 — 11 days after the council discussed the situation at its meeting.

The issue about the city’s ownership of the former Eagles Lodge was discussed Monday night not because of the way the purchase was made but because of the condition of the building itself. Greg McDanel, city administrator, said the property, as well as the property adjacent to it at 117 N. Neosho, has fallen into disrepair because the roof has partially collapsed in the former lodge hall. The buildings at 115 N. Neosho and 117 N. Neosho were originally built as one property and share a common roof structure and facade.

The building at 117 N. Neosho is owned by Bob Matthews, who has indicated a desire to sell his property for $5,000, McDanel said, adding that Matthews had indicated to him that he would like to see the structures removed because of their unsafe condition.

Councilor Randy Wagoner said he was against the prospect of buying Matthews’ property for $5,000, even if the long-term goal was to tear down the buildings.

However, he also said he did not feel comfortable putting a new roof over the city-owned property at 115 N. Neosho.

“We’ll just be throwing away money,” he said.

Councilors also were told of another unique structural aspect of the city-owned Eagles Lodge property: the building shares a common wall with the Eagles Lodge addition that was built in the 1990s. That addition now houses Hubba’s Bar.

If the city were to raze the former Eagles Lodge property, it would have to keep the wall that serves as the structural boundary between it and the Hubba’s Lounge building.

Councilors directed McDanel to present some options for the council’s further deliberation at an upcoming meeting.

McDanel offered photographs of the condition of the building’s interior, which, he said, was difficult to view because of the debris from the collapsed roof.

“Fire chief Ron Davis and I walked into the building just recently to inspect it,” said McDanel. “We couldn’t even walk three feet into the property because of the condition of collapsed roof.”

McDanel did confirm that the building has been sealed shut and is off limits to citizens.

It was later revealed that the City of Cherryvale does have liability insurance coverage on that property.