Nov 06, 2020

Old Bomgaars building in Alliance will be sold to Bulldog Inc.

Posted Nov 06, 2020 3:35 PM

By Kalin Krohe, Panhandle Post

During the Alliance City Council meeting on Nov. 3, council approved to sell the old Bomgaars building to Bulldog Inc.

Bulldog Inc., is a local construction company owned by Ray Hashman and Jay Dubs. 

The ordinance passed on a 3-1 vote. Councilwoman Ryann Reynolds was absent from the meeting. 

  The vote went as follows:
-Mayor Mike Dafney, Yes
-Annora Bentley, Yes
-Earl Jones, No
-Brian Mischnick, Yes  

The building will be sold for $96,000. The roof of the building will also be repaired. 

Councilman Jones had questions about the roof for council. 

Jones asked, "How much are we spending for that?"

Alliance Mayor Mike Dafney stated, "The insurance money will be for the roof."

Jones replied, "But how much are we giving them to fix the roof?"

Dafney said that Bulldog Inc. will receive $25,000 for roof repairs. 

"So we're actually settling this property for $71,000, I just want to make that clear," said Jones. "It's not $96,000, it's $71,000 for a property we paid $320,000 for."

Dafney said the City of Alliance will actually receive $151,000 for the building. 

"We got $80,000 on the roof and we're giving them $25,000," said Dafney. "That leaves us $55,000. When you add the $55,000 to the $96,000...you come up with $151,000."

"So we could keep $80,000 and still have the building," said Jones. "If we kept all of the money from the insurance company and didn't sell the building, we'd have more money and the building. Is there something I'm not understanding?"

Dafney said that the city wouldn't have all of the $80,000 from the insurance company. 

"We wouldn't have the whole $80,000 because of the roof," Dafney added. "We'd have to go out for bids and it sure the hell's going to be over $25,000."

Jones' idea is to keep the remaining insurance money after the roof is repaired and then try to sell the building again. 

"I don't know...we've only had one bid," said Dafney. 

"I've had four people call me," Jones replied. "I have no idea what they were going to bid or what they might say Mike, I agree. But I'm just saying this doesn't make any sense to me. Please make me understand."

"You've been saying that all the way along...," said Dafney. "What do you want to do, if I go back and bid for it. We do know what we are doing here...$151,000."

Jones then went on to say that the council could possibly sell the property just for the lot. 

In other business, council:

-Approved the vacation of a right-of-way in Snedeker's and Reddish Additions. This will allow the redevelopment of the salvage yard located at 923 West 3rd Street. Staff waived the future two readings of the ordinance to prevent the interruption of the redevelopment with anticipation of colder weather. 

-Approved the airport building No. 2340 and 3101 lease agreements. There was also a lease agreement approved for Cyclone Enterprises. 

-Approved a tractor purchase for SkyView Golf Course in the amount of $33,200. The new tractor will replace the 1962 tractor. 

-Approved the fourth quarter financial statement presentation from Finance Director Randy Waggener.