Federation Bank offers building to county

WASHINGTON — Federation Bank Board Member Dale Torpey made a proposal to the Washington County Supervisors during the public comment period of a meeting Tuesday morning. The offer: $800,000 for the tallest building in Washington County.

Torpey said the current Federation Bank Building would give the county a more cost-effective way to upgrade administrative offices without expensive renovations at its Orchard Hill complex, which were criticized by Washington Mayor Jaron Rosien last week.

“As a board, we believe it is vital to keep the courthouse and its employees in downtown Washington,” Torpey said. “This building is a 16,000 square foot building on five floors. The building is completely wired for computers and internet … the building is really in excellent condition and has an elevator that serves all five floors.”

Torpey said the math worked out to around $50 per square foot, considerably less than Orchard Hill’s renovation costs, pegged at a minimum of $150 per square foot by a September feasibility study commissioned by Carl A. Nelson & Co.

The county already pays $72,000 to rent the building’s top three floors for its public health and juvenile court agencies. Torpey said that alone would mean cost savings in a matter of years.

“If you were to buy it on contract over 15 years at 4%, it would be a break-even transaction,” he said. “No matter how you would buy, it the savings of $72,000 per year is significant.”

Torpey said the county’s roughly $4.266 million from the American Rescue Plan Act, or ARPA, had better potential uses than at Orchard Hill, where project costs would likely exceed that amount, according to consultants.

“I just feel as a taxpayer that the money you received from the federal government could be better spent on roads or bridges, or maybe to improve child care in the county,” he said. “I don’t believe that moving the courthouse offices outside of downtown Washington, when there’s a very viable alternative, is in the best interest of Washington County taxpayers.”

The bank has previously offered to sell its building to the county. Torpey said the previous asking price to the county was $1.6 million, although county officials said they didn’t have information on hand to verify that number.

Federation Bank President and CEO Jamie Collier said the building was currently listed at $990,000. He said the offer was as low as the company was willing to go, but would hopefully make the savings as clear as possible.

“We’re trying to make it attractive to the county right out of the get-go,” he said. “(And) to make it attractive to the taxpayers as well … to see the value.”

Collier said the bank’s board had OK’d the proposition, although no formal offer is drawn up yet. The bank plans to move to a new location, at the corner of East Jefferson Street and South Iowa Avenue by Dec. 19.

He said the current building was well-made for county offices.

“This just looks like the perfect spot for treasurer or auditor, it just looks like a good spot for them (in) our teller area,” he said. “This looks like that kind of presentation.”

The Board of Supervisors’ stance on the offer is not yet clear. There does seem to be consensus that more room is needed, one way or another.

“Who knows, we may change direction,” Board Chair Richard Young said. “I don’t know, none of us do … we’re outgrowing this courthouse building. You go upstairs, the auditor and treasurer, and recorder, they’re cramped for room.”

Supervisor Marcus Fedler, who has spearheaded the proposed Orchard Hill project and campaigned for re-election on his ability to manage it, said he was skeptical of the bank’s numbers, given potential need for further renovations at the offered building.

“Numbers from the construction industry have changed so much that I don’t think we’re talking about the same thing,” he said. “I think that building is fantastic … however, I don’t think it fixes all the problems that we’ve talked about.”

Comments: Kalen.McCain@southeastiowaunion.com