All bidding proposals indicated they will involve complete demolition of existing structures.
The bids were submitted by Stroh Architecture of Prescott for $2 million; Jacor Partners of Phoenix for $2.35 million; Silo Holdings of Show Low for $2.5 million; and two bids from Ponderosa Hotel Management Prescott for $2.55 million.
Ponderosa Hotel Management operates several hotels in Arizona, including two in Prescott, Spring Hill Suites and Quality Inn by Choice. One bid was for multi-family use and the other for a new hotel.
All bidding proposals indicated they will involve complete demolition of existing structures.
Prominently located at the corner of Goodwin and Cortez in the heart of downtown Prescott, the land is considered quite valuable by investors. Council members and officials have long emphasized they hope it will be developed into a mixed-use project that can include retail, restaurants and possible living sites, said Deputy City Manager Tyler Goodman.
The city still has to decide what to do with the full wall interior mural that covers the interior northern wall of the City Council Chambers and the outdoor cowboy statue at the west entrance.
The Mayor’s Commission on Facility Optimization and Property Usage (FOPU) has had several closed discussions about the sale of the property. FOPU also will interview prospective buyers, Goodman said. The plan is to rank the purchase proposals in the near future and then advance them to the council. Once that has been done, rankings will become public information. When the sale has been completed, proceeds will be used to help pay for the $7.55 million purchase and renovation of the new building on Montezuma Street. In the meantime, some city staff members are still working in the current building.
Lease Changes, Renovation Underway at Future City Hall
While consideration is being given to bids for the existing City Hall, other agreements are being forged to renovate the new facility.
Most of the former occupants of the Montezuma Street building have relocated. Ten companies have left since the city bought the former National Bank Building in June 2021. Only four tenants remain. One of them, Guild Mortgage, has agreed to move from its current third floor office to the second floor so that construction can begin on what will be a significantly larger City Chamber space on the third floor. In fact, new space is being designed for 256 people, about double what the current chamber’s seating space can accommodate.
City Deputy Recreation Services Director Tim Legler said the city had signed an agreement with Haley Construction, a Prescott-based company, to complete the $1.1 million reconstruction of the third-floor space previously occupied by Guild Mortgage. Construction is to be fully underway within days. Chamber space will be connected to City Council offices through a connecting hallway.
Renovation also is scheduled for the second floor, where the Human Resources and Community Development offices will be located.
Overall, the estimated expense for renovations will total about $4.5 million. These funds are to come from the general fund, the street special revenues fund, the water enterprise fund and the solid waste enterprise fund.
Complete relocation of existing City Hall services and offices into the new building is months away, Goodman said. “It is hard to give a definitive timeline, but we do plan to move more personnel in coming months. What is still unknown is when the Community Development and Utility Billing counters and public services will be moved to the new building. We’ll be sure to give substantial public notice prior to that occurring. The timeframe is simply unknown currently.” QCBN
By Ray Newton, QCBN
