City Weighs Options for 1037 Boston Post Road

Rye's more than $6 million purchase of 1037 Boston Post Road, the intended site of a police and court facility, could force the city to shell out major cash in either a $5 million payment or a multimillion construction.

David Jepson, of Hartford-based JCJ Architecture, gave the city a list of options for 1037 Boston Post Road at the council's Wednesday meeting.

The city purchased the building from Aero Parts and Hardware in 2006 to address the parking deficit at Rye City Hall and to possibly replace 21 McCullough Place as the headquarters for the police and court.

The city's original purchase agreement with Aero calls for $25,000 in monthly payments with $5 million due in May. In November, the city changed the agreement so that it had the option of deferring the May 2010 payment for another two years. However, that agreement includes nearly six percent in interest on the unpaid balance plus a potential "hold harmless" adjustment if the capital gains tax changes.

Jepson, whose firm was contracted to evaluate the building in 2008, showed council members different site plans for 1037 Boston Post Road.

The first viable option for the city would be a one and a half story building combining the police and court facilities, but this plan would involve the city acquiring 1031 Boston Post Road and demolishing both that building and 1037 Boston Post Road to create a new facility.

The second option is a three-story building, which would have all police operations on the lower level, administrative personnel and public access on the main level and the court on the second level.

Jepson said construction could take 18-20 months to complete and would likely have a price tag of around $25 million.

Council member Peter Jovanovich said it was time for the city to cut its losses.

"I don't think the city has $25 or $27 million to spend for a new police station," Jovanovich said. "I think we ought to move on."

Jovanich said the city should evaluate alternative uses for the building besides a new court and police station. The building currently has a short-term tenant, Lester's clothing store, whose lease will expire in February 2012.

Council member Catherine Parker said the city's purchase of the property was well-intended.

"I don't think that it's necessarily a bad purchase. I think that it's a complicated matter," Parker said.

Whether or not the purchase was a good decision for the city, the council has to decide what to do with the property, said council member Joe Sack.

"There have been issues regarding 1037 over the past year, regarding the fact that we bought it but we didn't pay for it yet," Sack said. "Based on the economy and based on the consideration of the real estate market, it may not be worth as much now as it was when we signed the contract. If there's any sentiment to move on from 1037, then we need to figure out what we want to do."

Mayor Doug French said the city planner and city comptroller should evaluate the site to see what its best uses would be and if the city can afford certain options.

"Whether it's a police station or not, we owe $5 million on the building that has to be paid." French said. "We owe money and the terms of the deal get much richer as time goes on."