Tuesday, July 15, 2014

City Considers Sale of Former Cellofoam Building

Sallisaw City Commissioners, at their regular meeting Monday, voted to make a counter offer on a manufacturing building in the city's industrial park. The counter offer is for $1,015,000. Sallisaw attorney Mike Daffin and Phil Rhoades offered the city $900,000 for the building, which was formerly occupied by Cellofoam North America Inc. In a letter to the city, Daffin wrote the offer would be contingent upon Daffin and Rhoades receiving a contract with the Department of Human Services to move that service to the building. However, the offer does not cover the debt owed by the city, which is $1,014,000. City Manager Bill Baker and Assistant Manager Keith Skelton explained the offer would leave the city still owing $114,000 which could possibly be refinanced.

The building was originally constructed with the intention of keeping Cellofoam and its jobs in the city, which was successful. But last year Cellofoam moved into the larger building in the industrial park, know as the Tegrant building, which left the city paying for the building with no accompanying rental income.

Sallisaw Mayor Julie Ferguson wanted to sell the building. She said, "We have to get out from under this debt." Ferguson stated she is concerned over the city's debt load. Some city officials said it would be better to get the full price owed for the building. The commission voted to make the counter offer, and giving Daffin and Rhoades the first right of refusal. Baker said the counter offer was delivered by hand to Daffin. By Sally Maxwell, Senior News Director

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