In 2010 the City of Auburn bought space within the One Main Professional Plaza from Jeff Oliphant, its owner and builder.
Now Oliphant, principal of Auburn Professional Plaza LLC, wants to buy back some of that space in the building just east of City Hall.
Specifically, he wants to buy back Unit 380 on the building’s third floor.
As Oliphant explained to City officials Monday, a health care organization wants to lease the entire south wing of the third floor overlooking East Main Street, including Unit 380.
When the City bought its condominium unit in 2010 from Oliphant for $1,055,734, the agreement included a right for him to buy it back for $1,074,949.
In addition to paying $20,000 above the City’s purchase price, Oliphant said, “probably double what the assessed value of the space next to it is” and after making all the necessary improvements, “we’re probably paying triple for all that stuff.”
But Oliphant said he is committed to the city and to bringing the health care organization downtown. By so doing, Oliphant said, he will keep it from moving elsewhere within the city or leaving Auburn altogether.
“From a dollar standpoint on the portion we are buying from the City, we are losing money, but on the overall picture we are making money,” Oliphant said.
Everything hinges upon working out a successful lease agreement.
If that doesn’t happen, no sale.
It should be noted that the City doesn’t have an actual condominium in the building. Under the state’s condominium regulations, a buyer purchases space in a building, not a part of the actual building.
The City’s planning, legal and finance departments have worked with Oliphant on the proposed purchase and sale agreement.
Auburn Planning Manager Elizabeth Chamberlain said if the deal is successful, the City would have to move its employee breakroom and its GIS offices.
Amendments will be needed to the condominium declarations to reallocate the third-floor terrace, which is the limited common element with Unit 300, where the City has its Emergency Planning office. The City intends to keep the terrace.
The agreement also calls for new arrangements respecting the allotments of the parking spaces at the site of the former Mel’s Lumber Yard.
