Construction could start as early as the early January on the office building, City Hall annex and KeyBank that is to replace the row of empty taverns just east of Auburn City Hall.
But as developer Jeff Oliphant, president of Auburn Professional Plaza LLC, told members of the Auburn City Council on Monday, the exact date is still up in the air.
“We are planning to start construction right after the first of the year, but we have not set a date,” Oliphant said. “We don’t have an exact date for the closing of everything as far as our financial part of it, but we hope to very soon.”
Oliphant and his firm plan to replace the block with a three-story brick structure to include a City Hall annex, medical and office space, and a new home for KeyBank.
The city agreed in September to sell the old Jade and Mecca tavern parcels for $1.5 million. Oliphant already owns the third parcel on the row and a former pawn shop.
In September, councilmembers passed a resolution authorizing Auburn Mayor Pete Lewis to sign a lease for the annex space.
That lease listed a number of things Oliphant had to do before he could start building, among them the following:
• Complete an agreement with KeyBank for the portion of the bank’s drive-through area and finalize the bank’s lease. Oliphant has met this condition.
• Reach an agreement with the city regarding the use of part of the three-story parking garage Auburn Regional Medical Center is building on the block north of City Hall, west of the hospital. The city and ARMC will share the garage. Council members approved the lease agreement Monday evening.
• Oliphant said arranging financing for his project in the current economy probably has been the biggest challenge. Nevertheless, he said, he has received a loan commitment from an major bank in the western United States.
“As far as I know, it’s one of the very few new construction loans that reflects a commitment made by any bank,” Oliphant said.
Oliphant said he had to obtain secondary financing because the first loan commitment wasn’t as high as he had expected.
• Obtain city permits, then enter into a construction contract. Oliphant said he is optimistic that he can accomplish all these things soon.
One of his tasks will be to remove asbestos in the old tavern buildings slated for demolition. Last week, Oliphant signed an agreement with the city that allows him to enter into the city-owned taverns to remove asbestos. He also will remove asbestos in the buildings he already owns.
Oliphant said he has reached agreement with the Cavanaugh family for the property the current Key Bank building sits on and is now doing his due diligence.
“I contemplate it will not happen concurrently with everything else,” Oliphant said of bank demolition. “KeyBank will stay in operation. There was a gas station on that property once, and we do have to look at that.”
