CORNWALL, Ontario - The price is too much for the city to swallow when it comes to purchasing a former tourism building on Brookdale Avenue.
It would have cost more than $1 million for city hall to purchase the property, says a report councillors examined at a meeting Monday night.
Councillors ultimately decided the price was too much for taxpayers to absorb.
"At the end of the day the reality is the cost is too much," said Coun. Syd Gardiner. "It's too much to ask of taxpayers today."
Earlier this year city councillors directed managers to express an interest in the former Ontario Tourism building on the busy Cornwall thoroughfare across from the Brookdale Centre.
The appraised market value for the property is $439,000, but the report suggests that number grows significantly when one considers the amount of lost tax revenue if a private developer is kept from completing a purchase agreement.
"A property with the above value would provide over $13,000 in municipal taxes per year (excluding education), which if extended over a 20-year period, has a value of over $260,000," said the city report. "It is not unusual... to assign approximately $5/square foot to commercial properties for annual maintenance and operating expenses, which would total about $16,000 per year, or $320,000 for a 20-year period."
So-called "fit-up" costs would also add to the city's bill.