Star Valley moves ahead with town hall purchase

By Matt Brabb
Mogollon Connection Editor

The Star Valley Town Council took the first step in its bid to find a permanent home during a spirited council meeting last week.

The council approved a resolution instructing the town manager to sign and submit a non-binding letter of intent to purchase the current town hall property.

The town is currently leasing the property at 3632 Arizona Highway 260 in Star Valley, but the lease is up in June. Complicating matters is the fact that the property is currently in bankruptcy court.

The building sits adjacent to Star Vale Mobile Home Park. Arthur Ray Lyons and Barbara Hartwell, who is a member of the town council, own the park and town hall structure. Hartwell withdrew from deliberation on the matter, and did not vote to avoid any appearance of a conflict of interest.

Town Manager Timothy Grier advised the council that it was in their best interest to purchase the property.

“This is a smart move for us fiscally,” he said. “I think it would be smart money for the town; you have to consider the replacement costs if we go another route.”

Grier noted that the council did have other options. They could buy a vacant piece of property to build on, use an existing building in the town, or continue to lease the building they now use.

Grier claimed that the first two options would cost the town three times as much money as simply buying the building they currently use, and because they didn’t know who would own the building after bankruptcy proceedings, it was difficult to know if they could get an extended lease.

“We don’t know who we would be negotiating with,” he said.

At one point, Grier did mention that there were other “confidential” options that might be available to the town as well.

In the non-binding letter of intent, the town offers to pay $240,000 for the property, which is the amount remaining on the note. Star Valley currently leases the building for $2,065 per month.

“Why are we putting a number on the letter of intent?” Councilor Gary Coon asked of Grier. “That’s unusual.”

Grier answered that unless the bid was for what remained on the note, the bankruptcy judge was unlikely to accept it.

Coon, then asked if the property had been appraised, Grier answered in the negative.

“But that’s usually a smart thing isn’t it? To know how much it’s worth before we buy it?”

“I don’t know if the analysis is that simple,” answered Grier, and again reiterated that the cost of the alternatives would be far greater.

Star Valley resident Chris Benjamin, who was a council candidate in the recent election, expressed his doubts to the council as to the legality of over-paying for the property if the appraisal came in lower than the $240,000.

Benjamin advocated for the formation of a committee to look into the various options for purchasing a permanent town hall. He also spoke of the possibility of acquiring land from the U.S. Forest Service through the Township Act as a possible solution to the problem.

“If you want to form a committee, the opportunity may bypass the council with the bankruptcy court,” answered Grier.

“So you’re saying the prudent thing to do would be to purchase this property?” asked Councilor Vern Leis.

“Purchasing this property is a great answer to our problem,” Grier answered, noting that in just three months the town could find itself without a place for the council to conduct business.

Other issues with the current building including a lack of parking, and the fact that the town would have to complete a deal with the new owners of Star Vale for the use of a private well to serve the town hall were brought up.

Grier conceded that at times, when the council was considering controversial measures that there was not adequate parking for the public, but he also noted that none of the solutions to the problem facing the council were perfect.

He also said that a deal to get water from the private well in Star Vale would have to be completed before the council agreed to buy the property.

According to Grier, the letter simply lets the bankruptcy court know that Star Valley has an interest in purchasing the property.

“We’re not committed to anything by submitting it,” he added.