SHELBY — Shelby’s historic downtown firehouse was officially moved from “Unfinished Business” to “Legislation” on City Council’s agenda Monday evening.
The 1870’s fire station has been a topic of on-going discussion among city lawmakers for several years. In October 2024, the city decided to relinquish its ownership and pursue a new owner.
City Council approved on Monday the first reading of an ordinance determining the firehouse be sold and “designating the Community Improvement Corporation” as the city’s agent in the sale of the property.
Back in November, Shelby Mayor Steve Schag announced the Shelby CIC had been tasked to help the city sell the former station.
“It’s been a formula that has been successful in selling properties in the past in ways that are advantageous to all parties involved,” Schag said in November.
Monday’s meeting marked the first of three readings for the proposed legislation, but ample discussion was had regarding details of the ordinance — largely revolving around the sale window and review process of development proposals.
Six-month sale window could be extended if necessary
The proposed legislation states that the CIC will have the “exclusive right” to sell the firehouse property within six months of the effective date of the ordinance.
It also reads the “said real property will be in contract to sell within six months” of the date the ordinance becomes effective. Council may grant an extension if necessary.
Councilman Eric Cutlip asked why the sale window for the CIC was set at six months, questioning if that would be enough time to sell a property like the fire station.
Nathan Martin, Fourth Ward councilman, reiterated that council would have the power to extend the sale window, but also said six months is about standard for contracting a listing agent.
“We don’t want this thing to be on the market for a year or two years so to speak, so we had to put something in there,” the mayor said.
The legislation also states that the CIC will retain a sum not greater than six percent of the sale price, after the deduction of all appraisal fees and all costs related to the sale of the property.
Submission procedure and reviews
The legislation, approved during its first reading Monday, also outlines that the terms of sale will include a “detailed development agreement prepared by the CIC, with a claw back or reversionary clause and first right of refusal” in place for the city.
The city also reserves the right to review any and all submissions for purchase made to the CIC. Shelby further reserves the right to reject any offer submitted.
Martin inquired about how the procedure may look for council to review submissions processed by the CIC. He said the process is “unlike any other sale” the city has previously completed.
Schag responded that he would like City Council’s input to determine the best way to handle submission reviews.
The Fourth Ward councilman also questioned whether prospective buyers should have Certificates of Appropriateness approved by the Shelby Historic Preservation Commission prior to any sale becoming final.
COAs must be submitted for review prior to any exterior changes to designated historic properties in the city’s downtown historic district — including the Main Street firehouse.
Martin said he feels buyers should submit COAs for approval prior to completing the purchase in order to present the most accurate plan to council.
“I think it would be good to have that input on the front end versus waiting on the back end,” he said.
Pending any unforeseen delays or postponements, the proposed legislation will be read a second time during council’s next regular meeting June 2. If approved, the third and final reading would be set for June 16.