City police building could be headed to the auction block

HUDSON — No bids were submitted for an offer of sale of the former Hudson Police Department building, so it may be heading to the auction block.

The deadline for the city to receive bids for the former police headquarters at 427 Warren St. was Monday, but no offers were submitted.

“The Board of Estimate and Apportionment needs to meet as soon as possible to consider an auction instead of sealed bids, and to reconsider the restrictions imposed on the bidder,” Common Council President Thomas DePietro said Wednesday.

DePietro is one of three members who make up the Board of Estimate and Apportionment. Mayor Rick Rector and city Treasurer Heather Campbell are the others. The board has been tasked with selling the building on behalf of the city to get it back on the tax rolls.

The city has no timetable for selling the building, Rector said.

“We will need to regroup and review all possibilities as the city would like to sell the property,” Rector said.

The building was offered for sale in a sealed-bid process. The minimum bid was set at $300,000. Officials put limitations on the property to ensure it does not sit idle. As part of the restrictions, the property has to be developed or sold within two years after purchase or the new owner will be fined $100,000, according to a resolution the Common Council approved Jan. 15.

“The borrower will be permitted to have residential tenants above the first floor of the subject premises, provided the first floor is operated for legal commercial use,” according to the invitation to bid on the city’s website.

Rector said it will be up to the board to determine if the restrictions placed on the potential owner of the property are too restrictive.

“I think as part of the review process, we all will have to that conversation,” he said.

Fifth Ward Columbia County Supervisor Richard Scalera asked the board Jan. 8 to consider extending the two-year time limit to allow the chosen bidder substantial time to get the necessary approvals to acquire a building permit.

Scalera pointed to several steps in the development process — possible asbestos remediation, approval from historic preservation and engineering studies — that may need to be completed before more floors could be added to the one-story building. His suggestion was not taken.

“I don’t know how many people would be interested without having the ability to put a second or third floor on,” Scalera said. “I know that takes an engineering report — that alone probably takes two or three months to get to determine if, in fact, the load can take a second or third floor.”

Fourth Ward Supervisor Linda Mussmann has advocated for the city to consider putting the property up for a public auction, instead of a sealed-bid process.

“I generally thought you use the auction as the way to get the best price,” Mussmann said in January at a meeting of the Board of Estimate and Apportionment.

A public auction is typically held in the city for non-city owned properties, attorney Andy Howard said in January. Sealing the bids would also ensure there is no collusion. The advertised sealed-bid process could also produce more bidders, he said.

The sale to a private owner would add to the city’s tax revenue. The property was assessed in 2018 at $550,000, according to Columbia County property records.

The building served for many years as the headquarters for the Hudson Police Department before the department moved to 701 Union St. in April 2017. The property is 4,590 square feet in area and includes a one-story brick and concrete structure with an underground parking garage, according to Columbia County property records.

To reach reporter Amanda Purcell, call 518-828-1616 ext. 2500, or send an email to apurcell@thedailymail.net, or tweet to @amandajpurcell.