03/10/14 — Bank finishing land deal

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Bank finishing land deal

By Matt Caulder
Published in News on March 10, 2014 1:46 PM

City officials say The Little Bank is finishing up final details before closing the contract on the purchase of the property at the corner of Ash Street and Spence Avenue.

The Little Bank agreed to pay $700,000 for the site of the former Arts Council of Wayne County building in October and has until April 30 to complete the sale.

The bank paid $35,000 at the beginning of the contract and will pay the remaining $665,000 when the contract closes next month.

"They are doing their due diligence right now," Goldsboro Finance Director Kaye Scott said. "They are taking soil samples and making sure they can get the permits they need and everything."

It is still unclear if The Little Bank plans to construct a new Goldsboro location and move away from Center Street or if it will add a branch on the site.

The Little Bank Senior Vice President Roy Parker III said the bank has no plans it is ready to discuss for the property yet.

The Little Bank originally offered $500,000 in June 2013 for the property once demolition on the property began but increased the offer to $600,000 after a counter-offer was received.

Once no more upset bids were received, the council tabled a decision on the bank's offer, citing a desire to allow the property to be seen with the building demolished in hopes of drawing a larger offer to recoup a portion of the loss on the property.

The Little Bank increased its offer on the 3.5-acre property to $700,000, which the city accepted.

The city bought the property from the Arts Council of Wayne County in July 2011 for $500,000, allowing the organization to move downtown to John Street.

The property was purchased with the intention of renovating it into an Air Force Museum.

The project was eventually found to be too expensive and the property was put up for sale February 2013.

After spending about $435,000 on museum feasibility studies, upkeep and finally demolition of the building, the city is taking a loss of about $235,000 on the sale.

The City Council decided to demolish the building and adjacent concrete silo structure after an appraisal showed the value of the property at $455,000 with the structures and $518,000 without them.