Library is a major topic of discussion at last Town Board meeting of 2012

Special to The Millerton NewsPINE PLAINS ­­— During the Town Board meeting on Thursday, Dec. 20, board member Sandra David read a statement on behalf of the board concerning the Pine Plains Free Library.It stated the board needed to address “concern that there may be much public confusion and misunderstanding concerning this situation and [must] clarify the current situation, explain the Town Board’s role, provide information and share our dilemmas with the public.”After getting the nearly 40 people gathered in the Town Hall up-to-speed, the statement noted the Bank of Millbrook, which holds two-thirds of the library’s debt (after merging with the former Stissing National Bank, and in conjunction with Salisbury Bank and Trust, which holds the remaining one-third) has foreclosed on the library. The foreclosure sale is to take place on Jan. 9. The statement continued that the Odd Fellows deed had written into the original contract (the library was built on land donated to the library foundation by the Odd Fellows) that “the Odd Fellows have perpetual and exclusive use of 1,000 square feet of prime space within the building as long as it is used for municipal purposes.” The town, therefore, is trying to learn if it is legal for it to purchase the library building with the Odd Fellows’ contractual reservation.When the library was originally going to be donated to the town, Attorney to the Town Warren Replansky confirmed with both the Association of Towns and the State Comptroller’s Office that this reservation would not pose any problem to the town’s acquisition of the building. Now that the town is looking at the possibility of purchasing the building, the board has been advised if it tries to acquire the building, a reservation of rights could present a challenge.The second question the town must answer is whether it can justify buying the library building for use as a library and other municipal purposes if some of the space cannot be utilized.The statement read by David continued to address this question.“After reviewing this matter with its town attorney, town accountant and town engineer, the Town Board has concluded that it could not justify the purchase of this building unless the entire building could be used by the town. As a result, the Bank of Millbrook has been advised the first condition of any purchase of this building [by the town] would be the legal renouncing of any exclusive reservation of rights of the Odd Fellows to use a portion of the building.”Additionally, “In order to justify the acquisition of this building, we must consider how to make the building usable for library and municipal purposes. The Town Board is presently conducting its due diligence to determine the feasibility, and the possible cost of retrofitting the building for such uses.”The statement went on to consider the potential impact to taxpayers, including the cost of purchasing the building, legal fees, bonding costs, operational and maintenance costs, as well as the potential cost for retrofitting the building for municipal uses.The town estimated operating and maintenance costs will run about $50,000 annually. The cost to service the $1.5 million debt would be $100,000 annually. The $150,000 increase to the town budget would result in a 15 percent increase in the town’s budget, which is well over the 2 percent tax cap imposed by the state. The 15 percent increase would raise taxes $150 per $100,000 of assessed value of a given property. The statement said if the town is able to reduce the purchase price, sell other municipal buildings (i.e. the current Town Hall or the former library) and/or fundraise, it should be able to chop away at the tax hike. In all likelihood, the scenario will be put on the ballot, board members agreed.During public comment, a number of residents spoke out.Doug Cramer asked if “the Town Board had given any consideration to alternate locations for the library in the advent that the town is unable to negotiate a reasonable solution with the bank?”Town Supervisor Brian Coons said yes. “Despite the fact we don’t like the size of it, we would move back to the old library. That is our number one choice,” he said, “even though we don’t like it.”Linda Wisdo asked “What happens on Jan. 9 with all the books? Have we been looking at the cost to the town to renovate and operate the old building compared to the new?”“The town has been looking at those figures and comparing them, as well as looking at the relative space issues,” Coons said.Wisdo followed up, asking, “On Jan. 9, do we have to be prepared to go over with wheelbarrows to help move the library out?”Replansky indicated from his discussions with the bank’s attorney “in all likelihood the bank will own the building after Jan. 9, and the bank has indicated that it may evict, but we have anticipated that problem.”George Whalen, president of the Bank of Millbrook, addressed the Town Board and those in attendance.He delivered to the Town Board a letter from the bank regarding the history of the situation and where the bank currently stands on this issue. “One of the frustrations is the lack of communication and dialogue with the town. Frankly the town has not acted like it wants the building. We [the bank] have made attempts at talking but have heard nothing back,” Whalen said. “Unfortunately on Jan. 9, we will have to go forward with the foreclosure unless we have a dialogue between now and then and we feel that we are close. If we are miles apart then we will go forward with the foreclosure sale and more than likely we will be the owners of the building unless someone outbids us.” Whalen said the bank is not interested in a lease, but is willing to stall the foreclosure “if there can be a dialogue that would indicate that we could come to terms on the price of the property.” He added if the bank had to evict, “it wouldn’t be that day.” Notice would be given and the library would be given “days or weeks, but not months.”Cramer spoke again, and asked if anyone knew who might be interested in buying that building.” He added the bank should consider donating the building and if not “perhaps we [its customers] should take our business somewhere else.”Whalen responded. “It’s your choice if you chose to continue to use the services offered by the bank,” adding “the bank has an obligation to its shareholders,” as, “it’s not our money to lend out.” He added the bank has not gone looking for potential buyers since it had hoped the town would buy the library. Whalen also noted the library was recently appraised at $1,450,000.“It’s a community building now, you [the town] are the logical buyers, but if you don’t want it that’s OK,” he said.Coons concluded the evening’s discussion on the matter reviewing what the town has been doing and indicating that the town has been speaking with other parties, but that now “the town is ready to talk to the bank” in hopes of reaching a resolution.