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demolished buildings simply to create empty <br />spaces, without first obtaining construction <br />bids for the cleared lots. Mr. Oxian said the <br />space occupied by the Southern Hotel was to be <br />put up for a bid; the most likely bidder was <br />Adams Engineering, next -door to the Southern <br />Hotel. Adams Engineering planned to expand <br />their building onto the cleared lot, and had <br />written the City a letter to that effect. <br />At the last Council meeting, it had emerged <br />that the present owner of Southern Hotel had <br />already (in 1990) tried to sell the Hotel <br />directly to Adams Engineering. (Mr. Holycross <br />here pointed out that Schafer Gear, not Adams <br />Engineering, was negotiating for Southern <br />Hotel.) Mr. Oxian resumed that Schafer Gear <br />had failed to come up with a final decision, <br />so the deal attempted in 1990 had fallen <br />through. <br />A Councilwoman had asked, he said, why the <br />owner wasn't now negotiating directly with <br />Schafer Gear, as he had in 1990. Why was he <br />instead selling the Hotel to the City and <br />letting the city demolish the property? Once <br />the lot was cleared, the City could resell it <br />for no more than approximately. $30,000. <br />Demolishing the Hotel, he said, would cost <br />much more than previously anticipated: <br />$100,000 to demolish the Hotel, $50,000 to buy <br />it, and $40,000 to remove the asbestos. The <br />Council now had doubts about spending so much <br />money for demolition, particularly since the <br />lot's resale value was so low. <br />Mr. Holycross stated that, at this point, the <br />Hotel seemed beyond saving. Mr. Oxian said <br />the case was now in court, and eminent domain <br />proceedings were underway. <br />Mrs. Sporleder questioned the City's use of <br />eminent domain to take privately -held property <br />and resell -it -to other private investors. <br />Mr. Oxian said that the City could - demolish <br />even landmark properties within one year of <br />obtaining ownership; it was a sad situation. <br />Mrs. Choitz described the HPC's attempt to <br />save the Colfax Theatre on the grounds that <br />federal funds were involved. At that time, <br />they had discovered that this funding was no <br />longer considered "federal" because it had <br />9 <br />