An ad placed by the city has appeared in The Leader’s classifieds, seeking bids through Sept. 21 for the demolition and disposal of the Cherry Street building intended for affordable housing.

Next month, city council will be presented with two options: the building, in addition to the land, may be listed for sale; or, per staff recommendation, the building may be demolished.

If the building is demolished, the land may be placed on the market and sold, according to a press release from the city.

“The big decision is, what do we do with that money?” said John Mauro, city manager.

One option is reducing debt. The city would also have the option to pay off a portion of the bond (which currently has a $62,000 annual payment until 2040), or repurpose the funds for a specific initiative through a council resolution.

The building itself, located at 100 Cherry Street, is a 5,337 square foot, three-story stucco apartment complex. It was floated in by barge from Victoria, BC in 2017 after the city and the Homeward Bound Community Land Trust entered into an agreement to deliver affordable housing.

The city took out an $834,000 bond in 2018 to fund engineering, design, permits, and pre-construction costs. They approved a loan with Homeward Bound with anticipated repayment funded partly by the rent of the eight units it would provide.

Homeward Bound exited the project when they ran into insurmountable financial troubles.

The city authorized the transfer of ownership to Bayside Housing in a 6-1 council vote. However, due to rising costs of construction and labor, Bayside Housing soon divorced the project, as well.

The city acknowledges the Cherry Street Building project was an error.

“This does not mean we will stop working toward affordable housing,” Mauro assured.