Dearborn Towers Sale Held Up By Asbestos Concerns

The planned sale of the Dearborn Towers has hit a road block, Mayor Jack O'Reilly confirmed Tuesday.

A concern over asbestos in the property has caused the need for further inspection before a deal is reached with any buyer.

The city publicly announced its intention to sell the Clearwater, FL, retirement property in late 2010, after voters approved the move in 2007. Prospective buyers were numerous, according to the city.

But Mayor O'Reilly explained that an evaluation of the property is needed "to determine how (the asbestos) will impact remodeling and what is the extent of it."

While evaluation costs will likely be in the tens of thousands, the city is also taking a hit to revenues–and to the general fund–as long as the property is still in their possession.

City Council on Tuesday approved an insurance contract for the facility in the amount of $136,647.87 plus applicable taxes. The amount is a $5,000 increase from last year. However, Council President Tom Tafelski said that the city was advised to keep it insured “until we sell it and/or decide what the final course of action is.”

According to a budget memo written by O'Reilly in advance of the fiscal year 2011-12 budget approval, expenses for Dearborn Towers exceeds income by $200,000-300,000 each year. Additionally, it is expected that working capital for the property will be used up by December 2012.

As of 2011, the towers .

The $6 million of revenue expected to be generated by the sale of the towers was included in the city's FY 2011-12 budget–meaning that the continued delay of the sale could leave the city with an even larger gap to close as they balance the budget for FY 2012-13.