Mexico Beach council halts city hall project

Published: Thursday, July 31, 2014 at 09:52 AM.

A new Mexico Beach City Hall is headed back to the drawing board.

During a special meeting on Monday, the City Council unanimously voted to accept an insurance settlement on the historic Parker House.

The final offer on the structure, which was purchased by the city in 2011 and caught fire days later, was $750,000 plus $61,100 in rent reimbursement for the years spent on a temporary building used as a city hall.

When that building was purchased by PeoplesSouth Bank, city employees moved into the Public Works offices.

The acceptance of the settlement, which came nearly three years to the day of the claim, leaves the council with $649,000 to pay for a new city hall.

Original estimates from Cathey Construction for a two-story city hall held a price tag of more than $1 million dollars.

“With $649,000 left, we can’t build what is proposed,” said Councilwoman Mary Blackburn. “I think we have to start with a blank slate.”

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