justin.schneider@heraldbulletin.com

Officials in Pendleton are looking forward to stretching their legs this fall.

Pendleton Town Council President Don Henderson said the town is about to close on the sale of the Madison Community Bank building on the corner of State Street and Pendleton Avenue. The building will become the new town hall, housing municipal offices.

“It gives us some really great space and it’s also a historic building located in the center of town,” Henderson said. “Really, it makes a good anchor for the community. It will serve our needs for several years to come.”

Pendleton Town Manager Doug McGee said the move will expand the space available from 4,000 square feet at the current town hall to 12,000 square feet.

“We’re very cramped, we’re literally full to the seams,” Henderson said. “We already rent space for the clerk-treasurer’s office from a building next door.”

The new town hall building will be so spacious, in fact, that Henderson has invited Fall Creek Township Trustee Mike Hart to establish an office there.

Henderson said municipalities derive a purchase price of such buildings through the average of two appraisals and, in this case, that figure came to $527,500. On May 24, Pendleton officials expect to hear from the State Tax Board for approval of a bonding issue. Henderson said the town would like to bond for $600,000 to purchase the building and pay for minor remodeling.

The tax impact of $600,000 would be four cents or just over 1 percent; the impact for a $100,000 home would be around $15 a year.

“(This) provides you enough to acquire the building, pay for the cost of proceedings for financing and a few other things,” accountant Jim Treat of O.W. Krohn and Associates told the town council. “There will be a very small amount of money for some renovations initially.”

Funds from the sale of the current Pendleton Town Hall will help offset the cost of remodeling.

The former LoBill’s building and a lumberyard were also considered for the project, but the Pendleton Town Council deemed the bank building the best value. Architects asked by the council to gather information on renovations reached dollar amounts of $2.5 million to $4.5 million.

“We’re not going to do renovations, we’re going to do some remodeling,” Henderson said. “The building itself is in good shape so we can make use of the building as it is.”

Officials were also careful not to burden taxpayers too heavily. Homeowners will soon feel the effect of bonding for South Madison Community Schools Corp.’s new $30-plus million middle school.

Henderson said he expects the sale of the building and the availability of bond money to happen in August or September. Remodeling of the building can then begin.