It was last on the agenda, but was the reason the council chambers was packed to capacity with citizens and TV cameras.

On Monday, the Gardendale City council approved selling the city hall building and purchasing the former Caufield Square property off of Mt. Olive Road.

The vote was split 4-2, with council members Gary Morris and Peggy Tumlin opposing both items.

CVS Pharmacy wants to occupy the current city hall location at 970 Main Street, directly across the street from Walgreens. The city accepted an offer of $1.85 million for the building from T Investments LLC, a purchasing company for developer Halstead Contractors LLC. The price is reportedly $800,000 more than the estimated value of the property.

City employees have until September 2012 to vacate the building. The city will not pay rent during the next 16 months.

Gardendale Mayor Othell Phillips in a presentation Monday laid out the city’s plans to develop the 22-acre site. He said tentative plans call for building a town square that would include city hall in addition to businesses.

The numbers

Municipal space would take up about two acres, while roads, entry-ways and parking lots would take up three acres. That would leave 17 acres for the city to sell to businesses or possibly gift to businesses that would agree to move to Gardendale, according to councilman Alvin Currington.

The sale of those parcels, as well as sales tax revenue generated by businesses located at the site, are key components of the city’s plan.

The city would spend an estimated $5.55 million on the project to buy the land and build city hall, a police department and jail.

The city has $2.4 million cash on hand: $1.85 million for selling city hall and $550,000 for recently selling the former Anderson boat building. Phillips said the city can also sell the inspections building and a piece of city-owned property at the corner of Moncrief Road and U.S. Hwy. 31 for $650,000, although he said those properties have not yet been placed on the market.

If the city sells those two properties, it would have just over $3 million cash on hand.

That means taking out a loan of $2.5 million to complete the $5.55 million price tag for new city facilities.

However, Phillips and Currington said selling parcels at the town square could cut the cost significantly by generating $650,000 if the city sells half of the property, and making more than $1 million if it sells all of it.

In addition, they said sales tax from businesses there could bring in between $370,000 and $740,000 a year.

The expected revenue from selling parcels and the sales tax figures are estimates; city officials say they are conservative estimates.

“There’s no way to get around it — initially there will be a debt incurred,” said Currington. He said options include getting a bank loan, a bond or using the city’s cash reserve.

Even people opposed to the city selling city hall and buying the former Caufield Square site agreed Monday that the city received a phenomenal deal on the site. The city is paying $1.62 a square foot for the property, and is selling city hall for $26 a square foot.

“This is the biggest potential for economic development we’ve had in a long time,” said Phillips. “This eliminates several problems, one being the lack of activity on Caufield Square. This will spur activity. Also, city hall will be a one-stop shop to coordinate business.”

Officials said contractors and others have complained that city hall and the inspections department are in separate buildings, which reportedly has caused confusion with obtaining permits.

The opposition

The most vocal opponent on the city council is Peggy Tumlin, who said Monday that she’s against selling the city hall building in part because the city should be spending more money on public safety.

“I ask you to revisit this decision,” Tumlin said to the council Monday. She said the Gardendale Fire Department needs a new fire hall and new equipment because the city is under-served by the department.

“We are ignoring the fact these people are paying high insurance rates” and are not receiving proper protection, she said.

Phillips pointed out that within the past seven years, the department has transferred from a volunteer to a full-time department and has received a new fire truck and other equipment.

Nathan Aldrich, a Gardendale firefighter and member of a firefighters’ union, stated during the meeting that the city refused recently to spend $400,000 on a new fire station because it did not want to borrow money, but now is going to borrow money for a new city hall and jail.

“What’s your stance on public safety?” Aldrich asked the council.

Some members of the audience oppose the city’s decision because they say there is no guarantee the city will be able to sell any of the land surrounding the new city hall.

“I’m really concerned about us building city hall and having 17 acres that’s unsellable,” said Bill Clemons.

Resident Misti Boackle pointed out that the city should not take out a loan after it voted in October to raise sale taxes in the city by 1 percent starting in January 2010 after some officials said the city was in “dire straights.”

Boackle and Clemons both live on Moncrief Road near one of the proposed sites for a new city jail, which is next to the fire department. Boackle has children and is concerned about inmates escaping.

Clemons was also concerned about the jail and courthouse being built near Moncrief Road, saying parking would be a problem on court days. He feared the parking lots would be clogged at the nearby fire station, Pinnacle Bank and post office.

Jail and police department

According to Phillips, the city does not yet have a plan for where to relocate the police department and the city jail.

He said options include building them at the Caufield Square property near the new city hall, building next to the fire station or at other city-owned property. Phillips is also exploring the option of a “regional jail program” such as the one Mountain Brook, Irondale, Homewood and Vestavia Hills were discussing.

“Before that decision will be made, there will be a lot of studies just like on (the city hall,” Phillips said. “We’re just trying to do things that help us move forward.

Two groups that support the sale of city hall and gave a favorable recommendation to the city council are the planning and zoning board and the newly-formed economic development committee.