RICHMOND — The city of Richmond, which has been struggling financially in recent years, soon will take sealed bids on three pieces of real estate declared as surplus. Two of them are currently used rent-free by non-profit organizations.

They are:

• The former fire station, 1405 E. Main St., now occupied by the Daniel Boone Chapter of the American Red Cross, and appraised at $82,000.

• The former police roll-call building, 314 W. Irvine  St., used as a meeting place by several Madison County veterans organizations, and appraised at $70,000.

• Lot 12-A on Golden Leaf Boulevard off Duncannon Lane, appraised at $125,000.

The lot on Golden Leaf originally was purchased as the location for a fire station, according to interim City Manager Jimmy Howard. When an existing building became available in the industrial park north of Duncannon Lane, the city found it more economical to convert that structure for use as a fire station, he said.

The order authorizing the sale entitles to city to reject “unsatisfactory” bids and then attempt to sell them at auction.

Although no minimum bids were included in the order, members of the commission said their goal was to obtain at least the properties’ appraised value.

Staring with sealed bids is less costly than a public auction, they said. An auction also would not guarantee prices approaching the appraised value.

The commission agreed to donate one piece of surplus property, an old police cruiser, to Madison Airport for use by pilots who fly in and need ground transportation.

The city had hoped to already have begun demolishing three condemned houses, Howard told the commission, but an additional legal step was required for one of the buildings, which is a multi-family dwelling. He decided to wait until city Codes Director Joe Lillis returns from vacation to verify that all legal requirements have been met, the city manager said.

The houses are located at 150 Parrish Ave., 320 N. Second St., and 506 E. Irvine St.

The city will rent a piece of heavy equipment and have its public works personnel demolish the buildings. The lowest of three bids for the demolition came it at about $45,000, and Howard said he believes the city can do the work for no more than $12,000.

The commission tabled an ordinance that would have set a fine of $500 per day for operating a business in the city without a license. The city’s occupational license ordinance sets no penalty for non-compliance, said City Attorney Garrett Fowles.

Mayor Jim Barnes said the objective of the ordinance should be to have businesses purchase the $25 license and beginning paying the 2-percent net-profits tax, and not to put them out of business.

A fine of $500 “right off the bat for a little old business person who didn’t know he needed a license is pretty stiff,” Barnes said.

The mayor said he believes violators should first be given a written warning and then cited to court the next time they are found to be operating without a license.

Anyone cited to court could have the charges dismissed and court cost waived if proof of having purchased a license was shown to a judge, the city attorney said.

Commissioner Jason Morgan asked if the teenage boy who mows his neighbor’s lawn would have to buy a business license. Would a non-profit organization also need a license? He also asked.

Commission Donna Baird asked if a teenager who occasionally baby sits would need a license.

Fowles said the city’s ordinance defining “business” makes no distinction between a teenager mowing lawns and someone who operate, for example, a restaurant.

The mayor asked the ordinance be tabled until the issues are resolved and the ordinance possibly rewritten.

Both the mayor and other members of the commission also said they believe a number of businesses are operating in the city without being licensed and are not paying the net-profits tax. The city probably could profit by hiring someone to search for illegal businesses, they said.

In other business, the commission:

• Passed second reading of an ordinance banning semi-trailers from Rice Court and setting a $75 fine for violation.

• Passed second reading of an ordinance setting a 35 mph speed limit for all of Boggs Lane, and 15 mph for Parrish Avenue and Langford Court.

• Heard first reading of an ordinance changing from business to residential the zoning of three lots at the end of Bryson Way at the intersection with Berea Road.

• Hired Meghan Althauser as a part-time seasonal receptionist for the Tourism Department at $8 an hour.

• Accepted the retirement of Wayne Roe, a custodial assistant/currier.

• Accepted the resignation of parks department athletic director Seth Breitner, who has taken a similar job in Elizabethtown.

• Accepted the resignation of Tom Snyder from the Richmond Industrial Development Board.

Snyder, an original member of the board, has retired from business and lives most of the year away from Richmond, Howard said.

Bill Robinson can be reached at brobinson@richmondregister.com or at 624-6622.