Church's purchase nixed: Official says company now wants building sought by Lutherans

    POCATELLO — The possibility of landing a major employer won out over a church’s desire to relocate to a 200,000-square-foot building in town.

    After being informed that an unnamed employer has made an offer on the former Ballard Medical building, the City Council unanimously decided Thursday not to allow Grace Lutheran Church and School to apply for a conditional use permit to purchase the vacant building.

    The council very reluctantly and apologetically voted 6-0 not to approve Grace Lutheran’s request to apply for the permit to purchase the massive Ballard building  at 1999 Alvin Ricken Drive as the new home for its church, school and child care facility.

    “This was the hardest decision I think the council has had to make,” Mayor Brian Blad said after the vote.

    Bannock Development Corp. Executive Director Gynii Gilliam informed the council during its regular meeting that she was notified by e-mail Thursday afternoon that a major company the city has been recruiting had made an offer on the building.

    She said the energy company, which she could not publicly name because it could jeopardize the deal, would employ 200-300 people in light manufacturing. Gilliam said Bannock Development respects and is proud of what Grace Lutheran is doing to educate area children and the group actually highlights the church as an example in its marketing material.

    But she said the Idaho State University Research and Business Park, where Ballard is located, is ground zero for the city’s economic development efforts and locating a church and school in the middle of it “will limit, if not terminate, its appeal.”

    She said many companies dealing with sensitive materials or high voltage do not want the liability and risk associated with having a lot of curious children as neighbors.

    Gilliam said a lot of companies are lured into visiting Pocatello by the Ballard building. “Removing the Ballard facility from our economic development inventory would severely hamper our efforts to create high-paying jobs within our community,” she said.

    She said Bannock Development is currently working with two companies interested in potentially locating at the Ballard building.

    “Both companies are likely to find another location if we allow a K-12 school at the ISU Research Park,” she said.

    Rev. Jonathan Dinger, Grace Lutheran’s head pastor, told the council that the church’s planned renovation of the facility would entail the expenditure of about $10 million in the local economy and that total could exceed $20 million in just a few years.

    He also noted the church’s plans to partner with the Pocatello/Chubbuck Auditorium District to also establish an events center in the building would have a significant economic impact on the city.

    Grace Lutheran plans to sell its current 11-acre property on Baldy Avenue to the Academy at Roosevelt Center, which would return the property to the tax rolls.

    Following the meeting, Dinger said he was deeply disappointed by the decision.

    “It’s a huge disappointment because the merits of the proposal stand on their own,” he said.

    He said it was troubling that word of an anonymous offer from a major employer interested in the building came in at the last moment, but he would be happy if it comes to fruition.

    “If there is in fact an industry that would move in and occupy that building and put it to its full use, we would be thrilled with that,” he said.

    Realtor Steve Vigliaturo, who is representing the church in its effort to purchase the building, said he talked to the listing agent Thursday and there was no other offer on the building as of 5 p.m.

    Vigliaturo said Grace Lutheran is first in line and any other offer would take a back position to the church’s offer.

    Gabe Flicker, executive director of Grace Lutheran School, said he was very suspicious of the timing of the anonymous offer. “It’s very obvious we should be suspicious of that offer because of the fact that the listing agent has said the offer does not exist.”

    The property is located in an office park zoning district and city staff recommended denial of the church’s request because city code doesn’t allow for religious institutions or educational uses in this zoning district.

    Councilwoman Eva Nye said her decision boiled down to doing what’s in the best long-term interests of the city. She noted that three of her four children were educated at Grace Lutheran School and said it was an extremely hard decision for her to make to vote against the church’s request.

    But, “A school is not an appropriate use for that building,” she said.

    Councilman Steve Brown, who also has friends at Grace Lutheran, said both sides of the issue had good arguments, but he had to do what’s best for the entire community.

    “While it’s difficult to look my friends in the eyes and say ‘no,’ it’s the right thing to do,” he said.

    Council members also said they received a letter from Idaho State University Thursday informing them that allowing a church and school in the research park would go against the development covenants ISU agreed to when the park was first developed.

    Councilman Roger Bray said when he first heard about the church’s plans for the Ballard building, he was excited and thought it would be a good idea.

    But after hearing from several members of the business community, he changed his mind.

    “The business community really sees that area as the target zone for economic development (in Pocatello),” Bray said. “I talked with several individuals who just did not see (a church and school) as being compatible at all for that business park.”

    Bray also noted that ISU negotiated in good faith with the city and Bannock Development in the creation of the park and approving the church’s request would go against the spirit of ISU’s original intent for the research park. 

    “I weighed this probably more than any other issue,” Bray said. In the interest of maintaining integrity with ISU and Bannock Development, “I cannot go back and break that type of promise.”

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