City Council approved two ordinances to acquire the James E. Mackie American Legion Post No. 499 at 59-63 W. Main St. for $77,500.

With no comment from City Council members or the public, two ordinances (O-10-19 and O-13-19) unanimously were approved during the governing body’s regular, public meeting on May 13. The legislation originally was introduced on April 8.

The first ordinance appropriates $90,000 and authorizes $85,500 in bonds (and $4,500 down payment) to fund the purchase. The second ordinance authorizes the acquisition of the property.

As part of the acquisition, Redevelopment Director Robert Landolfi said the city will help the American Legion post to find a new meeting location. The city originally had granted the property for use by the organization years ago with a caveat that if it were to sell it, the property would revert back to the city. Landolfi said the city is essentially buying out the Legion’s rights to the property without getting into too convoluted a process. With similar civic and fraternal organizations struggling nationally in recent years, it’s likely that the purchase price includes funds to cover outstanding debt.

There are no immediate plans for the West Main Street property, according to Landolfi, but the city had an opportunity to acquire the property, which likely will involve some sort of future redevelopment.

The property is need of significant rehabilitation after being vacant for many years, according to an appraisal commissioned by the city. The appraisal established a value of $150,000 but “given the condition and anticipated rehabilitation costs, the parties have negotiated and agreed upon a purchase price of $77,500, subject to approval of Municipal Council,” according to the ordinance. The acquisition price likely includes

James E. Mackie Post No. 499 at 59-63 W. Main St., (Block 160, Lot 7) is assessed for $192,400, according to property records, but is exempt from property taxes since it’s owned by a nonprofit organization. An assessment of $192,400 would normally generate property taxes of about $12,877 based on an overall tax rate of 6.693 per $100 of assessed value.

There is another American Legion property in Rahway. American Legion Post No. 5 is located on Maple Street, just west of St. Georges Avenue.