PORTAGE | The city will make an offer to purchase the H&R Lounge, 6392 Central Ave.

The Redevelopment Commission on Wednesday approved making an offer of $153,500 to purchase the building and property.

Economic Development Consultant John Shepherd said that is the top amount the city can offer for the property. It is the average of three appraisals secured by the city for the property, and, by law, the city can't make a higher offer.

"We will make an open market offer that the owner can reject," said Shepherd, adding he understands the property, which is up for sale, has a listing price significantly higher than what the city can offer. He added, however, that the listing price also includes the tavern's liquor license which the city is not interested in purchasing.

The building lies between two city-owned properties -- the former Dollar General store to the west and the Clark service station to the east -- and is in the middle of the city's downtown district, which is undergoing redevelopment.

Shepherd said the city is seeking bids for the demolition of the Dollar General store. Those bids are due at the commission's November meeting.

The city also intends to demolish the former service station, but have not sought bids for the work. If the city purchased the H&R Lounge building, it also would be demolished. Those two properties would likely be demolished together to save the city money.