The Mitchell City Council will look to enter an agreement on Friday with the property owners of a corroding Main Street building that would pave the way for the structure to be demolished.

The former Palace City Pawn Shop building located at 115 and 117 N. Main St. has prompted the council to hold a special meeting at City Hall, where it will take action on an agreement with property owners Austin and Laretta McPeek.

According to City Attorney Justin Johnson, the agreement states the McPeeks will be responsible for selecting a demolition contractor to safely and legally demolish all nuisance structures on the property.

The cost of the demolition project is estimated at $81,632.80, which the city will pay up front. However, the McPeeks will pay the funds back to the city through a loan agreement, which would entail monthly payments to the city beginning July 1, 2019.

A hole that recently collapsed on the south wall of the structure on 117 N. Main St. led the city to deeming it a public nuisance due to the noticeable damage from outside the building, which caused bricks to fall into a nearby parking lot that's not owned by McPeek. The infrastructural damage to the building played a role in McPeek relocating his business to 700 N. Sanborn Blvd. Both buildings will be demolished, according to the agreement, and McPeek declined to comment on the matter.

According to the agreement, the McPeeks are to repay the total initial balance of the demolition project within 20 years, which equates to 240 monthly payments. The agreement also states the loan will not accrue any interest.

Davison County property records indicate the 117 N. Main building was constructed in 1910 and measures at 25 feet wide and 142 feet long, valued at $58,725.

Another stipulation found in the agreement states that in the event of another property owner on Main Street entering into a more favorable agreement with the city for demolition of a nuisance building, McPeeks may request that the City Council forgive all or part of the remaining balance through renegotiating the terms of the agreement.

The agreement also grants the city the option to purchase the property for $1 in the event McPeeks default loan repayments. The property owners and the city will cooperate in exploring opportunities for redevelopment of the property.