Sioux City, IA city officials said today they hope to find more federal and state dollars to help pay to tear down the fire-damaged KD Station, which now carries a price tag of $5 million to $6 million.

"We estimate it will cost $2.6 million for asbestos abatement," Patty Heagel, community development director, told the City Council during a capital improvements program wrap-up discussion. "We have $5 million the budget and it could be $6 million."

Mayor Mike Hobart said this was the first time he heard that $6 million figure mentioned. Heagel said the higher amount arose during discussions with a consultant on Brownfields grant funds.

"We hope to have secured $2.8 million of that amount needed (to demolish the building)," she said, including a $700,000 grant from the Department of Housing and Urban Development.

Brownfield grants are made for buildings located in such places as stockyards where there is a real or perceived contamination from asbestos, chemicals or other sources.

Once the building is razed, Heagel said, there would be between three and five acres of land available for redevelopment.

"We had a fire in the KD Station," Councilman Aaron Rochester noted. "It's a gigantic building. There's a danger part to it."

Heagel agreed, "It's been an extreme problem through the years."

Rochester said his second concern centers on losing potential developers if the city has to wait two years to tear it down. Heagel agreed, noting that it is difficult for many people to see the potential for development on that site when looking at the building, which the city has red-tagged.

To date, a consultant has completed the asbestos survey and outdoor storage tanks have been removed. The council has budgeted $2.15 million in this year's budget for the demolition and agreed Tuesday to put $2.813 million in next year's 2009 budget.

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