After less than two months on the market, the Town of Huntsville may have a deal to sell the former MTO building.

At a special council meeting held in closed session Wednesday, Huntsville town council authorized the potential sale of the building, according to a press statement issued by Mayor Claude Doughty.

“It is anticipated that, upon completion of the transaction, the budget net revenue for this item will be met,” said the statement.

In the approved 2008 budget, a net revenue of $845,000 is anticipated to come from the building, to be used in the River Mill Park budget.

When reached for further comment, Doughty said he couldn’t say much else about the deal, expected to close mid-summer.

“The proposed use will be a commercial use, which will fit well within that space, it’s a good use for that property,” he told the Weekender. “I’m happy to see that that potential transaction may go forward because it continues to help the revitalization of the south entrance . . . which is a priority for our council.”

On March 13, after receiving pre-approval from council, the finance and administration committee approved the listing of the property for $1.19 million with Homelife Muskoka Real Estate Ltd.

The buildings and 4.3-acre property were listed with an open closing date.  When asked what percentage commission Homelife would make off the sale of the building, Doughty said he could not comment on that.

He did say that the name of the buyer and the selling price would be made available once the sale had closed.

The fate of the building, located at 215 Main Street West, has been up in the air for months as council grappled with the best use of the property.

It was purchased in February 2001 by the municipality for $507,000.

Since that time, the space has been leased to various businesses and organizations by the municipality.

A $500,000 debenture was used to finance the purchase of the building, and about $426,000 remains, Doughty told the finance committee in March.

Doughty also told the committee that the letters of appraisal had put the value of the property at about $700,000 or $800,000.