SPENCER — Spencer took the first step Tuesday toward solving a long-standing problem: Park Plaza.

The plaza, constructed in the early 1960s along Salisbury Avenue, is in the center of Spencer’s business district. Its retail spaces have been mostly vacant since the early 2000s, according to Town Manager Reid Walters.

The Spencer Board of Aldermen agreed Tuesday to draft a purchase agreement with PI Holdings, the property’s owner. If approved by the owner and the Local Government Commission, the board plans to move town offices and the Police Department into the space.

Walters said the purchase agreement is “Step 1” of breathing life into the plaza and solving space needs for municipal offices.

A 2015 study revealed that Spencer municipal offices are rapidly running out of space. Town Hall is a building that originally housed YMCA dormitories.

“There are things that our Police Department needs that this building can’t give them,” Walters said.

Town Hall’s original design also makes comprehensive renovations impractical.

“The cost of doing that would be between $6 and $8 million. With the town’s resources over the next few years, it’s simply not feasible,” Walters said.

If the town were to take on that kind of debt, it would need to instate a 13-cent tax hike, he said.

Moving offices to Park Plaza would be far cheaper and would offer room for growth. After talking with the property owner, Walters said he believes the town could purchase the property for roughly $600,000. Upfitting the space to suit the town’s needs would cost about $1.4 million.

The move would offer “significant cost savings to the town” that could last up to 40 years.

Walters proposed purchasing a 20,000-square-foot part of the shopping center, as well as an outparcel running along Salisbury Avenue.

The town would turn the outparcel into a green space, redo the parking lot and building facade, and rework the space. Walters said the property owner agreed to repair the parking lot, facade and roof on the remaining section of the plaza to match.

Hopefully, moving town offices into the space will bolster Spencer’s business district, as well as improve aesthetics, he said.

Walters recommended that the town use 12,000 square feet of the property to meet its current needs and rent out the other 8,000 square feet to smaller entities. Walters said he’s already heard from a few interested parties.

Tuesday’s vote does not constitute a contract or official purchase of any kind, Walters said.

“All this does is establish a purchase agreement, which is Step 1,” he said.

The vote will allow Walters to go ahead with environmental studies and clear other requirements before submitting the town’s intent to purchase to the Local Government Commission for approval.

“They basically call the shots to ensure that any move that we make is within our means financially,” Walters explained.

Based on talks Walters has already had with the state entity, things looked promising.

“They believe it is feasible for us to do it within our financial needs,” he said.

Board member David Lammano wanted to know how long everything would take.

“What type of timeline are we looking at?” he asked.

Due diligence typically takes 90 to 120 days, Walters said, and then the application would go before the commission at its next meeting.

Development of the property might take as little as another 120 days.

“It could potentially be done in eight to 10 months,” Walters said.

Mayor Jim Gobbel wanted to confirm that approving a purchase agreement would not tie the town into anything.

“So this is just a tool to keep us moving forward?” he asked.

It is, Walters said. There are minor costs associated with completing due diligence, he said, but that money has already been set aside in the budget.

Gobbel said the plaza was the “focal point” of Spencer.

“And right now, it’s somewhat of a derelict shopping center with a huge sea of asphalt out in front of it,” he said.

The board unanimously approved the purchase agreement.

Contact reporter Rebecca Rider at 704-797-4264.