FOLEY — The city of Foley has a new piece of real estate.

During a special-called meeting Wednesday evening, the Foley City Council approved the $1.5 million purchase of the old Peavy building, which is located on the intersection of Cypress and Section.

“It’s a 94,000-square-foot building that sits on 10 acres of property,” Foley Mayor John Koniar said at the meeting.

He explained that the purpose of the purchase was not to acquire real estate, but instead to provide an opportunity to attract businesses to Foley.

“It’s a large building that can handle a large business,” Foley City Administrator Mike Thompson added.

Given the square footage, the building is large enough for a sizeable business to use or for three or four smaller firms to settle into.

“It’s got walls that can be used to separate businesses if they need to,” Koniar explained.

According to City Councilman Ralph Hellmich, this property adds to the city’s economic offerings.

“We’ve got the Advantage Site,” he said.

Hellmich explained that while the Advantage Site enables businesses to build from the ground up, this newly-acquired property is turn-key ready for businesses.

“This building gives them a lock-and-key-ready opportunity,” he said.

Koniar added that the purchase from the Peavy family is a project the city has been working “off and on for the last five years.”

The council’s action followed an executive session that took less than 20 minutes. With the action, Koniar was given authority to sign documents related to the purchase.

The council will next meet at 5:30 p.m. Monday. At that time, it will consider entering into a guaranteed cost-savings contract with Schneider Electric Buildings Americas Inc.

“The intent of this contract will be to substantially reduce the energy and operational costs for the city of Foley while greatly improving city facilities and infrastructure,” a public notice states.