ASHLAND — The ailing G.B. Johnson building in Ashland’s downtown may soon have a new owner.

Ashland businessman and real estate developer John Christie has reportedly entered into a 60-day contract to purchase the seven-story building at 1401 Winchester Ave. from the Kentucky Appalachian Foundation for $1 plus an assumption of debt said to be around $500,000.

Christie was out of town Wednesday and could not be reached for comment but Judy James, a spokeswoman for Christie, confirmed he was considering purchasing the building but said no additional information would be available for several weeks.

KAF President Kevin Harrison confirmed this week that the organization’s board of directors had approved an offer but was not at liberty to discuss it. Harrison — whose business Choices and Changes Youth Services is a tenant of the building — was appointed president of the foundation last year.

Harrison and a five other individuals who work for a variety of tenants in the building replaced the former KAF Board after they all stepped down last September. At the time, outstanding debt with utility companies and a dwindling number of tenants nearly forced the building into condemnation proceedings with the city of Ashland.

New board members took over the foundation in an effort to turn it around and make needed improvements to the building. The situation, however, has remained difficult throughout the last year and this fall its utility bills again became unmanageable and the KAF was forced to strike deals with the city of Ashland and Columbia Gas to maintain utilities.

WLGC Radio’s business manager Bobby Hall and KAF board member also confirmed a deal was in the works Tuesday but also said he could not discuss it.

He did indicate that the potential deal would allow the radio station to continue operating at its current location. “We have no intentions of leaving,” he said. “We’re just a tenant who is happy to be in Ashland and hope to be here for years to come.”

Hall said he was “pretty optimistic with the procedures that are taking place right now.”

Ashland Economic Development Director Chris Pullem, who has been working with the KAF board for more than a year to address some of the building’s challenges, praised the development.

Although he also couldn’t discuss specifics about the contract, Pullem said he hopes the building’s new owner would continue allowing the Ashland Community and Technical College Entrepreneur Center to operate in the building.

“We’re happy that they seem to be gaining ground and they have some momentum going right now and we’re excited that potentially that building will remain a contributing part of our downtown,” Pullem said. “We hope it has a long life and that it can grow local business and we’re excited about its potential.”

Larry Ferguson, director of business and industry services at ACTC, said it is his understanding the center will be able to remain in the building. He said the entrepreneur center currently houses six small business incubators.

“We’re dedicated to remaining in that building I hope that a new owner would address some of the challenges we’ve have,” he said.

Pullem, along with Harrison and Hall, all said they could not address questions about how the deal would affect more than $500,000 in state and federal grant obligations the KAF has.

Pullem said the City of Ashland’s parking lot located directly across the street from the G.B. Johnson building and used by its tenants is not up for sale and will be retained by the city.

CARRIE STAMBAUGH can be reached at cstambaugh@dailyindependent.com or (606) 326-2653.