Renovation costs for LabCorp site threaten Elon town hall plan

Town-commissioned assessments of the 56,000-square-foot LabCorp facility at 112 Orange Drive found extensive renovation needs that could push total costs into the millions and complicate Elon's plan to use the site for a future town hall and police station.

Environmental, architectural and structural/mechanical reviews completed during the town’s due-diligence period identified asbestos floor tile in portions of the building, ponding on the roof, drainage and pavement deficiencies, and multiple HVAC units nearing the end of their useful life. Consultants produced phased cost estimates that laid out a range of repair scenarios: roughly $4.4 million to renovate warehouse sections and about $2.7 million to refurbish the office wing, with an overall renovation scenario cited at up to about $7 million.

Town Manager presented the findings to the Elon Town Council on Jan. 18 and urged council members to weigh those projected expenses ahead of a planned council decision on Jan. 26. The due-diligence window in the purchase consideration remains open through Jan. 28, meaning the council will decide while negotiations and inspections are still active.

The facility’s condition illustrates the financial unpredictability municipalities often face when converting existing industrial or laboratory space for civic uses. For Elon, the numbers alter the calculus on whether buying the LabCorp site would be a cost-effective path to consolidating municipal services or whether alternative locations or construction of a new facility might make more sense over the long term.

Local taxpayers and municipal operations stand to be directly affected. If the council moves forward with purchase and the higher-cost renovation scenario materializes, the town will need to identify funding sources and adjust capital plans. If the council declines, Elon will continue searching for a site large enough to house both administrative offices and the police department, a process that could extend timelines for facility consolidation and long-term planning.

Council members received the consultant reports and will consider them alongside broader budget priorities at the Jan. 26 meeting. With the due-diligence period ending Jan. 28, the coming week will determine whether the town advances toward acquisition, seeks renegotiation with the seller, or walks away from the purchase option.

For residents, the immediate implication is fiscal: the council’s vote will shape near-term budget choices and the timeline for municipal facilities. Expect further public discussion at the Jan. 26 council meeting and additional updates as the town completes its due diligence and decides how to proceed.