ENCINITAS - With one member apologizing for the city's lack of disclosure and transparency, the City Council voted 5-0 on Wednesday to budget $1.5 million to remodel a public works facility that staffers had billed as "move-in ready."

The action authorized the immediate tapping of $750,000 from a capital improvement budget that would have spread out the allocations through 2011.

Public Works Department Director Larry Watt told the council that the improvements would take 180 days to complete.

The city paid $9.5 million in 2006 to buy the former Mossy Chevrolet dealership on Calle Magdalena as a public works center. The purchase included an additional $100,000 for equipment and temporary structures and $500,000 for immediate improvements.

Critics at the time said the city paid too much.

On Wednesday, Councilwoman Teresa Barth said officials knew more about the condition of the facility than they revealed during summer 2006. Barth was not on the council at the time.

"I hope this is a lesson-learned situation for both the council and the staff," she said, "to do these types of things with full disclosure, with due diligence and in a transparent manner; $1.5 million is not a turnkey, period. I apologize to the public."

The center's main building consists of offices and a former automobile showroom. The two-story structure needs an elevator, improved stairways and restrooms to comply with federal accessibility requirements for the disabled.

The improvements also would include building outdoor storage bunkers and enclosing a detached vehicle maintenance building.

During deliberations, some council members noted that the city had searched for years for a site for the public works center, and among 37 prospects, none was as viable as the former dealership, which abuts Interstate 5 and is in a central, commercial area.

One resident told the council to reconsider leasing space from Olivenhain Municipal Water District, which owns property in Carlsbad just north of Encinitas.

"I propose … we sell (the former dealership) to a developer for a strip mall or for housing that we're always talking about needing," said Lorri Greene of Cardiff.

Councilwoman Maggie Houlihan said the city considered the water district location and deemed it too expensive.

Other council members said buying the dealership was a smart one. To build a center from the ground up would have cost as much or more and neighbors would have objected, said Councilman Dan Dalager.

"To me, it was a godsend when Mossy came in," he said.

Mayor James Bond said that "buyer's enthusiasm" contributed to the city's swift purchase of the site.

"It fell in our laps at a time when we were going to spend at least that much or more," he said. "Now, I guess we're in somewhat of a situation of buyer's remorse. I never dreamed it was a turnkey operation. I knew we were going to spend money."

- Contact staff writer Adam Kaye at (760) 901-4074 or akaye@nctimes.com.