A near-vacant building at Peralta Boulevard and Dusterberry Way could become a facility for indoor recreation activities.

Fremont City Council unanimously voted Tuesday to authorize the city manager to enter into a service agreement with Berkeley-based Noll & Tam Architects and Planners to begin a feasibility study for renovating the building.

Built in 1968, the 32,000-square-foot building had significant additions made to it in 1980, staff reports state.

The city purchased two parcels of land the building sits on in 1999, with the intention of demolishing the structure and building a city park, according to Amy Rakley, a parks planning manager.

"The park hasn't been developed yet," she told the council Tuesday. "But during the last few years we've owned the property, we've seen an increased need for an indoor recreational facility."

Annabell Holland, Fremont Parks and Recreation Department director, said the city will have Noll & Tam examine how the building could be renovated into an indoor recreational facility.

"We're looking at turning it into a small gymnasium, pre-school space, a space for teen drop-in programs or maybe a small dance studio," Holland said. "We're at capacity for everything (the parks and recreation department) is doing, and everything I mentioned we're in dire need of and thensome."

During the city's 2007-2012 Capital Improvement Program, the council appropriated $200,000 in redevelopment funding to a feasibility study, including cost estimates, to renovate the site into a park.

Now, to begin a feasibility study for an indoor recreation facility, staff reports state the new agreement will not exceed $116,308. But staff recommended the council members increase the total by $23,000, bringing the contract total to $139,308.

The building is occupied by a used car dealership, which is renting space on a month-to-month basis.

Parts of the building are also being used as storage for items from the Niles Depot Building while it awaits relocation from Mission Boulevard to the Niles Town Plaza.

In 2007 the city undertook asbestos removal and mold mitigation to provide temporary occupancy by the Tri-City Volunteers. The group will be using just 6,000 square feet of the building and begin residency sometime this year.

Councilman Steve Cho was concerned even though the city would enter into a feasibility study, the project may never come to fruition.

"I'm concerned that we're spending $200,000 for something we can't afford," he said. "Then (the architects) will come up to us, resign, and it will be put on a shelf like other projects we have waiting.

"Just to put $200,000 into a study for preliminary feedback is too much," he added. "I think this can be done for a lot less if we want to look at something we can really do."

Holland reiterated the $200,000 is coming from redevelopment funds budgeted in the city's Capital Improvement Program. She also noted the entire $200,000 will not be used for the study.

Other council members were in favor of turning the building into a recreational facility.

"I was a pain in the butt through the CIP process for this project," Vice Mayor Bill Harrison said jokingly. "I think we need to look at if this site is the right place for a park, and I'd be interested to see what the consultants come back with."

Mayor Bob Wasserman said he didn't believe the land was appropriate for a city park, given the parks and recreation department is running out of room for indoor classes and programs.

"I would not want to see it developed as a park," he said. "I thought it was a mistake at the beginning. Right or wrong, I don't see it as a good place for a park. But I do see it as a good place for a gymnasium or dance studio."