$200k Grant for Senior Citizen's Center Buyer

sounds high, though I am no expert
Mike Allen LLC can definitely afford to pay his own taxes/expenses rather than shifting the burden to current businesses and residents of Middietown

So do the tax exempt(on their own properties) downtowners pick up their fair share of others' tax breaks?

Check this out … in the Workbook the Resolution R2017-40 :

CONTRACT FOR SALE OF LAND FOR DEVELOPMENT

(b) Submission and Approval of Construction Plans.

Prior to the execution of the Agreement, the Developer has submitted to the City, the Developer’s proposal for the redevelopment of the Property by the construction of improvements thereon. These documents shall be maintained by the City and shall be a part of this Agreement, as shown on Exhibit “B”. All work performed by the Developer shall be in accordance with all state and local laws and regulations. The Developer shall apply for and obtain all necessary permits prior to performing work on the Property. All work with respect to the improvements to be constructed or provided by the Developer on the Property shall be in conformity with Exhibit “B”. The term “Improvements”, as used in the Agreement shall be deemed to have reference to the improvements as provided and specified in the Exhibit “B”.

When you look up Exhibit B ….. it says:

Exhibit B (Plans)

The preliminary site plan proposals and all accompanying documents, which constitute Exhibit “B” to this Agreement, are maintained on file in the office of Economic Development.

Mr Adkins, do these plans exist? If so why does their disclosure have to be by special request at the city building according to your Resolution No. R2017-40 and presented to Council for approval sight unseen!!!!Council and the public should have ready access to these plans before a vote on their adoption. WHY ALL THE SECRECY?

We need to examine the rest of the Staff Report that Mr Adkins has directed his staff to draft concerning a grant agreement with Mike Allen Real Estate Holdings, LLC. Quote in blue:

BACKGROUND and FINDINGS

Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati is purchasing parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055 from the City of Middletown for his project to renovate the old Middletown Senior Center building located at 140 N. Verity Parkway and create a BMW branded motorcycle dealership at that location. The dealership will prove new and used motorcycles, parts, service, and general merchandise to its customers. The project would include an investment of $1.273 million dollars in construction and upgrades to the facility, including separating all utilities from the City’s municipal building, and will create twelve (12) new full-time jobs and create $375,000 in new payroll. The project will start construction during the first quarter of 2018 and be completed by December 31, 2018. This grant will go towards the cost of separating the HVAC, water, electric, and gas utilities from the City Municipal Building. The Developer will be participating in the newly formed PACE program to assist with this transition and other energy efficiency upgrades. The total cost of separating the utilities from the City is approximately $200,000. 

Note that the “grant will go towards the cost of separating the HVAC, water, electric, and gas utilities from the City Municipal Building.” Upon a walk around inspection of the property you will find a new gas meter has already been installed; a large electric panel is there, ready to simply be hooked up; and the city has agreed to “cap off” the water line but they will probably just install a new water meter then and there. So, what of these changes could possibly cost $200,000?? because the Staff Report says “The total cost of separating the utilities from the City is approximately $200,000.” In reality, all of this “separating the utilities” is quite ordinary and would cost perhaps $1000. Mr Adkins and MARH need to explain exactly what the additional $199,000 is installing/separating and what exactly are the “other energy efficiency upgrades?? It certainly would be very strange if the HVAC is connected to the city building’s HVAC. And, historically, that building was air conditioned as part of the original design by HUD. Even a new energy efficient HVAC isn’t worth $199.000. And the ESID and PACE program requires limiting investments to high return in terms of gains in alternative or energy efficiency. Mr Adkins has chosen to keep crucial plans for the energy efficient programs (if there are any) on file in the office of Economic Development. Council and the public should have ready access to these plans before a vote on their adoption. Mr Adkins, do these plans exist? If so, why does their disclosure have to be by special request at the city building according to your Resolution No. R2017-40 which states:

The term “Improvements”, as used in the Agreement shall be deemed to have reference to the improvements as provided and specified in the Exhibit “B”.

When you look up Exhibit B ….. it says:

Exhibit B (Plans) Exhibit B (Plans)

The preliminary site plan proposals and all accompanying documents, which constitute Exhibit “B” to this Agreement, are maintained on file in the office of Economic Development.

So, it seems that neither the council nor the public has had access to the plans, assuming that they exist.

In addition, the Staff Report says “The Developer will be participating in the newly formed PACE program to assist with this transition and other energy efficiency upgrades.” Here’s the purpose of a PACE program:

Published on the internet by Lexology, a daily legal news feed service.

The PACE policy framework described assessment-based financing as a known public finance tool:

In a typical assessment district a local government issues bonds to fund projects with a public purpose such as streetlights, sewer systems or underground utility lines.

In other words, PACE was designed to extend market acceptance of known security mechanisms such as property tax-based assessments and tax lien status for unpaid assessments to facilitate alternative energy and energy efficiency projects.

But Mr Adkins can’t issue bonds, so he wants to give away $200,000 in city funds thru a grant that he will execute with the approval of city council. That isn’t really within the PACE policy framework of financial tools. And with the 12 year 100% tax abatement a tax-based assessment is not possible.

In the staff report no mention was made as to what “Developer will be participating in” would consist of or what “the other energy efficiency upgrades” would be and at what cost, IF THEY EVER OCCUR. And if they don’t occur isn’t that fraud, especially if the $200,000 grant money disappears and no energy efficient upgrades occur??? We have no assurance of any intention of Mike Allen Real Estate Holdings to participate in an energy efficiency program ... after all the posturing, smoke blowing and fund finagling!!