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Sale of Old Senior Citizen Building

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    Posted: Nov 18 2017 at 2:54pm
MIDDLETOWN CITY COUNCIL AGENDA
TUESDAY, November 21, 2017

CITY COUNCIL BUSINESS MEETING – 5:30 pm – COUNCIL CHAMBERS – LOWER LEVEL

LEGISLATION

19. Ordinance No. O2017-55, an ordinance establishing a procedure for and authorizing a contract for the sale of City owned property located at 140 N. Verity Parkway for redevelopment to Mike Allen Real Estate Holdings, LLC, and declaring an emergency. (No action requested until December 5, 2017)

20. Resolution No. R2017-41, a resolution authorizing an agreement granting tax abatement to Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises dba BMW Motorcycles of Greater Cincinnati, for redevelopment of 140 N. Verity Parkway in the Downtown Middletown Community Reinvestment Area, and declaring an emergency. (No action requested until December 5, 2017)

CITY COUNCIL WORKBOOK - LEGISLATION ITEM #19:  PAGES 231 - 248
 
ORDINANCE NO. O2017-55 AN ORDINANCE ESTABLISHING A PROCEDURE FOR AND AUTHORIZING A CONTRACT FOR THE SALE OF CITY OWNED PROPERTY LOCATED AT 140 N. VERITY PARKWAY FOR REDEVELOPMENT TO MIKE ALLEN REAL ESTATE HOLDINGS, LLC, AND DECLARING AN EMERGENCY

S T A F F R E P O R T
For the Business Meeting of November 21, 2017

DATE: November 8, 2017
TO: Douglas Adkins, City Manager
FROM: Jennifer Ekey, Economic Development Director
Prepared by: Alexis Fitzsimmons, Assistant Economic Development Director

PURPOSE To authorize the City Manager to sell the parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055, which are owned by the City of Middletown to Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati (the Developer).

BACKGROUND and FINDINGS Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati would like to purchase parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, and 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. The City would agree to sell the property to the Developer, and the Developer agrees to purchase the Property for the purchase price of $300,000 The Developer will pay $50,000 in cash payable to the City simultaneously with delivery of the deed. The Developer is hereby granted a credit in the amount of $250,000 against the remainder of the Purchase Price for completing the project as described in the Development and Sale Agreement.

ALTERNATIVES Not selling the parcels.

FINANCIAL IMPACT The City will no longer be responsible for the costly care and keeping of the empty building and the building will be put to productive reuse. 

Development Agreement and Sale of 140 N Verity Parkway to Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati\

EMERGENCY/NON EMERGENCY 1st Reading on November 21st and 2nd Reading Emergency to follow on December 5th.

DEPARTMENTAL CLEARANCES Law Department

ATTACHMENTS Development and Sale Agreement (this document can't be copied for some reason)

CITY COUNCIL WORKBOOK - LEGISLATION ITEM #19:  PAGES 250 - 263

RESOLUTION NO. R2017-41 A RESOLUTION AUTHORIZING AN AGREEMENT GRANTING TAX ABATEMENT TO MIKE ALLEN REAL ESTATE HOLDINGS, LLC AND ALLEN GROUP ENTERPRISE, LLC dba BMW MOTORCYCLES OF GREATER CINCINNATI, FOR REDEVELOPMENT OF 140 N. VERITY PARKWAY IN THE DOWNTOWN MIDDLETOWN COMMUNITY REINVESTMENT AREA, AND DECLARING AN EMERGENCY.

WHEREAS, the City of Middletown has created a Community Reinvestment Area (CRA) in downtown Middletown in accordance with Chapter 3735 of the Ohio Revised Code, and by Resolution No. R2010-19 and as amended by Ordinance No. O2010-87; and

WHEREAS, Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati have proposed to redevelop the property located at 140 N. Verity Parkway, which is located in the CRA, and have applied for an abatement of real property tax in accordance with the applicable laws and ordinances; and

WHEREAS, the application has been received and investigated by the City, and City Council has determined that the remodeling and redevelopment of the existing property and construction of new structures within the property constitutes a commercial project with a public purpose for which tax abatements may be granted and has further determined that the project meets the goal of establishing commercial activity in the CRA; and 

WHEREAS, the Middletown City School District has waived any notice requirements under Ohio Revised Code Section 3735.671 and approved this tax exemption by the Comprehensive School Compensation Agreement between the Middletown City School District and the City of Middletown dated November 30, 2015; and 

WHEREAS, Butler Technology and Career Development School District was provided the required notice in accordance with Ohio Revised Code Section 5709.83 on or about November 17, 2017;

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Middletown, Butler/Warren Counties, Ohio that: Section 1 Based on the aforesaid review and investigation of the application, City Council hereby finds and determines that Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Downtown Middletown Community Revitalization Area as designated by the City Council, and to improve the economic climate of the City. City Council also finds and determines that the aforesaid application submitted by Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati describing the proposed project complies with the requirements of Ohio Revised Code Chapter 3735 and Middletown Resolution No. R2010-19 as amended by Ordinance No. O2010-87, and is satisfactory to the City, and which application is hereby approved. Section 2 City Council hereby authorizes the City Manager to enter into an agreement, pursuant to Ohio Revised Code Section 3735.671, with Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati. The agreement shall be in a form substantially similar to Attachment “1”, attached hereto. Section 3 City Council further authorizes the tax abatement in amount of one hundred percent (100%) for a period up to 12 years in duration as a commercial property designated under Resolution No. R2010-19, and as amended by Ordinance No. O2010- 87. Section 4 City Council hereby authorizes and directs the City Manager, Law Director and Economic Development Director to take such additional steps, provide such information and certifications to the State of Ohio and Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati as are necessary and appropriate to carry out and implement the terms and conditions of the aforesaid agreement. Section 5 It is found and determined that all formal actions of this City Council concerning and relating to the passage of this ordinance were adopted in an open meeting of this City Council, and that all deliberations of this City Council and any of its committees that resulted in such formal actions, were in meetings open to the public, in compliance with all legal requirements, including Revised Code Section 121.22. Section 6 This ordinance is declared to be an emergency measure necessary for the immediate preservation of the public health, safety and general welfare, to wit: to allow the CRA exemption to be in place when the project begins in the first quarter of 2018, and shall take effect and be in force from and after its adoption.

___________________________ Lawrence P. Mulligan, Jr., Mayor Adopted:______________
Attest: ________________________ Clerk of the City Council
H:/Law/leg/2017 Leg/r CRA – Mike Allen dba BMW Motorcycles.doc

S T A F F R E P O R T
For the Business Meeting of November 21, 2017
DATE: November 8, 2017 TO: Douglas Adkins, City Manager
FROM: Jennifer Ekey, Economic Development Director

Prepared by: Alexis Fitzsimmons, Assistant Economic Development Director

PURPOSE To authorize the City Manager to enter into a CRA Agreement with Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati for parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055. 

BACKGROUND and FINDINGS Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati has made an application for a 100% for 12 year CRA Agreement 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.\\ ALTERNATIVES Not approving the CRA agreement.

FINANCIAL IMPACT The City would be required to pay the Middletown City School District 25% of the District would have received had this tax abatement not been in place, this is required as a part of the Comprehensive School Compensation Agreement passed in December of 2015.

EMERGENCY/NON EMERGENCY 1 st Reading on November 21st and 2nd Reading Emergency to follow on December 5th .

ATTACHMENTS CRA Agreement and Application Community Reinvestment Area Agreement (CRA) Agreement – Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati


S T A F F R E P O R T
For the Business Meeting of November 21, 2017

DATE: November 8, 2017
TO: Douglas Adkins, City Manager
FROM: Jennifer Ekey, Economic Development Director
Prepared by: Alexis Fitzsimmons, Assistant Economic Development Director

PURPOSE To authorize the City Manager to enter into a CRA Agreement with Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati for parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055. 

BACKGROUND and FINDINGS Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati has made an application for a 100% for 12 year CRA Agreement 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. 

ALTERNATIVES Not approving the CRA agreement.

FINANCIAL IMPACT The City would be required to pay the Middletown City School District 25% of the District would have received had this tax abatement not been in place, this is required as a part of the Comprehensive School Compensation Agreement passed in December of 2015.

EMERGENCY/NON EMERGENCY 1 st Reading on November 21st and 2nd Reading Emergency to follow on December 5th . ATTACHMENTS CRA Agreement and Application Community Reinvestment Area Agreement (CRA) Agreement – Mike Allen Real Estate Holdings, LLC and Allen Group Enterprises d.b.a BMW Motorcycles of Greater Cincinnati

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Analytical Quote  Post ReplyReply Direct Link To This Post Posted: Nov 18 2017 at 7:50pm
QUESTIONS:  Since the date of original conveyance of the former Senior Citizens Center at 140 N. Verity Parkway to HEP-CSTCC, LLC, has HUD provided subsequent written consent to the city allowing same real estate to now be sold to a for-profit business enterprise?  Has this matter already been discussed by senior city staff with city council members?

MIDDLETOWN CITY COUNCIL AGENDA
TUESDAY I. , March 6, 2012 BUSINESS MEETING
5:30 p.m. – COUNCIL CHAMBERS – LOWER LEVEL 

LEGISLATION ITEM #3

ORDINANCE NO. O2012-09 AN ORDINANCE AUTHORIZING A DEVELOPMENT AGREEMENT WITH HIGHER EDUCATION PARTNERS, LLC.

WHEREAS, the City and Cincinnati State Technical and Community College (hereinafter “Cincinnati State”) have been discussing the development of a branch campus of Cincinnati State in downtown Middletown; and

WHEREAS, the City owns certain buildings downtown which Cincinnati State is interested in having redeveloped for their use; and WHEREAS, Cincinnati State has entered into a collaborative agreement with Higher Education Partners, LLC to own and redevelop the buildings for a branch campus in Middletown; and

WHEREAS, Higher Education Partners, LLC wishes to purchase certain real estate from the City for the purpose of redeveloping the property for use by Cincinnati State;

NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Middletown, Butler/Warren Counties, Ohio that:

Section 1 The City Manager is hereby authorized to enter into a Development Agreement with Higher Education Partners, LLC which is consistent with Attachment “1” hereto, and makes no additional commitments by the City. Any changes to Attachment 1 shall be subject to approval by the City Manager and the Law Director, prior to execution of the Development Agreement. The City Manager is further authorized to execute such other documents, including documents of conveyance that are necessary to complete the terms of the Development Agreement.

Section 2 City Council hereby determines that the property to be conveyed under the terms of the Agreement is not needed for any municipal purpose.

Section 3 It is hereby determined that the subject matter of this legislation is not of a general and permanent nature, does not provide for a public improvement, and does not assess a tax or payment.

Section 4 This ordinance shall take effect and be in force at the earliest date permitted by law.

_______________________________ Lawrence P. Mulligan, Jr., Mayor
1st reading: February 21, 2012 2nd reading: ___ March 6, 2012
Adopted: _________________________ Effective: ____________________
Attest: _________________________________ H:/Law/leg/2012 Leg/O HEP Development Agreement.doc

CITY COUNCIL WORKBOOK:  PAGES 88 - 103

Conveyance of the CG&E Building and Senior Citizens Center to by the city to HEP-CSTCC, LLC for the sum of $202,000.

CITY COUNCIL WORKBOOK:  HUD Community Development Block Grant Restrictions:  PAGES 90 - 92

The Pratt Law Practice LLC
Memo

To:          City Council
From:     Gregory K. Pratt
Date:       2/15/2012
Re:         Middletown/HEP-CSTCC, LLC

CITY COUNCIL WORKBOOK: PAGE 92 PARAGRAPH 3

"The $202,000 basically makes the taxpayer whole for what they have invested in the CG&E Building.  The senior citizen center which has certain community development block grant restrictions is being donated to the project subject to the same community development block grant restrictions.  The Community College qualifies as an approved community development block grant use.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Nov 18 2017 at 9:53pm
"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."

I think it is great that the potential sale of the long vacant Seniors Center may be in the making and may end up in the hands of a private business owner as ALL city owned property should be. However...........

I find it fascinating to read that a business from Cincinnati will undertake renovations and actually set up a BMW motorcycle dealership in downtown Middletown. Just don't see any clientele foot traffic for this in this town nor area. This is, for the most part, a Harley Davidson town if motorcycles are to be ridden. Of course, when considering the median income levels of this city, I doubt there are many that have the discretionary spending to buy a Harley or a BMW. If the intention is to attract business from Dayton or Cincinnati, where the clientele is more likely to have that disposable income, I would also doubt that many from either city would drive 30-40 + miles, then seven miles from I-75 to visit this dealership because it is just too darn inconvenient to get to. Surely a location by I-75 would be substantially more appealing (and costly) to this business than one in a much more awkward, less traveled location proposed here.

Just don't understand the thinking here by this business. If this happens, I don't see any longevity to this at all.

Furthermore, does this fit in with the downtown Middletown theme of fru fru, arts and culture? Seems a bit out of place as to what they are trying to accomplish doesn't it? Does this meet with the approval of the powers that be in the downtown area? Will this be another "O'Reilly Auto Parts" debacle with the Planning Commission sticking their noses in the private sector's business plans? Kinda like placing a Ferrari dealership in a low income area isn't it?
I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote buddhalite Quote  Post ReplyReply Direct Link To This Post Posted: Nov 18 2017 at 10:56pm
I agree with you Vet,

Something stinks here.  My first thought was "BMW?  Middletown?"

Maybe the rich people with the mansions on Main can afford it - but a 12 year tax abatement on a business that won't survive year one?  And the city is on the hook to the school board for a chunk?

Somethings not right here...

Bob
"Success usually comes to those who are too busy to be looking for it."—Henry David Thoreau
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Post Options Post Options   Thanks (1) Thanks(1)   Quote FmrMide81 Quote  Post ReplyReply Direct Link To This Post Posted: Nov 20 2017 at 3:40pm
My initial reaction was maybe they do most of their business online so they were just looking for a cheap place to setup a bunch of computers and maybe a parts department-but after reading the article and how they plan on basically a full dealership, they, yeah, somebody's making good on a bad deal. And it ain't too hard to figure out which end Dougie and Friends are on
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Analytical Quote  Post ReplyReply Direct Link To This Post Posted: Nov 21 2017 at 10:55am
Mr. Adkins -

Vivian Moon recently learned from a city council member that the HUD deed restriction on the former Senior Citizen's Center "apparently" is no longer applicable to the proposed sale to a for-profit entity.  She also learned that this matter was presented in question form to you during an Executive Committee discussion.

Reportedly, you informed those present that this stipulation noted in the 3/6/2012 city council agenda, meeting minutes and workbook, "apparently" has been waived.  It was also noted that you did not offer any details.

Ms. Moon left a voice mail message with the Law Department today requesting the date of and form of said waiver on the former Senior Citizen's Center.  Perhaps you might provide some clarification for MUSA Blog members in light of tonight's city council meeting?
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Post Options Post Options   Thanks (1) Thanks(1)   Quote whistlersmom Quote  Post ReplyReply Direct Link To This Post Posted: Nov 21 2017 at 4:10pm

Please read in Tuesday’s Journal-News a Richterized front page article below.

But first, getting any building off of the city’s back would be good IF IT IS DONE BY THE RULES up front and honest. This proposed conveyance is full of holes, misinformation and underhanded intentions per Mr Adkins.

Former senior center could get new life

Firm wants to convert Middletown building into motorcycle dealership.

By Ed Richter
Staff Writer

Middletown City Council will consider selling the former Middletown Senior Center on North Verity Parkway to a company that wants to locate a BMW motorcycle dealership there. GREG LYNCH / STAFF



MIDDLETOWN — A new use is being eyed for Middletown’s former senior citizens center on North Verity Parkway.

The building, which is located next to the Middletown City Building and is a part of Donham Plaza, is being proposed to become a BMW motorcycle dealership.

Mike Allen Real Estate Holdings, LLC, doing business as BMW Motorcycles of Greater Cincinnati, wants to invest more than $1.27 million in construction and upgrades to renovate the former senior citizens center at 140 N. Verity Parkway, according to a staff report prepared by Alexis Fitzsimmons, assistant economic development director.

The building has been empty for the past decade since a new senior center was built on Central Avenue in 2007.

The building was empty even though it had been conveyed to HEP-CSTCC, Cincinnati State Community College, an approved nonprofit (as required by HUD under community block grant restrictions) but was later returned to the city, at a certain cost. HUD properties owned by the city may be conveyed only for nonprofit use. The exchange of ownership does not lift the block grant restriction of nonprofit ownership of this property. HUD authorities are apparently unaware of this proposed conveyance to a profit entity which ignores the community block grant restriction that it can only be conveyed to nonprofit.

If the city is going to continue and complete this transaction then they will also be in violation of the STATE LAW which requires that any property worth more than $5000 must be put up for bid. I believe there has been no such auction. There may be many others who might pay more than $50,000 for this “prime” real estate next door to the city building and who will not require that $250,000 of the purchase price be forgiven plus receive a 12-year 100% tax abatement.

The company wants to create the BMW dealership that would sell new and used motorcycles and parts, general merchandise and offer service for customers as well as employ at least 12 full-time employees and create $375,000 in new payroll.

Fitzsimmons said the project would include the separation of all utilities from the city’s municipal building. Both buildings were built in the mid-1970s.

What? After nearly10 years the utilities have not been separated, which means we, the tax payers, have paid HEP’s utility bills all this time!!! If Cincinnati States bakery (part of the culinary school) had gone in there (or for any other purpose) as they had proposed … would we still be paying their utilities?

If Middletown City Council approves the sale of the building and a 12-year, 100-percent Community Reinvestment Area tax abatement, the project would start construction during the first quarter of 2018 and be completed by Dec. 31, 2018.

The agreement would also get another empty building and property and their maintenance costs off of the city’s books and placed back into productive use.

Council will hear a first reading of both proposals at its meeting today, with final approval slated for its Dec. 5 meeting.

In the agreement, the city would agree to sell the property to the developer, and the developer agrees to purchase the property for the purchase price of $300,000. The developer will pay $50,000 in cash payable to the city simultaneously with delivery of the deed. The developer would be granted a credit in the amount of $250,000 against the remainder of the purchase prices for completing the project as described in the development and sale agreement.

Also as part of the agreement, the city would be required to pay the Middletown City School District 25 percent of what the district would have received had this tax abatement not been in place, this is required as a part of the Comprehensive School Compensation Agreement passed in December 2015.

This all sounds good, but there have never been property taxes on this nonprofit property. The Auditor has never appraised this property for tax purposes! So the Middletown City Schools get 25% of $0, or if the Auditor places the value at $300,000, Mike Allen can claim the actual purchase price was $50,000. Anyway, why should the Auditor place a value on this for tax purposes when no taxes will be paid over the 12 year 100% abatement. Oh, what a web we weave.

No one has taken note that there are 5 parcels listed that will be conveyed. Only one of those is the Senior Citizen building. The other 4 parcels are green space between the Senior Citizens building and the Post Office parking lot. What remains of Columbia Ave. runs between The Senior Citzens building and the green space and up to 1 Donham Plaza pavers. What city owned property will they sell next … the city parking lot?

Contact this reporter at 513-755-5067 or email Ed.Richter@coxinc.com.

"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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Post Options Post Options   Thanks (1) Thanks(1)   Quote whistlersmom Quote  Post ReplyReply Direct Link To This Post Posted: Nov 25 2017 at 1:02pm

More thoughts on the re-purposing of the former Senior Citizens building.

When HUD built this for the city they included what must have been a state of the art commercial kitchen. Shouldn’t this building have been put up for auction merely to take bids by interested parties who could take advantage of the buildings assets. Might that be worth more to a restaurant? All the expensive equipment installed to code has to be attractive.


Why, after the city left the building empty for a decade, have they suddenly decided to sell it? And why virtually give it away? Has the city neglected upkeep on the building?  Why and how did Mike Allen Real Estate Holdings, LLC suddenly become interested? Because he was guaranteed to have no competition for the purchase? Who else has ever paid $300,000 and then got a $250,000 rebate? Although, admittedly, city hall is notorious for giving property away to cronies who have promised, but failed to invest their own money. 


If it looks like a scam and smells like a scam, it probably is a scam!!!!!


There may be more thoughts to come … 

"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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Post Options Post Options   Thanks (1) Thanks(1)   Quote whistlersmom Quote  Post ReplyReply Direct Link To This Post Posted: Nov 26 2017 at 10:45pm

MORE THOUGHTS

The workbook from council meeting on 11/21/2017, states in the proposed Ordinance No. O2017-55, Section 3, that “The City Council hereby determines that the property to be sold by the City is not presently needed for any municipal purposes.”


According to Ohio Revised Code, city properties must be so declared before they can be sold.

Chapter 721: SALE OR LEASE OF PROPERTY

721.01 Lease or sale of municipal property.

Municipal corporations have special power to sell or lease real estate or to sell personal property belonging to the municipal corporation, when such real estate or personal property is not needed for any municipal purpose. Such power shall be exercised in the manner provided by this chapter.

Amended by 130th General Assembly File No. 25, HB 59, §101.01, eff. 9/29/2013.

Effective Date: 10-01-1953 .

How can the city council possibly determine that this property “is not presently needed” while renting office space in the Goetz Tower?? There is obviously available space for offices in this adjacent city owned building at no additional cost to the tax payer. 

 Besides, we all know why the city rented office space in Goetz Tower … they needed to show cash flow in order to get a loan. Aren’t they still looking for that loan, unsuccessfully!! Has anyone seen any city employees using office space in Goetz Tower? Is Goetz Tower in any condition to rent out space?? Guess there’s been MORE taxpayers money handed over to cronies…

A recent check of the property for sale at 140 N. Verity shows a brand new gas meter has been installed with 00 usage. But according to the ordinance (see quote below), MARH, LLC was supposed to be responsible for separating and installing all utilities (se quote below). So the city has partially done this before the deal is done. More favors and giveaways!!!


SECTION 3. DEVELOPMENT OF THE PROPERTY


(a) Project Details. The Redevelopment of the Property will include the renovation of the Property for reuse as a new and used motorcycle dealership that offers parts and service to customers D.B.A BMW Motorcycle of Greater Cincinnati. In addition to the $50,000 acquisition cost, the renovation will be BMW brand approved upgrades which includes the projected amounts of: $293,000 in construction, $50,000 in machinery and equipment, $100,000 in furniture and fixtures, and $780,000 in inventory. Developer also agrees to separate any the HVAC, water, electric, and natural gas connections from the City Municipal Building that currently exist and install and obtain the proper equipment and meters required to safely operate the proposed project on the Property, except that the City shall bear the cost and responsibility for capping off the existing water supply lines to the Property and removal of any underground plumbing.


Also, are they really going to have upstairs apartments as the “Contract for sale of land for development states (see quote below)?

WHEREAS, after conveyance of the Property from the City to the Developer, the Developer intends to renovate the property to develop space for retail operations and upstairs apartments upon the Property (hereinafter the “Project”), which will increase commercial activity in the downtown area and create employment opportunities in the City; and”

And there’s more to come …



"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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Post Options Post Options   Thanks (1) Thanks(1)   Quote whistlersmom Quote  Post ReplyReply Direct Link To This Post Posted: Nov 28 2017 at 5:38pm

MORE THOUGHTS and the most important ones are the following.

First, we have no assurance except Mr Adkins’ unsubstantiated word, that the Senior Citizen’s building is no longer under HUD’s rule of remaining a non-profit property. And none of our city council are brave enough to request proof … that bunch of sheep.

Second, it’s all clear as mud with so much citing of so much legislative jargon and mysterious creation of an ESID, Energy Special Improvement District, using property that is part of the city building land … all this is addressed below. Has any council member bothered to read the proposed legislation or sale contract?? Yeah, it’s difficult to follow Mr Adkins’ (perhaps purposely) disjointed presentation. Sadly it makes for a lengthy disjointed explanation … but please bear with me.



Read the ORC with which Mr Adkins must comply.

721.29 Sale of real estate without bidding.

The legislative authority of a city may sell to a board of county commissioners real estate belonging to the city that is no longer needed for city purposes upon such lawful terms as are agreed upon between the city and the board of county commissioners, without competitive bidding as required by section 721.03 of the Revised Code. No such sale shall be made unless the contract for the sale is authorized by ordinance, approved by a two-thirds vote of the members of the legislative authority of the city, and by the board or officer having supervision or management of the real estate.

Added by 130th General Assembly File No. 25, HB 59, §101.01, eff. 9/29/2013.

(Now, minus the legalese language, the Ohio Ordinance says … the sale, without bidding, of real estate belonging to the city, may be sold only to a board of county commissioners … and must be authorized and also approved by a two-thirds vote on a city ordinance. And also must be advertised according to ORC 721.03 below.

721.03 Lease or sale of real estate - advertisement for bids.

No contract, except as provided in section 721.28 of the Revised Code, for the sale or lease of real estate belonging to a municipal corporation shall be made unless authorized by an ordinance, approved by a two-thirds vote of the members of the legislative authority of such municipal corporation, and by the board or officer having supervision or management of such real estate. When the contract is so authorized, it shall be made in writing by such board or officer, and, except as provided in section 721.27 or 721.29 of the Revised Code, only with the highest bidder, after advertisement once a week for five consecutive weeks in a newspaper of general circulation within the municipal corporation or as provided in section 7.16 of the Revised Code. Such board or officer may reject any bids and readvertise until all such real estate is sold or leased.

Amended by 130th General Assembly File No. 25, HB 59, §101.01, eff. 9/29/2013.

Amended by 129th General AssemblyFile No.28, HB 153, §101.01, eff. 9/29/2011.

Effective Date: 09-11-1961.


Then there’s the mystery of the sudden need to create an ESID, Energy Special Improvement District! That District” being comprised of the old Senior Citizen’s property along with four other lots, being parcel numbers Q6511014000060 Q6511014000059 Q6511014000057 Q6511014000055 (parcels which are actually listed with the city building property and are a green space located between the Senior citizen’s building and the Post Office parking lot). If you search by Parcel No. on the Butler Co. Auditor’s site you will get “no data found” but search under owner City of Middletown … and there they are, right in line with the city building. Are they really going to sell those small parcels??? WHY?

See on page 30 of the workbook of 11/21/17 that a Petition for Creation of Energy Special Improvement District. Quote from the workbook:

The City of Middletown, Ohio, an Ohio municipal corporation (“the Petitioner”) is the owner of 100% of the property described on Exhibit A, attached to and incorporated into this Petition (the “Properties”). The undersigned represents that he or she is the duly authorized signatory or officer of the Petitioner.

[Take note … the City”, as stated above, is “the Petitioner” and the City is petitioning itself as stated below. What kind of garbage is this that Mr Adkins is trying to sell to our uninformed (or misinformed) council??? Larry Mulligan seems to be the only one who “understands” why this convoluted mess is being promoted by Mr Adkins.]

The Petitioner respectfully petitions the City of Middletown, Ohio (the “City”) for the creation of an energy special improvement district initially to be named the Middletown Energy Special Improvement District, but at any time and from time to time to be named the unique proper name only of each participating political subdivision, as defined in Ohio Revised Code Section 1710.01(E), of the special improvement district (the District) pursuant to Ohio Revised Code Chapter 1710, as amended from time to time (the Act). The District is hereby authorized to use any trade name as the board (as defined below) may duly determine from time to time. End Quote.


In order for a “district” to be created there had to be more than one lot or property, thus the addition of the 4 “city building lots” to the deal. And each lot must have its own improvement plan!! Haven’t seen any mention of any such plans. If this mess is voted in and no improvements are set up on EACH little lot … then all this is a FRAUD. Now, remember that in order to sell this city owned property, there has to be approval by a board or managing officer of said property, thus the need for a board or manager where none had existed.

Please read the quotes below from the city ordinance concerning the ESID:

WHEREAS, the City of Middletown, Ohio (the “Owner”) has identified certain real 

property owned by the Owner located at 140 N. Verity Parkway, Middletown, Ohio 

45042 (the “Project Site”), as an appropriate property for a special energy 

improvement project pursuant to Ohio Revised Code Chapter 1710;


WHEREAS, the City Council, as required by Ohio Revised Code Section 1710.02, must approve or disapprove of the Creation Petition within 60 days of the submission of the Petition;

WHEREAS, the City Council has determined to approve the Creation Petition and cause the Middletown Energy Special Improvement District (the “District”) to be created; and

WHEREAS, approving the Creation Petition serves the public interest and promotes the public good;

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Middletown, Butler/Warren Counties, Ohio that:

Section 1

The Council approves the Creation Petition in substantially the form now on file with the Clerk of Council.


Section 2

The Council, in accordance with Ohio Revised Code Section 1710.04, appoints 

Lawrence P. Mulligan, Jr. to serve on the Board of Directors of the Middletown 

Energy Special Improvement District, Inc. as the representative of the legislative 

authority of City of Middletown on the board of directors.


FYI the ORC Chapter 1710 requires that the sale of city property must be approved by the board or officer managing such real estate. And they have appointed Lawrence P. Mulligan, Jr. (see Section 2 above) to serve alone on the board which was supposed to have 4 or 5 members of a virtually NON-EXISTENT ESID, UNTIL it was created simultaneously with this sale. To what purpose? Maybe there is dual purpose! See more below about financing available thru the ESID. And there is a clause at the very bottom of ORC1710.02 which gives THE BOARD OF DIRECTORS OF A SPECIAL IMPROVEMENT DISTRICT (ESID) TO SELL ANY SUCH DISTRICT WITHOUT ADVERTISING OR RECEIPT OF BIDS. Could this be a last ditch back-up plan to circumvent HUD’s claim and/or rules for advertising for bids on this property??? Here’s that excerpt from ORC1710.02:

The board of directors of a special improvement district may, acting as agent and on behalf of a participating political subdivision, sell, transfer, lease, or convey any special energy improvement project owned by the participating political subdivision upon a determination by the legislative authority thereof that the project is not required to be owned exclusively by the participating political subdivision for its purposes, for uses determined by the legislative authority thereof as those that will promote the welfare of the people of such participating political subdivision; to improve the quality of life and the general and economic well-being of the people of the participating political subdivision; better ensure the public health, safety, and welfare; protect water and other natural resources; provide for the conservation and preservation of natural and open areas and farmlands, including by making urban areas more desirable or suitable for development and revitalization; control, prevent, minimize, clean up, or mediate certain contamination of or pollution from lands in the state and water contamination or pollution; or provide for safe and natural areas and resources. The legislative authority of each participating political subdivision shall specify the consideration for such sale, transfer, lease, or conveyance and any other terms thereof. Any determinations made by a legislative authority of a participating political subdivision under this division shall be conclusive.

Any sale, transfer, lease, or conveyance of a special energy improvement project by a participating political subdivision or the board of directors of the special improvement district may be made without advertising, receipt of bids, or other competitive bidding procedures applicable to the participating political subdivision or the special improvement district under Chapter 153. or 735. or section 1710.11 of the Revised Code or other representative provisions of the Revised Code.

Mr Adkins is covering his a.. by every underhanded, clandestine legislative manipulation he can think of. Could this be the reason for the sudden establishment of the ESID! If only he had spent his time in an HONEST endeavor to improve Middletown’s financial bind. This muddy mess definitely isn’t improving our bottom line by giving more assets away.


Section 3

The Council approves and consents to (i) any addition of real property to the territory of the District within the boundaries of any municipal corporation or any township which is contiguous to the municipal corporations or townships in which a portion of the territory of the District is located; (ii) the addition of the municipal corporation or township in which such real property is located as a “participating political subdivision,” as defined in Ohio Revised Code Section 1710.01(E), of the District; and (iii) any amendment to the Articles of Incorporation necessary to recognize or effect such addition.


Section 4

It is found and determined that all formal actions of this Council concerning and relating to the adoption of this Resolution were adopted in an open meeting of this City Council, 

and that all deliberations of this Council that resulted in such formal action were in 

meetings open to the public in compliance with the law. (Do you recall any open 

discussion at a council meeting?)


Section 5

This resolution is declared to be an emergency measure necessary for the immediate 

preservation of the public health, safety, and general welfare, to wit: to allow the 

District to take advantage of financing available to it for a limited time and shall 

take effect and be in force from and after its adoption.

ABOUT THE FINANCING CLAUSE: Take note that there is financing available, apparently through the ESID. It would be interesting to know whether there will be grants available and in what $ amounts for the purpose of energy improvements. (Why else should there be an ESID, Middletown Energy Special Improvement District (the “District”) created? What, if any, requirements/restrictions would there be for installing such improvements (maybe a couple of photo-voltaic cells at a minimal cost)??? If there is such an advantage, and depending on the $’s involved, then MARH, LLC might be purchasing the old Senior Citizens Building for $0 when all is said and done. Rather HUGE incentives!! Why wasn’t this kind of incentive advertised and offered openly to any and all prospective investors?? Yes, the entire previous scenario does sound outlandish!!! But shouldn’t the city at least try to garner SOME compensation for the sale of an asset valued at $300,000!!! City council is responsible for the financial health of the city not the welfare of speculators looking for a sucker.

It appears that MARH, LLC is financially able to do what they say they will, but when considering all the incentives they’ve been offered, there might have been a lot of equally able prospective investors who would leap on this kind of giveaway deal.

Hey . . . Council . . . you should be researching all of this and asking these questions. This is a prime example of why Middletown is BANKRUPT! And resident apathy can’t be blamed for council’s lackadaisical, uninformed and sheep like misled lack of leadership, thanks to Mr Adkins overpowering grip and control on council’s lazy brains. 

Mr Adkins has told them time and time again, behind the scenes, how to vote and never mind researching for yourselves. Just do as he says!!! Do we have a modern day Rasputin on our hands? The internet describes Rasputin (an acquired name, Russian, literally "debauchee") as a mystic and faith healer (the mad monk) who held sway over the court of Nicholas II of Russia. His nickname derives from his doctrine of "rebirth through sin," that true holy communion must be preceded by immersion in sin. Thus the downfall of the Russian Empire.

"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Analytical Quote  Post ReplyReply Direct Link To This Post Posted: Dec 03 2017 at 8:03pm
Whister'sMom -

Thanks again for your research and enlightening comments!  You're a beacon of truth.

Originally posted by whistlersmom whistlersmom wrote:


Section 3. DEVELOPMENT OF PROPERTY of the proposed city ordinance, O2017-55 states: In addition to the $50,000 acquisition cost, the renovation will be BMW brand approved upgrades which includes the projected amounts of: $293,000 in construction, $50,000 in machinery and equipment, $100,000 in furniture and fixtures (really, for furniture and fixtures??), and $780,000 in inventory (they think they’re going to sell that much inventory in Middletown!?!?!? with a staff of 12 who will probably be busy twiddling their thumbs). AND NONE OF THIS IS AN UPGRADE TO THE FACILITY WHICH MARH, LLC CAN’TTAKE AWAY WITH THEM IF OR WHEN THEY LEAVE. 


This looks like the usual set up for failure because they will quickly be operating at a loss at a Middletown location and Middletown will be the biggest loser as usual. What if MARH, LLC walks away (taking with them grant money) like so many others who promised hundreds of thousands in investment $ then reneged?They didn’t lose anything, after all they bought those properties for near nothing!!! What if MARH, LLC demands that Middletown buy back (at a profitsay $100,000 eachthose 4 “city building lots” that they couldn’t (or wouldn’t) use under the ESID/PACE grant


WHY DOES Mr Adkins CONTINUE TO PUT Middletown IN THIS MONEY LOSING SITUATION ?


It's increasingly apparent from Mr. Adkins ever laudatory comments about subsidized
"downtown" deals, and this one in particular, that it's what he conveniently doesn't
say that really matters most!  And, when it comes to city council, they ingest just about
all that he tells them without question.

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Post Options Post Options   Thanks (1) Thanks(1)   Quote whistlersmom Quote  Post ReplyReply Direct Link To This Post Posted: Dec 03 2017 at 10:16pm

SUMMARY OF OBJECTIONS TO SALES CONTRACT


It has been determined that after a period of 40 years HUD will allow, without any restriction, the sale of a property constructed with HUD funds. So, since HUD built the Senior Citizen’s Building in the seventies, that 40 year mark has approached or MAYBE passed. HUD will allow it.


This might partially explain the timing of this proposed sale. But it doesn’t explain how or why the availability of the property became known ONLY to Mike Allen Real Estate, LLC. There are realtors and other possible investors in our community who were VERY surprised that this proposed sale suddenly appeared before council with NO OPPORTUNITY FOR COMPETITIVE BIDDING. Does the violation of the Sunshine Law come to mind???


The sale of any city property valued above $5,000, without receiving competitive bids is PROHIBITED by Ohio Revised Code. This may be the most contentious and important point about this whole matter.


Don’t forget, this sale is practically a giveaway at $50,000 and the city may be funding a $200,000 cash grant!!! … that makes this a negative sale. So, Middletown PAYS THE BUYER $150,000 TO TAKE IT!!!!.

All the above might be seen as ENTICEMENT or motivation for the buyer, MARH, LLC to purchase an older, unsuitable building in an area with no potential customers. Then the buyer “SAYS” he will spend over $1million to transform it into a state of the art BMW Motorcycle salesroom and repair shop. Several other “investors” who were awarded “steal deals” have made similar promises and many of them abandoned their projects. Those abandoned properties are all over the downtown area.


Our “unsuspecting” council members have their blinders on, with one exception, whose question was stonewalled. They either haven’t bothered to read or understand the sale contract or have just taken Mr Adkins’ word (as usual) that everything is fine and they don’t need to know the details … those details that are going to cost us a lot of money … $150,000.


Who knows what else lurks in the verbiage of Mr Adkins’ lengthy legislation that he has instructed council to blindly approve. Everything is so suspiciously hurried up and muddied up. WHY? Why can’t the city’s business be conducted openly and above board according to the Sunshine Law?


There are so many other contentious points built into the Contract for sale which are suspiciously confusing and (it seems) purposely difficult and time consuming to verify (and time is perhaps purposely short … declaring an emergency). For instance, why has an Energy Special Improvement District, ESID and PACE program been attached to this sale? Justification for the city funded $200,000 grant?!?!? And no explanation has been given for the inclusion of 4 “city building lots” in the sale contract.


This entire “deal” looks like it was designed and manufactured specifically and exclusively for MARH, LLC.  ALL UNETHICAL & POSSIBLY ILLEGAL




"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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