Posted: 5:15 p.m. Tuesday, April 15, 2014

Bank building deal pulled from council’s agenda

By Ed Richter

Staff Writer

MIDDLETOWN — 

Aproposed sale of the former Bank One building was pulled from the agenda justhours before it was to be considered by Middletown City Council.

“Thisaction in no way is a reflection on the creative proposal we received fromChris Walden and his associates,” said City Manager Judy Gilleland in a emailto the Journal-News late Tuesday afternoon. “In fact, staff and City Councilwas excited to work with Chris on this project because of his world-classartistic talent and his vision of an art gallery and event center for thebuilding.”

Thelegislation to approve the sale of the downtown building was on tonight’scouncil agenda before it was pulled from consideration.

“Therebirth of downtown Middletown has created a demandfor space and we have received a few inquiries about the building in the lastseveral weeks,” Gilleland said. “As such, we have decided that it isappropriate to gauge the public interest in the building.

Gillelandalso said city staff would be meeting in the near future to discuss the nextstep, which will likely include a request for proposal. She anticipates theprocess to be accomplished in the short term.

Inan email sent by investor Mike Robinette to Mayor Lawrence Mulligan, Robinetteasked that tonight’s discussion and vote on the city-owned Bank One building betabled. Robinette, Middletown’s former economicdevelopment director, is part of an investment group, Geo CRE, which alreadyowns the Goetz Tower and the RoseFurniture building in the downtown.

Atthe last council meeting, members were told Toast of the Town Events, LLC,offered $135,000 for the Bank One building at 2 S. Main St., and artist andowner Chris Walden planned to convert the building into an art gallery andevent center. Doug Adkins, director of community revitalization, told councilToast of the Town Events’ offer was unsolicited and that it made “good sense”because it generated revenue, fit the downtown business plan and got the cityout of the landlord business.

Robinettehas said that he was interested in buying the building, but was told by cityofficials that it wasn’t for sale, since it was being leased to MiamiUniversity Middletown. But when Robinette learned that Toast of the Town Eventshad made an offer, he made two offers: one for $185,000, and a second for$202,500, or $67,500 more than the offer the city is considering.

Robinettewrote that the city should conduct a competitive process for the sale of thisproperty. He said the Bank One property is significantly more valuable than thenegotiated price of $135,000.

“Webelieve it is important that the city thoroughly evaluate all offers for thepurchase of this property, considering their track record of success andability to successfully complete and sustain the project,” he wrote.

Thebuilding is valued at $137,980, according to the Butler County Auditor’sOffice.

Inan email response to Robinette, Mulligan said council was interested in aselling the properties to “a broad, diverse group of investors and owners thatcan help move these properties forward.”

Mulligansaid there are examples where single ownership and control works well, but inthe city’s case, he believed “diversification is better.”

Thecity paid $275,000 in December 2010 to the Perry Thatcher estate for severaldowntown properties: CG&E Building, First National building, Masonic Temple and the Bank Onebuilding, Adkins said. He said the city received $202,000 from Higher EducationPartners for the purchase of the former CG&E Building that is being used byCincinnati State Middletown. If the Bank One building is sold, the city wouldmake $62,000 off its investment.

CityCouncil has donated the First National building to Cincinnati State Middletownand the Masonic Temple building to the ArtCentral Foundation.

StaffWriter Rick McCrabb contributed to this report. Contact this reporter at513-755-5067 or at Ed.Richter@coxinc.com.