Posted: 4:54 p.m. Monday, May 5, 2014

Former Cinergy building sold for $5.8 million

Deal won’t impactoperations at Cincinnati State Middletown

By Rick McCrabb

Staff Writer

    MIDDLETOWN — The sale of the former Cinergy building, whereCincinnati State Middletown is located, will allow High Education Partners tocontinue renovations and start remodeling the former Middletown Area SeniorCitizens Center, an official told the Journal-News today.

    Michael Perik, chief executive officer ofHigher Education Partners (HEP), said the building at 1 N. Main St. wasrecently sold for $5.8 million, or $5.6 million more than it was purchased formore than two years ago. But he was quick to point out that HEP has spent $5.5million renovating and purchasing equipment for Cincinnati State Middletown.

    He said HEP also paid off a $1 million loanfrom HUD.

    Now with the money from the purchaser,Store Master Funding, which is based in Scottsdale, Ariz., HEP can continueexpanding in the Middletown market, Perik said.He said HEP will begin renovating the former senior citizens building,hopefully in time for next fall’s classes.

    Michael Chikeleze, director of CincinnatiState Middletown, said the sale of the building will not impact the dailyoperations of the college.

    HEP purchased the building from the cityfor $202,000 in April 2012.

InOctober 2011, the city purchased the former CG&E, Bank One, First National,and Masonic Temple buildings for$300,000.

    On April 5, 2012, Cincinnati State and Higher EducationPartners finalized a contract to bring the county’s first community college todowntown Middletown. The deal had HigherEducation Partners funding the construction and conversion of two buildingsinto a community college campus for the Clifton-based Cincinnati State. The 20-year dealbetween the two had four five-year extension options.

    A week later, Middletown City Manager JudyGilleland signed off on selling the former CG&E building and donating the formersenior center to Higher Education Partners.

Cincinnati State Middletown timeline

September 2009: Local businessman andformer city councilman Perry Thatcher meets with Cincinnati State’s residentchef to cook at the Manchester Inn. A deal to bring a Cincinnati State branch campus begins inearnest.

Oct. 26, 2010: Agreement announced at Cincinnati State board of trusteesmeeting that the city of Middletown and the technical andcommunity college will negotiate for the city to buy and then sell downtownbuildings for a potential branch campus. College officials expressed interestin the CG&E building and the Manchester Inn.

October 2011: The city purchased theformer CG&E, Bank One, First National, Masonic Temple buildings for $300,000.

Dec. 21, 2010: City Manager Judy Gilleland announced that Cincinnati State officials are onlyconsider using of the city-purchased buildings: the former CG&E building.

June 28, 2011: An independent market study revealed that there was anadequate base of students to proceed with a downtown Middletown campus.

Aug. 14, 2011: The goal to open in the fall of 2012 is announced.

April 5, 2012: Cincinnati State and Higher EducationPartners finalized its contract to bring the county’s first community collegedowntown Middletown. The deal has HigherEducation Partners funding the construction and conversion of two buildingsinto a community college campus for the Clifton-based Cincinnati State. The 20-year dealbetween the two has four five-year extension options.

April 13, 2012: City Manager Judy Gilleland signs off on selling the formerCG&E building for $202,000 and donating the former senior center to HigherEducation Partners. Both buildings will play a role in the future downtown Middletown campus of Cincinnati State, though the CG&Ebuilding will be the main school’s campus in the city.

April 17, 2012: Cincinnati State hires its first Middletown campus employee,Monetta Pennington, to be the director of marketing and community outreach.

May 4, 2012: Interior demolition and construction begins at theCincinnati State Middletown campus at 1 N. Main St.

Aug. 9, 2012: Cincinnati State names MichaelChikeleze, an associate dean in the college’s business technology division, theinaugural director of Cincinnati State Middeltown.
April 23, 2014: HEP-CS sells CG&Ebuilding to Store Master Funding for 5.8 million dollars.

Journal News
Posted: 12:00 a.m. Sunday, April 6, 2014

College expansion seen as job, economic driver

By Ed Richter

Staff Writer
    MIDDLETOWN — The arrival of Cincinnati State’s branch campus in Middletown has helped to cementthe redevelopment of the city’s downtown core and is helping to revive it’seconomy.

MichaelChikeleze, who has been the campus’s only director since it opened nearly twoyears ago, said the future is very bright in Middletown as Cincinnati Statecontinues to build partnerships with the local business, industrial and heathcare communities, the city and county and area school districts.

    “We’re excited to be in Butler County,” he said. “To meet thedemands of the area, we’re adding more academic courses and programs, doworkforce development and are looking to keep the cooperative educationcomponent focused.”

    He said the Middletown campus, which is Cincinnati State’s second-largest venueof its four campuses, is also working to align its academic program to wherethe jobs are.

“Ourgoal is to attract and keep students in the region as part of an educatedworkforce with the job skills that are in demand,” Chikeleze said.

    He said students can take the path toward atechnical, two-year associate’s degree to get the skills needed to enter theworkforce or take academic courses to transfer to a college or university witha four-year program. In addition, he said the programs at Cincinnati State are complimentary tothose offered at Miami University Middletown.

    Cincinnati State Middletown offers 13associate degree programs, five certificate programs and online courses, hesaid.

    Chikeleze said about 200 students wereoriginally projected to enroll at the Middletown campus in fall 2012.

Innearly two years, the number has jumped to more than 600 students whose averageis age is 30.

    “We’ve far exceeded our original enrollmentprojections,” he said. “Sustaining growth will be the challenge as well asmanaging change and keeping up with growth.”

    Thecollege, which is Butler County’s first community college, currently operates out of theformer Cincinnati Gas & Electric Co. building at 1 N. Main St. that is still owned by the city. Chikeleze said there are25 full-time employees at the Middletown branch with another 40to 50 adjunct faculty who teach a variety of courses.

    “We’re a full-service campus with classes,tutoring, financial aid, IT (information technology), police and academicadvising,” Chikeleze said.

    He said the college is working on astrategic plan and foresees an enrollment of 2,000 to 3,000 in five years. Inaddition, Boston-based Higher Education Partners provided the private fundingto assist Cincinnati State to establish the Middletown campus, with city andcollege officials, are already looking at acquiring additional properties tohandle the future campus growth.

    “We’re in growth mode,” he said. “Ourfuture is good. Over time, we’ll be better known in the Middletown area. The importantthing is continue what we’re doing and become a known option in the next 10 to15 years.”

    Chikeleze said the Middletown branch is working onbuilding awareness and developing partnerships with various educational andnonprofit organizations.

    “We’re helping students and people changetheir lives,” he said. “We already have a lot of successful stories inproviding an opportunity for someone to go to college.”

    City Manager Judy Gilleland said Middletown made a major investmentin developing the Cincinnati State branch campus.

    “Over the next year, the city will haverecouped all of its investment or more,” she said.

    Gilleland estimated that amount to be anadditional $100,000 on top of the $450,000 the city originally invested.However, she did not have an estimated economic impact spin off from the campusbut said it could be 10 to 20-fold over the city’s initial investment.

    “Cincinnati State has three otherdowntown buildings to grow into and I envision there will be more,” she said. “Cincinnati State will also complimentthe programs at Miami University Middletown.”

    Gilleland, who is retiring in about twomonths, said the campus is important to the downtown community and is animportant downtown anchor. One of her original goals when she was hired as citymanager several years ago was to transform the downtown district into an arts,entertainment and education district.

    “That is coming to fruition and I’m pleasedwith the development of downtown,” she said.

Gillelandsaid the project was a win-win for the city and Cincinnati State’s administration andboard of trustees.

    “They believed and embraced the city’svision in redeveloping the downtown,” she said. “It’s also helping toreinvigorate the entire community.”

    While he isn’t sure if anyone really knowsthe impact Cincinnati State will bring to theregion in the coming years, Rick Pearce said the college is working close withthe business community to address their workforce development needs.

    “Many companies in our area need a highlyspecialized workforce with special skills, whether that be technicalmanufacturing or IT,” said Pearce, who is the president and chief executiveofficer of The Chamber of Commerce serving Middletown, Monroe and Trenton. “The currenteducational system, by no fault of theirs, is just not fulfilling those needs.The world is changing so rapidly.”

    Pearce said as new programs are developedand adopted into the curriculum at Cincinnati State and employers begin tohire those skilled individuals, you will see more students and facilities beginto see the benefits of those programs.

    “The obvious end result would be that wewould have an influx of facilities move to the area, due to the fact that thearea has a skilled workforce,” Pearce said. “I see Miami University and Cincinnati State complimenting eachother with the services they offer. Many students are anxious to obtain thenecessary skills and join the workforce quickly. What Cincinnati State has to offer could beperfect for them.”

    He said once those students are in theworkplace for a number of years, they may discover new interests that take themdown another path.

    “Miami University will be there ready toassist them in reaching their next set of goals,” Pearce said. “It’s going tobe extremely beneficial to the area to have two post-secondary institutions oflearning serving the educational needs of the next generation.”

    Some local school districts are alreadyworking to become affiliated with Cincinnati State.

Lastmonth, the Middletown Board of Education approved the opening of an enrollmentcenter for the college at Middletown High School.

    The Middletown board will be providingspace at the high school for students to talk with college admissionrepresentatives, discuss financial aid options as well as assist seniors withdual enrollment courses or to sign up for classes at the downtown college.

    The Franklin Board of Education last monthapproved a memorandum of understanding that would create a dual enrollmentprogram with Cincinnati State, said SuperintendentMichael Sander.

    He said in addition to students being ableto earn dual credits for high school and college courses, Franklin teachers would beworking with the college to develop a syllabus that would be rigorous enough tomeet Cincinnati State’s standards. Sandersaid it would also create an opportunity for Franklin teachers to be approvedto teach at Cincinnati State.

    “I’m not sure how many teachers would beparticipating, but I think there will be a fair number,” Sander said. “Ourjuniors and seniors like to be academically challenged.”

    He said the district was moving slow on thememorandum of understanding rather than rushing things through. Sander said theWarren County Educational Service Center would coordinating theprogram for the county’s school districts with Cincinnati State.

Then how did HEP-CS sell a building located at 1 North Main St, Middletown, Ohio, that they didn’t own?
The deed was signed on April 23, 2014.

Middletown City Council Meeting
1-08-2013

RESOLUTION NO. R2013-01

ARESOLUTION TO ESTABLISH THE HUD SECTION 108 LOAN FUND AND TO MAKE ADJUSTMENTSTO APPROPRIATIONS FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE CITY OFMIDDLETOWN, COUNTIES OF BUTLER AND WARREN, STATE OF OHIO, FOR THE PERIOD ENDINGDECEMBER 31, 2013 AND DECLARING AN EMERGENCY. (HUD SECTION 108LOAN FUND)

|
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of

Middletown,Butler/Warren Counties, Ohiothat:

Section 1

Thereis hereby established the HUD Section 108 Loan Fund.

Section 2

Thefollowing sums are hereby appropriated from the HUD Section 108 Loan Fund ofthe

Cityto accounts of the City for the purposes herein described as follows:

FROM:Unappropriated HUD Section 108 Loan Fund (Fund #261) $1,000,000.00

TOTALHUD SECTION 108 LOAN FUND $1,000,000.00

TO:Accounts of 990 (261.990.52480) $1,000,000.00

Section 3

TheDirector of Finance is hereby authorized to draw warrants on the City Treasurerfor

paymentsfrom any of the foregoing appropriations upon receiving proper certificates and

voucherstherefore, approved by the Board of Officers authorized by law to approve thesame, or an ordinance or resolution of the City Council to make expendituresprovided that no warrants shall be drawn or paid for salaries or wages exceptto persons employed by authority of and in accordance with law or ordinance.

Section 4

Alllegislation inconsistent herewith is hereby repealed.

Section 5

Thisresolution is declared to be an emergency measure necessary for the immediate

preservationof the public health, safety and general welfare, to wit: to permit theimmediate appropriation of the loan funds upon receipt from HUD so they can bedisbursed to Higher Education Partners as soon as possible shall take effectand be in force from and after its adoption.

_____________________________

LawrenceP. Mulligan, Jr., Mayor

Adopted:_January 8, 2013___

Attest:____________________

Clerkof City Council

H:/law/leg/2013 Leg/r Creationand Approp HUD Section 108 Fund.doc