As of March 16, 2018, the former SeniorCitizens’ Building was transferred to Mike Allen’s LLC. The fourlots (which were an extension of the city building property, which gained Verity access /frontage), were also transferred on the samedate.

The date of transfer shows an unexplainedextended delay between Council’s approval of the sale in Novemberof 2017, and the transfer on March 16, 2018. That seems very odd.

The records don’t show a sale amount on anyof the parcels. So, the County has very little and /or incompleteinformation about this “deal.” That seems very odd.

The four former city lots are not evenconnected to the former senior citizens’ building because the old ColumbiaAve right of way runs between the lots and the building, which gives public access to One Donham Plaza from Verity. No record of thisaccess being vacated exists. Council … why aren’t YOU askingthese questions??? This is obvious and easy to see on the auditor’ssite by opening the map of any of the parcels transferred to MikeAllen.

Why would city land which is not even directlyconnected to his building, be of interest to Mike Allen? The landuse code for the four former city lots remains 640 E -Exempt PropertyOwned By Municipals. That seems very odd.

If (when) a viable business fails tomaterialize, will those lots be bought back by the city? Rememberthe city already handed over $250,000 to Mike Allen. All totaled heput up about $50,000. Hard to resist exchanging 50K for 250K. Whata sweet deal!! Maybe if we’re lucky he would only ask 100K forthose lots to be returned. And in a couple years the city might haveanother deteriorating building right under it’s nose!

Partial Parcel records follow (but they areeasily accessible on the auditor’s site). I couldn’t print themap but you can open it up on the menu on the left side of therecord.

SUMMARYOFOBJECTIONS TO SALES CONTRACT

Ithas been determined thataftera period of 40 years HUDwillallow,without anyrestriction, 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. HUDwill allow it.

Thismightpartially explain the timing of this proposed sale. But it doesn’texplain how or why the availability of the property became known ONLYto Mike Allen Real Estate, LLC. Thereare realtorsandother possible investors inour community who were VERYsurprised that thisproposed salesuddenly appeared beforecouncil withNOOPPORTUNITY FOR COMPETITIVE BIDDING. Doesthe violation of the Sunshine Law come to mind???

Thesale of any city property valued above $5,000, without receivingcompetitivebidsis PROHIBITEDby Ohio Revised Code. This may be the most contentious andimportant point about this whole matter.

Don’tforget, thissale is practically a giveaway at $50,000 and the city may be fundinga $200,000 cash grant!!! … thatmakes this a negative sale. So,MiddletownPAYSTHE BUYER$150,000TO TAKE IT!!!!.

Allthe above might be seen as ENTICEMENT or motivation for the buyer,MARH,LLCto purchase an older, unsuitable building inan area with no potential customers.Thenthebuyer“SAYS”he will spendover $1milliontotransformit intoa state of the art BMW Motorcycle salesroom and repair shop. Severalother “investors” who were awarded “steal deals” have madesimilar promises and many of them abandoned their projects. Thoseabandoned properties are all over the downtown area.

Our“unsuspecting” council members havetheir blinders on, withone exception, whose question was stonewalled. Theyeitherhaven’t bothered to reador understandthe sale contract or havejusttakenMr Adkins’ word (asusual) thateverything is fine and they don’t need to know the details …thosedetails that are going to cost us a lot of money … $150,000.

Whoknows what elselurksin the verbiageof Mr Adkins’ lengthy legislation that he has instructed council toblindlyapprove. Everythingissosuspiciously hurriedup and muddiedup. WHY?Whycan’t the city’s business be conducted openly and above boardaccording to the Sunshine Law?

Thereare so many other contentious points built into the Contractfor sale which are suspiciously confusing and (itseems) purposely difficultand time consuming to verify (andtime is perhaps purposely short … declaringan emergency). Forinstance, why has an Energy Special Improvement District, ESID andPACE program been attached to this sale? Justificationfor the city funded $200,000 grant?!?!? Andno explanation has been given for the inclusion of 4 “city buildinglots” in the sale contract.

Thisentire “deal” lookslike it was designed and manufactured specifically and exclusivelyfor MARH, LLC.  ALL UNETHICAL & POSSIBLY ILLEGAL

MORETHOUGHTS andthe most important ones are the following.

First,we have no assuranceexcept Mr Adkins’ unsubstantiatedword,that the Senior Citizen’s building is no longerunder 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’sall clear as mud with somuch citingof so much legislativejargon and mysterious creation of an ESID, EnergySpecial Improvement District,using property that is part of the city building land … all this isaddressed below. Hasany council member bothered to read the proposed legislation or salecontract?? Yeah,it’s difficultto follow Mr Adkins’ (perhaps purposely)disjointed presentation. Sadlyit makes for a lengthy disjointed explanation … but please bearwith me.

Readthe ORCwithwhich Mr Adkins must comply.

721.29Sale of real estate without bidding.

Thelegislative authority of a city may sell toa board of county commissionersrealestate belonging to the city thatis no longer needed for city purposesupon such lawful terms asare agreed upon between the city and the board of countycommissioners,withoutcompetitive bidding as required by section 721.03of the Revised Code.Nosuch sale shall be made unless the contract for the sale isauthorized by ordinance, approved by a two-thirds vote of the membersof the legislative authority of the city, andby the board or officer having supervision or management of the realestate.

Addedby 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 estatebelonging to the city, may be sold only to aboard of county commissioners … andmust be authorized and alsoapprovedby a two-thirds vote on a city ordinance. Andalsomustbe advertised according to ORC 721.03 below.

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

Nocontract, except as provided in section 721.28 of the Revised Code,for the sale or lease of real estate belonging to a municipalcorporation shall be made unless authorized by an ordinance, approvedby a two-thirds vote of the members of the legislativeauthority of such municipal corporation, and bythe board or officer having supervision or management of such realestate. When the contract is so authorized, it shall be madein writing by such board or officer, and, except as provided insection 721.27 or 721.29of the Revised Code, only with the highest bidder, afteradvertisement once a week for five consecutive weeks in a newspaperof general circulation within the municipal corporation or asprovided in section 7.16 of the Revised Code. Such board or officermay reject any bids and readvertise until all such real estate issold or leased.

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

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

EffectiveDate: 09-11-1961.

Thenthere’sthe mystery of the sudden need to create an ESID,EnergySpecial Improvement District! That“District”being comprisedof theold SeniorCitizen’sproperty alongwithfour other lots, beingparcel numbers Q6511014000060 Q6511014000059 Q6511014000057 Q6511014000055(parcelswhichare actually listed with the city building propertyandare a green space located between the Senior citizen’s building andthe Post Office parking lot). Ifyou search by Parcel No. on theButler Co. Auditor’s site you will get “no data found”butsearch under owner City of Middletown … and there they are, rightin line with the city building. Arethey really going to sell those small parcels??? WHY?

Seeon page 30 of the workbook of 11/21/17 that a Petition for Creationof Energy Special Improvement District. Quotefrom the workbook:

TheCityof Middletown, Ohio, anOhio municipal corporation (“the Petitioner”)is the owner of 100%of the property described on ExhibitA,attachedto and incorporated into this Petition (the “Properties”). Theundersigned represents that he or she is the duly authorizedsignatory or officer of the Petitioner.

[Takenote … “theCity”, as stated above, is “the Petitioner” and theCity is petitioning itselfasstated below. What kind of garbage is this that Mr Adkins is tryingto sell to our uninformed (or misinformed) council??? Larry Mulliganseems to be the only one who “understands” why this convolutedmess is being promoted by Mr Adkins.]

ThePetitioner respectfully petitions the City of Middletown, Ohio (the“City”)for the creation of an energy special improvementdistrict initially to be named the Middletown Energy SpecialImprovement District, but at any time and from time to time to benamed the unique proper name only of each participating politicalsubdivision, as defined in Ohio Revised Code Section 1710.01(E), ofthe special improvement district (the District) pursuant to OhioRevised 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. EndQuote.

Inorder for a “district”to be created there had to be more than one lot or property, thus theaddition of the 4 “city building lots” to the deal. Andeach lot must have its own improvement plan!! Haven’tseen any mention of anysuchplans. Ifthis mess is voted in and no improvementsareset up on EACH little lot … then all this is a FRAUD. Now,remember that in order tosellthis city owned property, therehas to be approval bya board ormanaging officerof saidproperty, thus the need for a board or manager where none hadexisted.

Pleasereadthequotes belowfrom the cityordinanceconcerningthe ESID:

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

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

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

improvement project pursuant to OhioRevised Code Chapter 1710;

WHEREAS,the City Council, as required by OhioRevised Code Section 1710.02, must approve or disapproveof the Creation Petition within 60 days of the submission of thePetition;

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

WHEREAS,approving the Creation Petition serves the public interest andpromotes the public good;

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

Section1

TheCouncil approves the Creation Petition in substantially the form nowon file with the Clerk of Council.

Section2

TheCouncil, in accordance with Ohio Revised CodeSection 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 ofthe legislative 

authority of City of Middletown on the board ofdirectors.

FYItheORC Chapter 1710requiresthat the sale of city property must be approved by the board orofficer managing such real estate. And they have appointed LawrenceP. Mulligan, Jr.(seeSection 2 above)toserve aloneonthe boardwhichwas supposed to have 4 or 5 members ofa virtually NON-EXISTENTESID,UNTILit wascreatedsimultaneouslywith this sale. Towhat purpose? Maybethere is dual purpose! Seemore below about financing availablethru the ESID. Andthere is a clause at the very bottom of ORC1710.02 which gives THEBOARD OF DIRECTORS OF A SPECIAL IMPROVEMENT DISTRICT (ESID) TO SELLANY SUCH DISTRICT WITHOUT ADVERTISING OR RECEIPT OF BIDS. Couldthis be a lastditch back-upplan to circumvent HUD’s claim and/or rulesfor advertising for bids on this property???Here’sthat excerpt from ORC1710.02:

Theboard of directors of a special improvement district may, acting asagent and on behalf of a participating political subdivision, sell,transfer, lease, or convey any special energy improvement projectowned by the participating political subdivision upon a determinationby the legislative authoritythereof that the project is not required to be owned exclusively bythe participating political subdivision for its purposes, for usesdetermined by the legislative authority thereof as those that willpromote the welfare of the people of such participating politicalsubdivision; to improve the quality of life and the general andeconomic well-being of the people of the participating politicalsubdivision; better ensure the public health, safety, and welfare;protect water and other natural resources; provide for theconservation and preservation of natural and open areas andfarmlands, including by making urban areas more desirable or suitablefor development and revitalization; control, prevent, minimize, cleanup, or mediate certain contamination of or pollution from lands inthe state and water contamination or pollution; or provide for safeand natural areas and resources. The legislative authority of eachparticipating political subdivision shall specify the considerationfor such sale, transfer, lease, or conveyance and any other termsthereof. Any determinations made by a legislative authority of aparticipating political subdivision under this division shall beconclusive.

Anysale, transfer, lease, or conveyance of a special energy improvementproject by a participating political subdivision or the board ofdirectors of the special improvement district may be made withoutadvertising, receipt of bids, or other competitive bidding proceduresapplicable to the participating political subdivision or the specialimprovement district under Chapter 153. or 735. or section 1710.11 ofthe Revised Code or other representative provisions of the RevisedCode.

MrAdkins is covering his a.. byevery underhanded, clandestine legislativemanipulation he can think of. Couldthisbethe reason for thesuddenestablishment of the ESID! Ifonly he had spent his time in anHONESTendeavor to improve Middletown’s financial bind. Thismuddy mess definitely isn’t improving our bottom line by givingmore assets away.

Section3

TheCouncil approves and consents to (i) any addition of real property tothe territory of the District within the boundaries of any municipalcorporation or any township which is contiguous to the municipalcorporations or townships in which a portion of the territory of theDistrict is located; (ii) the addition of the municipal corporationor township in which such real property is located as a“participating political subdivision,” as defined in Ohio RevisedCode Section 1710.01(E), of the District; and (iii) any amendment tothe Articles of Incorporation necessary to recognize or effect suchaddition.

Section4

Itis found and determined that all formal actions of this Councilconcerning and relating to the adoption of this Resolution wereadopted in an open meeting of this City Council, 

and that alldeliberations of this Council that resulted in such formal actionwere in 

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

discussion at a council meeting?)

Section5

Thisresolution is declared to be an emergency measure necessary for theimmediate 

preservation of the public health, safety, and generalwelfare, to wit: toallow the 

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

take effect and be in force fromand after its adoption.

ABOUTTHE FINANCING CLAUSE: Takenote that there is financing available, apparentlythroughthe ESID. Itwould be interesting to know whether there will be grants availableand in what $ amounts for the purpose of energy improvements. (Whyelse should there be anESID, MiddletownEnergy Special Improvement District (the “District”) created? What,if any, requirements/restrictions would therebefor installing such improvements (maybea couple of photo-voltaiccells ata minimal cost)??? If there is such an advantage, anddepending on the $’s involved, then MARH, LLC might be purchasingthe old Senior Citizens Building for $0 when all is said and done. RatherHUGE incentives!! Why wasn’tthis kind of incentive advertisedand offeredopenly to any and all prospective investors?? Yes,theentirepreviousscenario doessound outlandish!!! Butshouldn’tthe cityat least try to garnerSOME compensation for the sale of an asset valued at $300,000!!! Citycouncil is responsible for the financial health of the city not thewelfare of speculators looking for a sucker.

Itappearsthat MARH, LLC is financially able to do what they say they will, butwhenconsideringall the incentivesthey’ve been offered, theremighthavebeenalot of equally able prospective investors whowouldleap on this kind of giveawaydeal.

Hey. . . Council . . .you should be researching all of this and asking thesequestions. Thisis a prime example of why Middletown is BANKRUPT! Andresident apathy can’t beblamedfor council’s lackadaisical, uninformed and sheep like misled lackof leadership, thanksto Mr Adkins overpowering grip and control on council’s lazybrains. 

Mr Adkins has told them timeand time again,behind the scenes, how to vote and never mind researching foryourselves. Just do as he says!!! Dowe have a modern day Rasputin on our hands? The internet describesRasputin (an acquiredname, Russian, literally "debauchee") as a mysticand faith healer (themad monk)who held sway over thecourtof Nicholas II of Russia. His nickname derivesfrom his doctrine of "rebirth through sin," that true holycommunion must be preceded by immersion in sin. Thusthe downfall of the Russian Empire.

MORETHOUGHTS

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

Accordingto Ohio Revised Code, city properties must be so declared before theycan be sold.

Chapter721: SALE OR LEASE OF PROPERTY

721.01Lease or sale of municipal property.

Municipalcorporations have special power to sell or lease real estate or tosell personal property belonging to the municipal corporation, whensuch real estate or personal property is not needed for any municipalpurpose. Such power shallbe exercised in the manner provided by this chapter.

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

EffectiveDate: 10-01-1953 .

Howcan thecitycouncil possiblydeterminethatthisproperty “is not presentlyneeded”while renting office space in the Goetz Tower?? Thereis obviously available space for offices in this adjacentcityowned building atno additional cost to the tax payer. 

 Besides, we all know why thecityrentedofficespace inGoetz Tower … they needed toshow cashflow in order to get a loan. Aren’ttheystill looking for that loan, unsuccessfully!! Has anyone seen anycity employees using office space in Goetz Tower? IsGoetz Towerin any conditionto rent out space??Guessthere’sbeenMOREtaxpayers money handedover to cronies…

Arecentcheck of the property forsale at140 N. Verity shows a brand new gas meter has been installed with 00usage. But accordingto the ordinance (seequote below),MARH, LLC was supposed to be responsible for separatingand installingall utilities(sequote below).Sothe city has partially done this before the deal is done. More favors and giveaways!!!

SECTION3. DEVELOPMENT OF THE PROPERTY

(a)Project Details. The Redevelopment of the Property will include therenovation of the Property for reuse as a new and used motorcycledealership that offers parts and service to customers D.B.A BMWMotorcycle of Greater Cincinnati. In addition to the $50,000acquisition cost, the renovation will be BMW brand approved upgradeswhich includes the projected amounts of: $293,000 in construction,$50,000 in machinery and equipment, $100,000 in furniture andfixtures, and $780,000 in inventory. Developeralso agrees to separate any the HVAC, water, electric, and naturalgas connections from the City Municipal Buildingthat currently exist and install and obtain the proper equipment andmeters required to safely operate the proposed project on theProperty, exceptthat the City shall bear the cost and responsibility for capping offthe existing water supply lines to the Property and removal of anyunderground plumbing.

Also,are they really going to have upstairsapartmentsas the “Contract for saleof land for development states (seequote below)?

“WHEREAS,after conveyance of the Property from the City to the Developer, theDeveloper intends to renovate the property to develop space forretail operations and upstairsapartments uponthe Property (hereinafter the “Project”), which will increasecommercial activity in the downtown area and create employmentopportunities in the City; and”

Andthere’s more to come …

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

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

Why, after the city left thebuilding 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 RealEstate Holdings, LLC suddenly become interested? Because he wasguaranteed to have no competition for the purchase? Who else hasever paid $300,000 and then got a $250,000 rebate? Although,admittedly, city hall is notorious for giving property away tocronies who have promised, but failed to invest their own money. 

Ifit looks like a scam and smells like a scam, it probably is ascam!!!!!

There may be more thoughts tocome … 

Pleaseread in Tuesday’s Journal-News a Richterized front page articlebelow.

Butfirst, getting any building off of the city’s back would be good IFIT IS DONE BY THE RULES up front and honest. This proposedconveyance is full of holes, misinformation and underhandedintentions per Mr Adkins.

Formersenior center could get new life

Firmwants to convert Middletown building into motorcycle dealership.

MiddletownCity Council will consider selling the former Middletown SeniorCenter on North Verity Parkway to a company that wants to locate aBMW motorcycle dealership there. GREG LYNCH / STAFF

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

Thebuilding, which is located next to the Middletown City Building andis a part of Donham Plaza, is being proposed to become a BMWmotorcycle dealership.

MikeAllen Real Estate Holdings, LLC, doing business as BMW Motorcycles ofGreater Cincinnati, wants to invest more than $1.27 million inconstruction and upgrades to renovate the former senior citizenscenter at 140 N. Verity Parkway, according to a staff report preparedby Alexis Fitzsimmons, assistant economic development director.

Thebuilding has been empty for the past decade since a new senior centerwas built on Central Avenue in 2007.

Thebuilding was empty even though it had been conveyed to HEP-CSTCC,Cincinnati State Community College, an approved nonprofit (asrequired by HUD under community block grant restrictions) but waslater returned to the city, at a certain cost. HUD properties ownedby the city may be conveyed only for nonprofit use. The exchangeof ownership does not lift the block grant restriction of nonprofitownership of this property. HUD authorities are apparentlyunaware of this proposed conveyance to a profit entity which ignoresthe community block grant restriction that it can only be conveyed tononprofit.

Ifthe city is going to continue and complete this transaction then theywill also be in violation of the STATELAW which requires that any property worth more than $5000must 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 willnot require that $250,000 of the purchase price be forgiven plusreceive a 12-year 100% tax abatement.

Thecompany wants to create the BMW dealership that would sell new andused motorcycles and parts, general merchandise and offer service forcustomers as well as employ at least 12 full-time employees andcreate $375,000 in new payroll.

Fitzsimmonssaid the project would include the separation of all utilities fromthe city’s municipal building. Both buildings were built in themid-1970s.

What?After nearly10 years the utilities have not been separated, whichmeans we, the tax payers, have paid HEP’s utility bills all thistime!!! 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?

IfMiddletown City Council approves the sale of the building and a12-year, 100-percent Community Reinvestment Area tax abatement, theproject would start construction during the first quarter of 2018 andbe completed by Dec. 31, 2018.

Theagreement would also get another empty building and property andtheir maintenance costs off of the city’s books and placed backinto productive use.

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

Inthe agreement, the city would agree to sell the property to thedeveloper, and the developer agrees to purchase the property for thepurchase price of $300,000. The developer will pay $50,000 in cashpayable to the city simultaneously with delivery of the deed. Thedeveloper would be granted a credit in the amount of $250,000 againstthe remainder of the purchase prices for completing the project asdescribed in the development and sale agreement.

Alsoas part of the agreement, the city would be required to pay theMiddletown City School District 25 percent of what the district wouldhave received had this tax abatement not been in place, this isrequired as a part of the Comprehensive School Compensation Agreementpassed in December 2015.

Thisall sounds good, but there have never been property taxes on thisnonprofit property. The Auditor has never appraised this propertyfor tax purposes! So the Middletown City Schools get 25% of $0, orif the Auditor places the value at $300,000, Mike Allen can claim theactual purchase price was $50,000. Anyway, why should the Auditorplace a value on this for tax purposes when no taxes will be paidover the 12 year 100% abatement. Oh, what a web we weave.

Noone has taken note that there are 5 parcels listed that will beconveyed. Only one of those is the Senior Citizen building. Theother 4 parcels are green space between the Senior Citizens buildingand the Post Office parking lot. What remains of Columbia Ave. runsbetween The Senior Citzens building and the green space and up to 1Donham Plaza pavers. What city owned property will they sell next …the city parking lot?

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