AGENDA 4-15-2014

Speaking of HEP, how are they taking the reduction in the student forecast to be less than 3,000 5 years out, when they needed 5000 for break-even? State augmenting their loss?

Now now Acclaro
I’m sure that City Hall can do some more magic math to explain this little shortage of students from 5,000 to 3,000. 
After all HEP has not even finished the rehab of the CG&E building yet.

Purchase Price: 

The City paid $275,000 for the Cinergy Building, First National building, Masonic Temple, and 

the Bank One building. The City received $202,000 from Higher Education Partners for the 

purchase of Cinergy. The sale of Bank One more than recoups taxpayer money used to fund the 

initial purchase of all of these buildings. 

OOOPS…Once again City Hall has forgotten what really happened with this deal of desperation. City Hall also gave Cincy State the Senior Citizen Building that was valued at $350,000 with the hope of a smaller Culinary School here in Middltown. Then later City Hall gave Cincy State the First National Bank Building. What was the value of this building?

Original Purchase Price by City: $275,000 for all buildings 

Less Cinergy purchase by HEP: -$202,000 

Deficit: ($ 73,000) 

Purchase price to City for Bank One: $ 135,000 

SUBJECT  1  

Net to City from all purchase/sale transactions: $+62,000
+ $62,000?…Well this logic and math magic explains why Middletown is going broke

Doug Adkins could easily be disbarred for his lie

Here's the Canon of Conduct- if they do nothing, they are truly making a mockery of ethical behavior.

 IV. TRANSACTIONS WITH PERSONS OTHER THAN CLIENTS

RULE 4.1: TRUTHFULNESS IN STATEMENTS TO OTHERS

In the course of representing a client a lawyer shall not

knowingly do either of the following:

(a) make a false statement of material fact or law to a third person;

(b) fail to disclose a material fact when disclosure is necessary to avoid assisting an illegal or fraudulent act by a client. Comment Misrepresentation

[1]

A lawyer is required to be truthful when dealing with others on a client’s behalf.

A misrepresentation can occur if the lawyer incorporates or affirms a statement of another person that the lawyer knows is false. Misrepresentations can also occur by partially true but misleading statements or omissions that are the equivalent of affirmative false statements. For dishonest conduct that does not amount to a false statement or for misrepresentations by a lawyer other than in the course of representing a client, see Rule 8.4.

Statements of Fact

[2]

This rule refers to statements of fact. Whether a particular statement should be regarded as one of fact can depend on the circumstances. Under generally accepted conventions in negotiation, certain types of statements ordinarily are not taken as statements of material fact.

Estimates of price or value placed on the subject of a transaction and a party’s intentions as to an acceptable settlement of a claim are ordinarily in this category, and so is the existence of an undisclosed principal except where nondisclosure of the principal would constitute fraud.

Lawyers should be mindful of their obligations under applicable law to avoid criminal and tortious misrepresentation.

 

If this is enacted then it is pretty clear that procedtures should be considered to have council investigated or removed, at least the immediate removal of our city manager and community development director and an investigation of our law director for again ignoring city ordances and state law.

Let's RETHINK this issue shall we? I am not a CPA, I just play one occasionally on tv. 

FACTS

Monthly positive cash-flow after expenses (quaisi EBITDA)- 2370/ mo./ 28,440/ annualized

Receipt of additional cash > 65,000 the offer on table, deal.

No expected loss for city within 3-6 months.

THEN WHY?

Is this an emergency, and closing needed to be done by May 31, 2014?

Does Robinette's group deviate from usage goals? Arts, et al? No.

Diversification of the investment portfolio. Why? How is the entity established a month ago financially stronger than any that have not placed bids? No.

Is the valuation at least 100,000 too low with positive cash flow over years? Probably.

MEMO TO COUNCIL

Pull back, open up bids 30-45 days, accept highest offer.

With this sense of urgency by Mr. Adkins.....how soon is the city selling Hook Field- June 01? No, there is no urgency to divest. 

ORDINANCE NO. O2014-18

AN ORDINANCE ESTABLISHING A PROCEDURE FOR AND AUTHORIZING A
CONTRACT BETWEEN THE CITY AND TOAST OF THE TOWN EVENTS, LLC
FOR THE SALE OF CITY OWNED PROPERTY AND DECLARING AN
EMERGENCY.

WHEREAS, the City owns certain real property more commonly known as the
Bank One Building, located at 2 South Main Street; and

WHEREAS, Toast of the Town Events, LLC has offered to purchase said
property; and

WHEREAS, the City is willing to sell the property at the offered price;

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

Section 1

The City Manager, without complying with the procedures of Chapter 721 of
the Ohio Revised Code or the procedures set forth in Ordinance No. 02002-87, is
hereby authorized to enter into a contract with Toast of the Town Events, LLC for the
sale of the real property located at 2 South Main Street known as the Bank One
Building. The contract shall be in a form substantially similar to Attachment “1”
hereto, and shall be acceptable to the City as approved by the Law Director and City
Manager.

Section 2

This Council hereby determines that the procedure to be followed in the award
and execution of the aforesaid contract shall consist solely of the procedure set forth
in this ordinance and the provisions of Chapter 721 of the Ohio Revised Code and
Ordinance No. 02002-87 shall not be applicable to the award and execution of the
aforesaid contract.

Section 3

The City Council hereby determines that the property to be transferred by the
City is not presently needed for any municipal purposes.

Section 4

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 5

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
permit the prompt transfer so the purchaser can begin renovation as quickly as
possible, and shall take effect and be in force from and after the earliest time
permitted by law.


______________________________
Lawrence P. Mulligan, Jr., Mayor


Adopted:___________________


Attest:_____________________
Clerk of City Council
H:/Law/leg/2014 Leg/O Sale of Property to Toast of the Town Events (Bank One).doc
Secti