JOSH, AJ, & ASJ

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Let’s review what we know from verifiable sources:

First Financial Bank foreclosed on 1607 Central Avenue. [1] [2]

On February 19, 2010, Daniel C. Diver purchased 1607 Central Avenue at a Butler County Sheriff’s sale. [1]

On March 12, 2010, exactly 21 days later, all necessary negotiations and arrangements have been made to post Emergency Legislation #5 for consideration at the March 16, 2010 City Council Meeting. [3]

Legislation #5, O 2010-23 states, in part, that:

“the procedures to be followed in the acquisition and disposal of real property shall consist solely of the procedure set forth in this ordinance, and that the provisions of Chapter 721 of the Ohio Revised Code and Ordinance No. O2002-87 shall not be applicable to the acquisitions and disposal of property authorized by the ordinance and the contracts therefore.” 
No explanation is given why these regulation for the acquisition or disposal of City property are not to be followed. [3]

Legislation #5 concerns the acquisition by the City of 1316 Vail Avenue by the City from a third party; the acquisition by the City of 1607 Central Avenue By the City from Mr. Diver; The payment by the City to Mr. Diver in the amount of $90,000.00; The conveyance of 1607 Central Avenue to the third party; and the payment of $5,000.00 to some unknown person or persons for the benefit of the third party’s “moving expenses”; all of the foregoing in violation of the provisions of ORC 721 and Middletown City Ordinance No. O2002-87. [3]

It is an assumption, on my part, that Mayor Lawrence P. Mulligan, Jr., is a Vice President of First Financial Bank.

The end result of all of the above:
Mr. Diver makes a $40,000.00 profit for an investment of $50,000.00 for a period of less than a month. [Do the math]

The third party acquires a 9,000 + SF commercial/light industrial building on a main thoroughfare, reported by the City’s Economic Development Director to be worth $125,000. [2]

Someone ends up with $5,000.00 for “moving expenses”. [2]

The City ends up with a 4,200 SF commercial/light industrial building, fronting on an alley, and scheduled for demolition; the cost of the demolition; the $95,000.00 cost of this three-way-swap.

First Financial Bank gets out from under $50,000 worth of a toxic loan.

Everybody wins but the taxpayer!!!
Sources:
[1]Butler County Recorder’s website.

[2]Middletown Journal story By Ryan Gauthier, Staff Writer 9:44 PM Monday, March 15, 2010. 

[3]Middletown City Council Workbook for March 16, 2010.

Ms. Scott-Jones, Mr. Smith, and Mr. Laubach:

This cannot be ignored!!!  It must be discussed!!!  (And NOT in an executive session!!)
This type of thing can no longer be tolerated in our city.  If necessary, we must bring in an independant investigator!!