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

Bank building deal pulled from council’s agenda

By  http://www.journal-news.com/staff/ed-richter/" rel="nofollow - Staff Writer

MIDDLETOWN — 

A proposed sale of the former Bank One building was pulled from the agenda just hours before it was to be considered by Middletown City Council.

“This action in no way is a reflection on the creative proposal we received from Chris Walden and his associates,” said City Manager Judy Gilleland in a email to the Journal-News late Tuesday afternoon. “In fact, staff and City Council was excited to work with Chris on this project because of his world-class artistic talent and his vision of an art gallery and event center for the building.”

The legislation to approve the sale of the downtown building was on tonight’s council agenda before it was pulled from consideration.

“The rebirth of downtown Middletown has created a demand for space and we have received a few inquiries about the building in the last several weeks,” Gilleland said. “As such, we have decided that it is appropriate to gauge the public interest in the building.

Gilleland also said city staff would be meeting in the near future to discuss the next step, which will likely include a request for proposal. She anticipates the process to be accomplished in the short term.

In an email sent by investor Mike Robinette to Mayor Lawrence Mulligan, Robinette asked that tonight’s discussion and vote on the city-owned Bank One building be tabled. Robinette, Middletown’s former economic development director, is part of an investment group, Geo CRE, which already owns the Goetz Tower and the Rose Furniture building in the downtown.

At the 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 and owner Chris Walden planned to convert the building into an art gallery and event center. Doug Adkins, director of community revitalization, told council Toast 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 city out of the landlord business.

Robinette has said that he was interested in buying the building, but was told by city officials that it wasn’t for sale, since it was being leased to Miami University Middletown. But when Robinette learned that Toast of the Town Events had 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.

Robinette wrote that the city should conduct a competitive process for the sale of this property. He said the Bank One property is significantly more valuable than the negotiated price of $135,000.

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

The building is valued at $137,980, according to the Butler County Auditor’s Office.

In an email response to Robinette, Mulligan said council was interested in a selling the properties to “a broad, diverse group of investors and owners that can help move these properties forward.”

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

The city paid $275,000 in December 2010 to the Perry Thatcher estate for several downtown properties: CG&E Building, First National building, Masonic Temple and the Bank One building, Adkins said. He said the city received $202,000 from Higher Education Partners for the purchase of the former CG&E Building that is being used by Cincinnati State Middletown. If the Bank One building is sold, the city would make $62,000 off its investment.

City Council has donated the First National building to Cincinnati State Middletown and the Masonic Temple building to the Art Central Foundation.

Staff Writer Rick McCrabb contributed to this report. Contact this reporter at 513-755-5067 or at Ed.Richter@coxinc.com.