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Donald Trump Investing In Middletown

Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: City Council
Forum Description: Discuss individual members and council as a legislative body.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=5713
Printed Date: Nov 22 2024 at 3:39pm


Topic: Donald Trump Investing In Middletown
Posted By: acclaro
Subject: Donald Trump Investing In Middletown
Date Posted: May 05 2014 at 9:17pm

Former Cinergy building sold for $5.8 million

Deal won’t impact operations at Cincinnati State Middletown

Headache. Ohio allowing HEP to make 50% off each student, and HEP's break even 300 students, not 3000?

Interesting to get behind the curtains on these deals. This one can be looked at, curious to see what the HEP/ Cincinnati State margin to HEP to be. Nice 30 year firewall. Just as planned.


http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2014/05/05/97/0f/cincy.jpg" rel="nofollow - View Larger  
http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2014/05/05/97/0f/cincy.jpg" rel="nofollow">Former Cinergy building sold for $5.8 million photo

RICK McCRABB/STAFF
Higher Education Partners sold the building that houses Cincinnati State Middletown, 1 N. Main St., for $5.8 million. HEP said it has spent $5.5 million renovating the building and purchasing equipment. The college will continue operating out of the downtown building, officials said.
http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2014/05/05/4a/89/mj121212cinstatedonation2p.jpg" rel="nofollow - View Larger  
http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2014/05/05/4a/89/mj121212cinstatedonation2p.jpg" rel="nofollow">Former Cinergy building sold for $5.8 million photo
Nick Daggy
The sale of the former Cinergy building (right), where Cincinnati State Middletown is located, will allow High Education Partners to continue renovations and start remodeling the former Middletown Area Senior Citizens Center. STAFF / NICK DAGGY

By http://www.journal-news.com/staff/rick-mccrabb/" rel="nofollow - Rick McCrabb

Staff Writer

MIDDLETOWN —

The sale of the former Cinergy building, where the Middletown branch of the Cincinnati State Technical and Community College is located, will allow High Education Partners to continue renovations and start remodeling the former Middletown Area Senior Citizens Center, an official told the Journal-News on Monday.

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

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

Now with the money from the purchaser, Store Master Funding, which is based in Scottsdale, Ariz., HEP can continue expanding in the Middletown market, Perik said. He said renovations of the former senior citizens building will begin soon and hopefully be finished in time for next fall’s classes.

Michael Chikeleze, director of Cincinnati State Middletown, said the sale of the building will not impact the daily operations of the college.

Jean M. Manning, vice president of marketing and communications at Cincinnati State, said the college was pleased with HEP and its “continued commitment” to provide the environment necessary to educate more students as enrollment continues to grow. She noted that Cincinnati State never owned the buildings, and HEP consulted with officials at the college about the sale that was approved by the college.

Also, she said, the sale guarantees the college’s right to utilize the buildings for 30 years, up from the original agreement of 20 years.

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

In October 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 Education Partners finalized a contract to bring the county’s first community college to downtown Middletown. The deal had Higher Education Partners funding the construction and conversion of two buildings into a community college campus for the Clifton-based Cincinnati State. The 20-year deal between the two had four five-year extension options.

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

Gilleland said she was “extremely happy” that the building was sold and there was “a positive outcome.”

She added that the “system worked ideally” because the city had limited involvement in the deal.

“Isn’t that how it’s supposed to work?” she said.



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'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill



Replies:
Posted By: acclaro
Date Posted: May 06 2014 at 9:34am
This situation is about as bizarre as they come.

HEP sells computers, renovations, and a HUD bank loan bundled into a property deed. How can a property have assets having nothing to do with a building, be sold as a building, which raises property values on commercial property. There should have been two contracts. One for the buildings. A second one for computers, loans, and renovations that are physically not part of the building. Computer assets can be moved into another location, so it artificially raises value.

So HEP is going to lease the buildings and computers from Stone to meet its contract obligations to Cincinnati State.

Accounting nightmare. Obviously, HEP losing money and State not enrolling numbers anticipated. 


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'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill


Posted By: over the hill
Date Posted: May 06 2014 at 11:38am
Well if you decide to buy one of the buildings downtown I guess it will cost you more if you have an appraisal because if they use comps in the area what will a 5.8 million dollar sale do to the price? Do you call it falsely inflated property values? This should be interesting.


Posted By: Vivian Moon
Date Posted: May 06 2014 at 1:04pm
Gilleland said she was “extremely happy” that the building was sold and there was “a positive outcome.”
She added that the “system worked ideally” because the city had limited involvement in the deal.
“Isn’t that how it’s supposed to work?” she said.

No, Miss Judy, this is not how the system should work.
If this was such a GREAT THING that HEP-CS had sold the CG&E building for 5.8 million dollars…why didn’t anyone know?…not even the movers and shakers of Middletown knew of this GREAT DEAL…not even Judy Bober, Assistant Director of Cincinnati State, knew that this GREAT DEAL had occurred on April 23, 2014.



Posted By: Vivian Moon
Date Posted: May 06 2014 at 4:41pm
Well, well, well…what do we have here?

It seems that it was just two short weeks ago that City Hall was ready to sell Bank One, the most beautiful building in the downtown area, with  22,713 sq. ft. of space, to TOAST OF TOWN for the bargain basement price of $135,000…without getting an appraisal, using emergency legislation, and without allowing other bids as required by law.


Gee…I can’t wait to see what Bank One will sell for now that we have a 5.8 million dollar building on the other corner.




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