EVENDALE C.I.C. BOARD MEETING
MINUTES OF THE AUGUST 20, 2007 MEETING
7:30 A.M.
The Evendale Community Improvement Corporation (CIC) met at 7:35 A.M. in the Municipal Building Conference room. Members present were Jeff Albrinck, Doug Lohmeier, Dave Harwood, Stiney Vonderhaar, Don Hills, Hugh McKinnon, and Natalie Greulich. Also present was Linda Fitzgerald (Economic Development Consultant) and Jack Cameron (Mayor's Assistant).
Approval of July 9, 2007 Meeting Minutes
On a motion by Stiney, seconded by Hugh, the CIC unanimously voted to approve the minutes from the July 9, 2007 meeting with the following two corrections: 1) Hugh McKinnon was present at the meeting, and; 2) at the top of page 2, change the phrase "to remove the dilapidated water tower on the Brendamour property" to "to remove or address the dilapidated water tower on the Brendamour property".
Brendamour Evendale Business Center Water Tower
Natalie, Stiney and Don explained that their intention had been for council to investigate the possibility of renovating the water tower and using it as a marketing tool for the village. Hugh said his recollection is that staff would ask council if they would provide financial support for either demolition or renovation. Jeff explained that the consensus of council was for the village/CIC to cost share up to $25,000 for the demolition (not renovation) of the tower. Stiney reviewed Council's history on considering what to do with the tower, noting that different administrations had voiced different opinions on the best way to proceed, i.e., demolition versus renovation. Linda said that Mayor Apking had met earlier this year with Doug Brendamour and told him that he would try to get council approval to cost
share in the demolition OR renovation, but that council decided not to participate in either. Subsequently they agreed to participate in demolition only using the CIC as a pass through for their financial contribution. Jack summarized the economic benefits (new investment and job creation) that have accrued from Brendamour's renovation of the old Cincinnati Electronics facility, adding that council's participation through CIC was being done as an economic development reward for past jobs and as an incentive for anticipated new job creation.
Jack said he had secured estimates last week to demolish the tower and they ranged from $55,000-$65,000; painting the tower would be even more expensive and would incur ongoing maintenance costs on private property (need to re-paint every 20 years). Natalie asked if council had considered the potential marketing value of retaining the tower; Doug replied yes they had but they did not want to proceed in this direction. He asked Natalie if the sign was painted, who would be responsible for deciding what goes on the sign. Natalie replied that the village has advertised before, although not at this level, and she felt the village/CIC could agree on a logo/advertisement. Stiney asked if this project would set a precedent for donations to businesses for work on private property. Jack replied that he
does not think this will be an issue in the future since there is no other office building in the village that employs 500 jobs (the basis for the incentive).
Dave noted that the CIC has a CD due in December and this could conceivably be used to make the contribution, although the village council would need to reimburse the CIC. He suggested that Tim Burke draw up an agreement between the CIC and Brendamour outlining the terms of the contribution. Once Brendamour presents CIC with a paid receipt for the demolition, (and the village verifies that the work has been completed), he will be reimbursed. There was some discussion as to whether the CIC should donate 50% of the demolition project not to exceed $25,000; this led to further discussion on whether the village's contribution could be used for items such as landscaping and restoring the parking lot after the demolition. The consensus of the group was that it was best to keep the language simple.
On a motion by Doug, seconded by Dave, the CIC agreed to contribute $25,000 toward the demolition as long as the solicitor draws up an agreement between the village/CIC and Brendamour and the demolition is completed before the end of 2007. All members voted yes with the exception of Stiney Vonderhaar who voted no.
Evendale Surgery Center Update
Linda updated the CIC on the village/CIC plans to acquire from Neyer/Equity an approximate 4 acre portion of the Evendale Crossings Shopping Center (from the Asian Market west) to resell to Prexus (Evendale Surgery Center) for expansion of the Surgery Center with a Medical Office Building and Sleep Center. Stiney asked if the Surgery Center will be able to fit both the Medical Office Building and Sleep Center on the site as their initial plans indicated 6 acres would be required. Linda replied that their preliminary plans show both structures situated on the site in two separate buildings. Jack said that the Surgery Center's architect is on vacation this week but he will provide a more detailed site plan to the village next week. Hugh asked if the new buildings would abut the existing facilities;
Jack explained they would not and showed the members the preliminary site plan. Linda said that staff and attorneys from Neyer/Equity, Prexus and the Village have been meeting regularly to iron out the details of the deal. Issues such as signage, parking, and cross easements for access are all being addressed in these meetings. Hugh asked if Neyer/Equity owned the PNC property; Jack replied they do not. Linda noted that she and Jack have tried several times to get PNC to agree to sell and relocate elsewhere in the village, but to no avail. PNC has paid off the mortgage on the property and they do not see potential for new roof tops (customers) in Evendale; therefore, they are content to stay where they are.
Natalie asked if Prexus had met the job creation and investment commitments from the first incentive the village had provided them for the existing medical facilities. Linda replied that they had exceeded their goals and had done so one year earlier than anticipated (in year 3 versus year 4). Dave noted that if you factor in Present Value, it would take the village 15 years to recoup the current proposed subsidy. He said that if the village was only looking at the deal as a tax investment, it would not be a good deal since 10 years is considered a reasonable time for ROI. But, there is a value that the project brings that is less tangible than tax revenues but equally important, namely aesthetics and the triggering effect the project will have in generating other similar investments. For
example, Neyer might not have built their office condominiums if the Surgery was not in Evendale. He also feels the new investments will allow the village to command a higher price for landbanked properties. Dave did ask George to run the numbers to confirm his own calculations and this was done. Based on the above anticipated benefits from the project, Dave is comfortable with the proposed subsidy. Linda thanked Dave for his thorough cost-benefit analysis of the proposed project. Stiney noted that this deal will also help Neyer lease the former Jewish Hospital Building that they now own. Linda confirmed that when Neyer purchased the building, it was 60% vacant, and it is only 40% vacant now.
Dave said it is frustrating that despite three attempts over 6 years, the village has been unable to purchase PNC. Natalie asked if PNC is familiar with Evendale's Reading Road Revitalization Plan, Access Management Plan and the Master Plan that is currently being conducted. Linda replied that she and Jack had met with PNC officials responsible for land sales and acquisition, and made them aware of all these plans; this did not change their plans to retain the branch in it current condition and location. The Surgery Center, Neyer and village have all made legitimate offers (as high as $1.2 million) to PNC and all have been declined on the basis that they are not in a growth mode.
Between now and the September meeting, Tim Burke and staff will continue to work with Prexus and Neyer/Equity to finalize the purchase agreement and redevelopment agreement. All due diligence (environmental and resolution of access issues and relocation of tenants) must be completed by October 26, 2007 and the closing must occur before December 6, 2007. Stiney asked if the village could get a first right of refusal on the balance of the shopping center; Jack said he would raise this issue with Neyer/Equity. Linda will keep the CIC informed of the terms of their involvement in the process, namely as a pass through for the acquisition and sale. They can expect to meet to authorize the proposed deal sometime in October.
Economic Development Updates
Aldi will soon be opening in the Evendale Crossings; they have a 10 year lease. Negotiations still continue with Dollar Store.
The Village has agreed to purchase the vacant America's Best Motel (the former Travel Lodge) on Glendale-Milford Road for $1.4 million. This is $200,000 less than the outstanding mortgage of $1.6 million. The property contains 11.5 acres. The building will be demolished to pave way for a new development. Dave asked what the end use will be. Linda replied that the Master Plan Steering Committee will weigh in on the future use. Two recent developers who had shown interest in the property (Miller Valentine and Midland) had planned to market the site with highway-oriented businesses.
Linda attended the ribbon cutting for the CSI Transfer Station. The P&G Mr. Clean Car Wash grand opening will be in late October. The new Subway building is under construction where the former Dairy Mart was located.
Chipotle has signed a lease in the Evendale Commons. Wal-Mart purchase the Dairy Mart liquor license.
Neyer has one of their new medical office buildings fully leased. The village will continue to monitor management of access into the site, specifically to determine whether a left hand turn should be prohibited.
The Master Plan Steering Committee continues to identify desired future land uses for specific "redevelopment policy areas". The Plan should be completed by the end of the year.
Jack said that the CIC needs to authorize reimbursement of $2,513 to the village which the village had fronted for payment of the bi-annual audit. On a motion by Stiney, seconded by Hugh the CIC unanimously approved the payment.
Stiney and Jack updated the CIC on the "Thru the Valley" project, particularly the widening of I-75 between Glendale-Milford Road and Shepherd Avenue and the elimination of the Neumann Way connector. Under the new design, all GE traffic will enter and exit at either Glendale-Milford Road or Shepherd Avenue. ODOT will give the village and GE an opportunity to review and comment on aesthetics, bridge design/painting, highway lighting and landscaping. The village will need to monitor and plan for increased traffic on Glendale-Milford Road as a result of the closing of Neumann Way.
Next Meeting and Adjournment
Linda said she would let the members know if there will be a September meeting. On a motion by Stiney, seconded by Doug the members unanimously voted to adjourn at 9:05 am.
Respectfully submitted,
EVENDALE COMMUNITY
IMPROVEMENT CORPORATION
By: __________________________
David J. Harwood, Secretary/Treasurer
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