By Katelyn Sattler
The Big Walnut Area Community Improvement Corporation tackled two interconnected purchase agreements on Oct. 24.
Skilken is developing Sheetz North on Alum Creek Drive between Industrial Center Drive and Lindsay Road.
“We (the city) bought the old Perkins land and this plays into two land purchase agreements,” said Obetz Law Director Gene Hollins. “Skilken is developing Sheetz North on that collection of properties, including the old car wash, the house north of it, and an L-shaped piece of ground. They’ll be responsible for extending Froehlich Boulevard until it hits Lindsay Road.”
Froehlich Boulevard will function as a service road parallel to Alum Creek Drive.
Obetz City Administrator Rod Davisson said, “This one is a neighborhood version (of Sheetz). It will not serve trucks. It doesn’t sell diesel. It will be a market-type drive-through.”
Davisson said the city bought the Perkins property for $550,000 and donated a one acre piece into the Sheetz project, which will create the Sheetz and spin off income tax revenue estimated to be $40,000 to $50,000 per year.
“Then we are selling the remainder of it to Ray Massa for $300,000 so he can stick it together with his development there,” said Davisson. “They’re also going to be entitled to a pre-1994 CRA (Community Reinvestment Area) and Gene’s (Hollins) working to deal with them where there’s a PILOT (Payment In Lieu of Taxes.”
Added Hollins, “It’s pre-94 CRA with a PILOT, so we can get some of that infrastructure out in back. Schools are okay because it’s pre-’94. And they’re undergrounding some overall electric.”
Davisson said a central retention pond was included, which the city is maintaining.
“But we’re selling that off with the properties. We’ll be out of the maintenance business over there,” said Davisson. “The best news is we’ve drawn out all the property lines where they need to be developed. Now, they’ll be the owners of what’s left here. They have the capability to combine those in whatever way they need. It makes the piece developable. Neither of these on their own were deep enough to be developable. So we should be able to get something in this area. They’re still working on what ends up back here in the trees.”
Hollins added, “The way we’re doing these real estate deals is to run them through the CIC. We think that makes sense from an Ohio Constitutional standpoint. But we’ve got an exception in the Ohio Constitution that lets municipalities and CICs work together so we can cut deals better than just put it up to the highest bid. It’s proven that with all our land holdings and with our future deals we’ll have in Buckstone to start running things through the CIC.”
Hollins said such purchase agreements are between Obetz City Council, the CIC, and whoever buys the property. He said it is “basically good boiler plate” that the title companies want to see to issue the title insurance and help close the transaction.
“I think that’s it,” said Davisson. “As we predicted earlier this year, this is probably the first of a lot of this kind of thing. We’re always looking for a way where these properties can generate revenue for the CIC that we can ultimately use in accordance with our CIC mission. There are some out there that are going to end up here that are income producing properties we would hold as a CIC while we can make some income on where we’re still financially sound. Without our largest source of revenue coming out of the old Crew buildings, we find a new source of revenue for the CIC.”
“The biggest and best use for CIC is to help the municipality do these types of economic development deals,” said Emmett Kelly, attorney with Frost Brown Todd LLC and for the CIC. “To have the land transaction a lot simpler through the CIC than having to go through all the bells and whistles they have to go through city council,”
The CIC approved the purchase and sales agreements among the city of Obetz, the Big Walnut Community Improvement Corporation, and Morse Road Development, LLC, and Pentagon III, LLC, for the sale and development of land in the city of Obetz.
Obetz City Council authorized Davisson to enter into purchase and sale agreements among the city, the Big Walnut Community Improvement Corporation, and Morse Road Development, LLC, and Pentagon III, LLC, respectively, for the sale and development of land in the city.