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CIC Moves Closer To Fort Barbee Lease Agreement |
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Thursday, 07 January 2010 |
By MIKE BURKHOLDER
Managing Editor
ST. MARYS — A city entity moved a step closer toward gaining control of three storefronts in downtown St. Marys.
Members of the St. Marys Community Improvement Corporation (CIC) Wednesday night approved three resolutions regarding the three storefronts below Hotel Fort Barbee. The first resolution authorized the expenditure of $5,000 to prepare plans for the renovation of the storefronts — which passed unanimously. The second resolution will request an amount not to exceed $150,000 from the city of St. Marys in the form of a low-interest loan to pay for the renovations — with CIC members Brad Bartlett and John Wale voting against it. The third resolution authorized the drafting of lease agreements with Fred Schwaub and the school subject to final approval of the CIC — Bartlett was the lone dissenting vote on the matter.
CIC President Kraig Noble told The Evening Leader the master lease agreement would give the CIC control of the storefronts for up to 20 years.
The agreement would include a 10-year period with two five-year options — with all rental income flowing to the CIC. The St. Marys School Board recently expressed interest in renting one of the storefronts as an office for administrators.
“I think it’s basically three major storefronts that nothing would have happened to them unless we got involved,” Noble said after the meeting. “Hopefully once the school moves in and with two other tenants, that will attract other activity in the downtown.”
Noble said he is confident the CIC will be able to fill the vacancy without a prolonged search. In recent years there has been a revolving door of tenants in the storefronts.
“The biggest problem has been the lack of heating,” Noble said. “We are hoping that once these storefronts are brought up to code that they will be attractive places to rent.”
Noble revealed there was an estimate on the renovations but it involved more work than the CIC wanted to perform. Noble said the $150,000 limit set in the resolution would be sufficient.
“We are hoping it will be less than that,” Noble said. “Based on all the other bids that are happening on other projects around, we are confident it will be lower.”
Noble said the deal with Schwaub is not be exclusive. If another option presented itself, Noble said the CIC would look into it.
“We are not saying this is the only thing the CIC would ever do,” Noble said.
“We got an advantageous deal here with Mr. Schwaub. Essentially he is turning over control of those storefronts for a fairly minimal amount. I guess if some other landowner in St. Marys said ‘hey I want to do the same thing and for a fairly minimal amount and you can have control of the building for 20 years,’ we’d have to look at that.”
Legislation regarding the deal is expected to be presented to St. Marys City Councilors during their meeting at 7 p.m. Monday. The legislation is expected to be read three times.
CIC member Todd Fleagle said he, along with other county economic development officials, plan to ask Auglaize County commissioners if they would be willing to help fund an industry cluster analysis.
Fleagle said Burnside Analytics reviews the demographics of a population and provides details as to what types of industry a community should target.
“The economic development folks will meet with the commissioners within two weeks and they will explain the proposal,” Fleagle said. “It could be $11,000 if we do all three components. It should be a benefit — we think it’s a good concept.”
The next meeting of the St. Marys CIC is scheduled for 4:30 p.m. Feb. 2 at the city building located along East Spring Street.
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Last Updated ( Tuesday, 02 February 2010 )
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