City officials are taking their first steps to create a governance structure to transform FairOaks Mall into a year-round indoor recreational and sports tourism complex.
During Tuesday’s Columbus City Council meeting, council members will be asked to ratify the filing of articles of incorporation for the FairOaks Community Development Corp. Board, which will oversee the project, Columbus Mayor Jim Lienhoop said.
The community development corporation is being set up as a tax-exempt 501(c)(3) not-for-profit entity, a collaboration between the city and Columbus Regional Health, which is partnering on the project. The not-for-profit status will allow the entity to accept grants and fund-raising donations, something Lienhoop anticipates will be necessary as the city and hospital system wade into the purchase of the property and its redevelopment.
The city announced at the end of August it intended to purchase the 35.36-acre mall property at 25th and Central Ave for $5.9 million through a partnership with the hospital system and a grant from the Heritage Fund — The Community Foundation of Bartholomew County.
The purchase is expected to be completed by the end of the year, with the city paying $4,087,500 and the hospital paying $1,362,500, city officials said. The Heritage Fund is providing a $450,000 grant, which reflects the difference between the mall’s selling price and its appraised value.
The city is prevented by state statute from paying more than the appraised value, Lienhoop said.
The city’s share of the purchase price is being paid through a combination of city funds, including Economic Development Income Tax revenues, city parks and recreation department funds and Rainy Day fund money, city officials said. The Columbus Parks Board will soon be considering a $500,000 appropriation for the project, which will need to also be approved by the city council, to be considered possibly in early November, Lienhoop said.
The property could include an indoor recreation center within the mall and an air-supported domed facility developed elsewhere on the property to house indoor softball, soccer, volleyball and other sports, creating a year-round community recreational asset and sports tourism magnet.
The mall has about 400,000 square feet under roof with 18 tenants, including anchor Dunham Sports, several restaurants, Bath & Body Works and Payless Shoes, as well as non-retail tenants such as Cummins Inc. and a community theater.
The first meeting of the governing board for the not-for-profit has been set for 9 a.m. Thursday in Conference Room 3 at Columbus City Hall. Lienhoop said the board will follow all meeting notifications and open meeting law requirements under Indiana’s Open Door Law.
The city is continuing to work on bylaws for the not-for-profit and its governing board that will provide structure to its operation, the mayor said.
The purchase of the mall property remains on track, with the hospital system taking the lead in the due diligence required to evaluate the structural and environmental condition of the property, he said. The date to finalize the purchase of the mall has not yet been set.
In September, the city hired Tom Brosey, a retired Cummins Inc. employee, to guide city officials on the purchase of the property and future plans. Under terms of an agreement that runs through December 2019, Brosey will receive $55 per hour for up to 100 hours a month, city officials said.
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- Letter of intent, completed
- Formal offer to owner which meets Indiana Code legal requirements, subject to Columbus City Council and Columbus, accepted
- Regional Health Board of Trustees approval
- Resolution by Columbus City Council authorizing purchase, pursuant to terms of the purchase agreement.
- Purchase agreement approval by Columbus Board of Public Works and Safety
- Resolution by Columbus Parks Board for any funds appropriated from the Parks Reserve Fund
- Approval of city ordinances appropriating city funds for purchase, in readings from two consecutive City Council meetings.
- Joint Venture/Partnership agreement approved by the Board of Public Works and Safety
- Other governmental body approval as determined to be necessary
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FairOaks Mall is zoned CR, commercial regional, which includes large retail and hospitals. The various proposed uses are either permitted or conditional in the CR zoning district.
For example, a community center is a permitted use, but an athletic complex and a conference center are conditional uses. Conditional uses are subject to the case-by-case approval of the Columbus Board of Zoning Appeals.
Current owner of the mall is New FairOaks Mall Owner LLC. The deal with the city was agreed to by a key company executive, Yeheskel Frankel of Lakewood, N.J. Frankel’s group bought the mall — which was in foreclosure — in January 2014 for $550,000, a fraction of the assessed value at the time. The city is partnering with Columbus Regional Health to purchase the mall for $5.9 million.
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What: Columbus City Council meeting
When: 6 p.m. Tuesday
Where: Council chambers, Columbus City Hall, 123 Washington St.
For more information: columbus.in.gov
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