The city’s efforts to purchase a former industrial property for its parks department have taken another step forward.
The Columbus City Council on Tuesday gave its final approval to provide $300,000 for the purchase of the former 3-acre site of Machinery Moving Inc. contingent on completion of appraisals and an environmental assessment of the property, city officials said.
The deal received initial approval from the Columbus Park Board in October and by the city council Nov. 6. With Tuesday’s 6-0 council vote, the final approval step for the purchase could come Dec. 13 when it is considered for a second and final time by the park board.
The property has two structures, one used as an office built around 1971 and the shop property, built around 1973, a total of about 9,000 square feet.
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It is owned by Norma Lienhoop, the aunt of Mayor Jim Lienhoop, who has recused himself from all matters surrounding the purchase.
One appraisal already received by the city lists the property’s value at $320,000, said Mary Ferdon, executive director of administration and community development, who is overseeing the process on the city’s behalf. A second appraisal is expected to be submitted soon, she said.
However, a second offer has been made on the property by another potential buyer that is higher than the $300,000 the city has offered, Ferdon said.
Criticism of deal
The property sale has drawn the attention of Ken Fudge, a Columbus resident who has questioned the legality and Lienhoop’s connection to the property.
Fudge has shared his concerns about the Machinery Moving land deal with parks board president Mark Levett, the Lienhoop administration and city council members.
In an email, Fudge wrote that he believed the parks board’s initial approval in October to allocate funds to purchase the property before the appraisals or environmental testing were completed was a violation of state law.
In the email, Fudge accused city officials of not being transparent about who the appraisers are or what company was doing the environmental assessment. Fudge had asked city parks director Mark Jones for that information.
Fudge wrote that he was told to make a public records request through the city clerk’s office for the information, which he has done. He is still awaiting the information.
Fudge said he also has concerns that the Machinery Moving property might be contaminated.
Fudge, who spoke Tuesday during the council meeting, questioned why Lienhoop wasn’t more open about his connection to the property since it is owned by his aunt.
“I don’t understand why he couldn’t have a full disclosure and told us what’s going on,” Fudge said.
Fudge also questioned why Lienhoop got up and recused himself, but City Attorney Alan Whitted told Fudge that was done at his advice.
“To avoid the appearance of impropriety, I asked him to leave the room,” Whitted said.
City Councilman Dascal Bunch also asked whether the city approached the seller or if the seller did so. Mark Jones, city parks and recreation director, responded and told the council that the seller had approached the city.
Business background
Machinery Moving Inc. was owned by Jim Lienhoop’s uncle, the late Donald Lienhoop. The business would pick up big equipment for large manufacturing companies, such as Cummins and Arvin, and move it to different factory sites, Jim Lienhoop said.
Donald Lienhoop eventually sold the company but kept the real estate, the mayor said. Norma Lienhoop became owner of the property after her husband’s death.
Before he became mayor, Jim Lienhoop — an accountant — stepped in to assist his aunt with her financial affairs as the company’s registered agent, he said.
“Every corporation needs to have a registered agent to receive official correspondence on behalf of the corporation,” Lienhoop said. “The registered agent has no decision-making powers and is not an employee or shareholder.”
Lienhoop is no longer the registered agent, though. According to Indiana Secretary of State business records, the registered agent is now Stan Gamso, the attorney for the Columbus Redevelopment Commission. The change occurred Monday, according to a filing for a change of registered agent.
The mayor said he has no financial stake in the corporation and would not receive any proceeds from the sale of the property.
Several months ago, the mayor said his aunt informed him that she wished to sell the property. Since it was adjacent to Columbus city parks property, she asked him whether the parks department might want to buy it.
“I told her I couldn’t have anything to do with the sale or purchase of the property and gave her Mark Jones’ number,” the mayor said. “I also contacted Mark Jones and said if you are interested in this property, here is my aunt’s phone number.”
Jones was interested in the property since it would be more convenient for storing mowers and other equipment than a building the department has been using in the Columbus Municipal AirPark, Ferdon said.
The request to allocate funding for the purchase was approved by the parks board in October and then was submitted to the Columbus City Council in early November, when it was approved on first reading. According to the ordinance, the city would pay the $300,000 over six years, with the parks department making the first $50,000 payment from its cash reserve fund.
The remaining $250,000 in payments would be made in $50,000 annual increments from city capital funds, council members said.
The property owner offered the payment option, which Jones said was better for the city because of its cash flow and cash reserves.
If the environmental assessment comes back with any issues, or if the owner decides to take the higher offer, the city would have to re-evaluate its interest, Ferdon and Jones said.
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The Columbus Park Board will consider the purchase of the 3-acre property during its Dec. 13 meeting at Columbus City Hall, 123 Washington St.
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