City officials have given final approval to appropriating more than $4 million for the purchase of the FairOaks Mall in a transaction scheduled to close in December.
The Columbus City Council on Tuesday voted 6-0 to pass a final reading of an ordinance appropriating $2.25 million in Economic Development Income Tax (EDIT) funds toward the purchase amount, $1,337,500 from the city’s general fund and up to another $200,000 in EDIT funds for due-diligence costs, estimated closing costs and necessary capital reserves.
The council also passed a separate ordinance appropriating $500,000 from the Columbus Parks and Recreation Department’s general fund reserves that will be used for the purchase of the mall.
In August, the city announced plans to purchase the 35-acre mall property at 2380 25th St. from FairOaks Mall Owner LLC for $5.9 million, with plans to covert the mall into a community recreational and sports tourism complex. The transaction is being made through a partnership with Columbus Regional Hospital and a grant from the Heritage Fund — The Community Foundation of Bartholomew County.
The funding approved by the council will be placed into the bank account of the FairOaks Community Development Corp., a non-profit entity that will oversee the mall.
The city’s share — $4,087,500 — reflects 75 percent of the property’s $5.45 million appraised value, while the hospital will pay $1,362,500, the remainder of the appraised value. The Heritage Fund will also provide $450,000 that reflects the difference between the agreed-upon selling price and the appraised value, according to the city.
The mall transaction is still on track to close on Dec. 14, said Jamie Brinegar, city finance director.
“Environmental inspections have come in with no complications,” Brinegar told the council.
Columbus resident Ken Fudge asked Mayor Jim Lienhoop about deferred maintenance on the mall, saying he has submitted several public information requests seeking information. Fudge said he recently drove in the mall parking lot and noted its condition wasn’t in good shape.
“I’m saying probably in a year or two, you’re going to have to do the parking lot,” Fudge said.
He also asked Lienhoop how the city could guarantee it would follow bidding laws for any improvements that need to be made. Lienhoop told Fudge that all discussions will be made public.
Fudge also asked whether public bidding laws would be followed.
“We’ll follow the laws that we’re required to follow,” Lienhoop said.
City Councilman Tom Dell said the FairOaks project is an opportunity for the city to take advantage of while bringing one of its largest parks nearby into play.
“I think it will be something the city will be proud of,” Dell said.
He also said the redeveloped mall could propel Columbus and make it attractive for people to come live in the community.
“It looked like an opportunity we couldn’t just pass up,” Dell said.
Lienhoop said once the mall is purchased, the city will continue to manage the mall as it is currently. The city will also have to hire a consultant to develop an overall master plan for the mall, which will be one of the priorities in 2019.
“We’ll have to think through how we transition activities from the Donner Center to the FairOaks site,” Lienhoop said.
Input will also be sought from the public to determine what they would like to see at the FairOaks Mall, he added.
“I think it will be a busy year,” Lienhoop said.
Other council business:
The council gave final approval of an ordinance appropriating $251,463 from the city’s substance abuse non-reverting fund for its share establishing a hub to be overseen by the Alliance for Substance Abuse Progress. That amount reflects half of the cost for 2018 and 2019, while Bartholomew County is picking up the other half of funding for ASAP and the hub.
The hub will be located in the former United Way office in the Doug Otto Center and will be a centralized location where individuals seeking treatment will be able to find referrals and other assistance, said Jeff Jones, executive lead of ASAP, in an earlier interview.
Council members also approved the final reading of an ordinance establishing the base salary of first-class patrolmen and first-class firefighters and maximum longevity pay for 20 years for those positions.
Police Chief Jon Rohde said the changes will allow individuals to go from the midpoint to the maximum pay level under the city’s salary ordinance once they reach 20 years of service with the city. The ordinance also increases longevity pay each year and provides a way for individuals to get from the midpoint to the maximum level, Rohde said.
The changes, which replaced a 1990 ordinance, maintain retirement pay parity for police and fire personnel, Rohde said.
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The city’s efforts to purchase a former industrial property for its parks department have taken another step forward. Page A5
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