Members of the FairOaks Community Development Corp. board finalized details for property management, accounting and legal services in preparation for Friday’s planned purchase of FairOaks Mall.
During a Wednesday meeting at Columbus City Hall, board members agreed to a six-month contract with Veritas Realty of Indianapolis, extending its agreement to operate the mall. Veritas will continue as property managers through June 30, with an option to renew for the remainder of next year.
When the community development corporation becomes the mall’s new owner Friday, it will pay Veritas $7,900 a month plus employee expenses for mall operations, said Dave Lenart, Columbus Regional Health director of facilities and materials management, who is serving on the FairOaks project facilities committee.
The city has appropriated $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 city has also approved appropriating $500,000 from the Columbus Parks and Recreation Department’s general fund reserves that will be used for the purchase.
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 25 percent remainder of the appraised value. The Heritage Fund will also provide a one-time grant of $450,000 that reflects the difference between the agreed-upon selling price and the appraised value, according to the city.
The city, hospital system and Heritage Fund partnered to purchase the 35-acre mall property at 2380 25th St. from FairOaks Mall Owner LLC for $5.9 million.
The mall, which opened in 1990, consists of one regional mall building and a storage building, surrounded by parking areas. The mall portion has 56 retail/restaurant/office spaces available in total, according to the mall appraisals.
Current rental income from the mall tenants is about $85,000 a month, board members reported during the meeting. The mall has about 400,000 square feet under roof with 15 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 partners, working through the nonprofit development corporation, are planning to transform the mall into a year-round community recreational and sports tourism complex.
For at least the next three years, retail businesses operating in the mall — which opened in 1990 — will have an opportunity to be part of the transformation, Columbus Mayor Jim Lienhoop said in an earlier interview. All existing tenant leases will be honored, he said.
The property could include an indoor recreation center within the mall and an air-supported domed facility developed onthe site outdoors to house indoor softball, soccer, volleyball and other sports, creating a year-round community recreational asset and sports tourism magnet.
The city hopes to move its parks and recreation department offices from the deteriorating Donner Center to the new mall site as part of the project.
The board hired Columbus attorney Scott Andrews as its legal counsel and Kemper CPA Group LLC for accounting services.
Board members also approved a Cincinnati Insurance Co. policy through Johnson-Witkemper Insurance Services in Columbus to insure the mall property for $20 million, with a $10,000 liability deductible. The insurance policy will cost $56,918 a year and includes $1 million coverage for actions of directors and officers of the nonprofit.
Tom Brosey, a retired Cummins Inc. executive hired by the city to assist with the transaction and plans for the mall property, said he will be meeting with Veritas officials next week to go over the Veritas budget for 2019, as the development corporation board will have some input into that budgeting process as the new owners.
After the board completed all its purchase documentation, Mary Ferdon, Columbus executive director of administration and community development, asked board members to consider becoming part of, or chairing, the development corporation’s design and plan committee, which will be formed after the purchase closes Friday.
“This is the fun stuff,” Ferdon said of being part of the planning for a new space for indoor recreation and parks programming.
“And anyone who would like to step forward as a chair, that would be great,” Ferdon said, looking directly at Mark Levett, a retired Cummins executive who now serves as president of the Columbus Parks Board, which Levett acknowleged with a smile.
Members of the committee, to be selected later, will be tasked with organizing public-input sessions about the project, she said.
Lienhoop said it is likely the board will have a meeting to tour the mall facility in January, to see some of the spaces on the property which do not have public access. The mayor said future meetings of the board will be held at the FairOaks Mall rather than at City Hall.
At some point next year, the development corporation will be sending out a request for proposals for design of the facility, followed by public input and feedback, the mayor said.
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A list of active businesses in FairOaks Mall:
Bath & Body Works
BoRics
Carlos Pizza
Creative Threads
Cummins Inc.
Dunham’s Sports
Fun Times arcade
Harlequin Theatre
Mark Pi’s China Gate
Music & More
Nirvana (2 spaces)
Payless Shoes
Percenell Touch (kiosk)
Riviera Maya
Silky Nails
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