The newly appointed Fair Oaks Community Development Corp. will hold its first meeting at 9 a.m. today to elect officers and approve operating bylaws to guide its operation.
The city announced in late August that it planned to purchase the 35-acre mall property at 25th Street and Central Avenue from New FairOaks Mall Owner LLC for $5.9 million through a partnership with Columbus Regional Hospital and a grant from the Heritage Fund — The Community Foundation of Bartholomew County. The city plans to turn the mall into a community recreational and sports tourism complex, with the Columbus Parks and Recreation Department a likely tenant.
Responsibilities of the not-for-profit corporation’s eight-member board of directors, made up of representatives from the city and Columbus Regional Hospital, will include managing communications with the seller of the FairOaks Mall and existing tenants, said Mary Ferdon, executive director of administration and community development with the city.
A resolution approved unanimously Tuesday by the Columbus City Council said the corporation would manage the purchase, development and operation of the real estate for its owners. The city council ratified and confirmed the Oct. 4 incorporation of the not-for-profit organization, along with its appointed board of directors.
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Three are appointees of the mayor:
Mayor Jim Lienhoop
Ferdon, executive director of administration and community development
Brad Davis, chief credit officer with Centra Credit Union
Two are appointees of the council:
Tim Shuffett, Columbus City councilman
Karen Niverson, executive director of the Columbus Area Visitors Center
Two are appointees of Columbus Regional Hospital:
Jim Bickel, CEO of Columbus Regional Health
Dave Lenart, director of facilities at Columbus Regional Health
The eighth director is the person who serves as president of the Columbus Parks Board:
Mark Levett
The city will pay $4,087,500, or 75 percent of the property’s $5.45 million appraised value, while the hospital will pay $1,362,500, which represents 25 percent of the appraised value.
The Heritage Fund has also committed to providing $450,000, which reflects the difference between the agreed-upon selling price and the appraised value, according to the city. Lienhoop said the council will be asked to appropriate its portion of the money during its Nov. 5 meeting, with a final vote scheduled for Nov. 20.
Purchase of the mall property is on track to close by the middle of December, Lienhoop said.
The mall has about 400,000 square feet under roof, with 18 tenants including anchor retailer Dunham’s Sports, smaller retailers, restaurants and non-retail tenants such as Cummins Inc. Current tenants that wish to continue operating there for at least the next three years under terms of their leases will be allowed to do so, Lienhoop has said.
The mall has been gradually seeing its number of tenants decrease, including the loss of anchors J.C. Penney in late July 2017 and Carson’s in late April of this year.
Incorporation
City Attorney Alan Whitted created the not-for-profit organization with the Indiana Secretary of State’s Office.
According to incorporation documents, the Fair Oaks Community Development Corp. would be organized and operated exclusively to benefit, perform and carry out the charitable, educational and other public purposes of the City of Columbus.
The entity will be subject to the state’s Open Door and Open Records laws, he said.
Its not-for-profit status will allow the entity to accept grants and fundraising donations, which Lienhoop said earlier would likely be necessary.
Columbus resident Ken Fudge spoke to the council about the pending FairOaks Mall transaction, questioning how the hospital will use the building and what the maintenance costs will be.
“You don’t even know what you’re doing with it,” Fudge said.
Lienhoop told Fudge that the city is still working on obtaining overall maintenance costs for the facility.
Other action
The council unanimously approved a 10-year tax abatement for NTN Driveshaft for a $90 million expansion the company plans to make in the Woodside Industrial Park. The expansion at the facility, 8251 S. International Drive, will add equipment and bring up to 100 new jobs within the next five years.
The company was granted an $8 million tax abatement for the expansion and an $82 million tax abatement for new equipment. The abatements will result in tax savings to the company of $3,139,184 over a 10-year period on its $90 million investment.
Council members also on Tuesday gave unanimous approval to its 2019 budget of nearly $61 million.
Jamie Brinegar, city finance director, told the council that the city has planned $9.9 million in capital projects next year. Of that amount, $4.9 million is dedicated for capital road improvements, while $1.4 million will be for public safety capital needs.
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Columbus City Council will be asked to appropriate $4,087,500, representing the city’s share of the planned purchase of FairOaks Mall, during its 6 p.m. Nov. 5 meeting at City Hall, 123 Washington St.
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