A newly formed non-profit corporation tasked to manage the purchase, development and operation of the FairOaks Mall for its new owners has established its bylaws and elected officers for the panel.
The Fair Oaks Community Development Corp., with eight board directors from the city and Columbus Regional Health, met Thursday at Columbus City Hall during its organizational meeting.
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.
The board of directors elected Mayor Jim Lienhoop as president; Brad Davis, chief credit officer with Centra Credit Union, as treasurer; and Karen Niverson, executive director of the Columbus Area Visitors Center, as secretary during Thursday’s meeting.
The bylaws passed by the corporation establish who the group is, what it does, its functions and terms. The corporation will be subject to the state’s Open Door and Open Meeting laws, City Attorney Alan Whitted said.
Former Mayor Kristen Brown, who was in attendance, asked who would own the mall if it is purchased. If the transaction is completed, the corporation would have ownership of the property, Whitted told Brown, adding that there is nothing that prohibits a city from owning the property.
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.
The corporation also voted to ratify articles of incorporation and approved an application seeking tax-exempt status with the Internal Revenue Service.
The articles of incorporation will be reviewed favorably by the IRS when it looks at the tax-exempt status application, Whitted said. That would also allow donations to be accepted by the entity, he said.
Two subcommittees — finance and facilities — were established as a property manager will likely be needed to oversee the facility, said Mary Ferdon, executive of administration and community development with the city, who also serves on the corporation board.
The corporation discussed establishing a meeting schedule, but Lienhoop said the board of directors would meet on an as-needed basis. The Columbus City Council will be asked to appropriate its portion of the money for the transaction during the Nov. 5 council meeting, Lienhoop said earlier this week.
The purchase of the mall property is on track to be completed by the middle of December, he said.
