MEETING
What: Middletown City Council business meeting
When: 5:30 p.m. Tuesday, Aug. 5
Where: Lower Level of the Middletown City Building, One Donham Plaza
Info: www.cityofmiddletown.org
The deal to sell the Bank One building is set to be consummated Tuesday night, nearly five months after City Council delayed the sale after a local developer was told the downtown building wasn’t for sale.
City Council will consider legislation to sell the building at 2 S. Main St. for $140,000 to Windamere LLC, a group led by local artist and businessman Chris Walden, according to city documents. The city was ready to sell the building for $135,000 in April to Walden’s group. Windamere LLC will be involved with the event management company Toast of the Town LLC — which council legislation in April designated this company as the buyer.
The use of the building will be consistent with the arts and education focus of downtown Middletown, according to a city staff report. The group is proposing to use the building as a gallery and to host small events. The Journal-News could not reach Walden for comment before press deadline.
Local developer and property owner Mike Robinette did not make an offer this time, despite raising objections in April.
Robinette inquired to city staff about buying the building, which he was told was not for sale. After he learned of the prospective sale, he made two offers. City Council tabled the vote on the sale and the process was opened to accept bids.
Robinette, however, did not make a bid this time, though previously made bids at $185,000 and $202,500 for the building.
“I think it was pretty clear they have a preference to sell it to Chris Walden and his group, and we decided to not to pursue it any further,” he said.
Robinette said it is his group’s desire to wish whoever is in that building “to be successful and bring additional people downtown.” Robinette is involved in the investment groups that own the former Goetz Tower and the Rose Furniture building.
The Bank One building has been appraised at $300,000, but city records indicate the building was previously appraised by the Butler County Auditor’s office at $137,980. The auditor’s office does not have a record that it was appraised for that amount.
“My recollection is that it was the auditor’s value listed on their page at the time of purchase,” said City Manager Doug Adkins. “Since then, it has been wiped out because it is owned by a municipality and tax exempt.”
The bid would recover all taxpayer funds used to purchase and maintain four buildings acquired to entice Cincinnati State to locate a branch campus in the city.
The city paid $275,000 in December 2010 to purchase the Bank One Building along with CG&E, First National Bank and Masonic Temple buildings. The CG&E building was sold to Higher Education Partners for $202,000 and is the current campus of Cincinnati State Middletown. The city donated the First National Bank to the technical and community college. The Masonic Temple was donated to the Art Central Foundation.
The tentative Bank One building sale would mean the city would no longer have title to the former Thatcher buildings and would make $67,000 off its investment without accounting the costs of maintaining the buildings.
But the city will still be at a loss as it sold the former Manchester Inn and Sonshine building for $1 to William Grau. The city purchased the building at $175,000 from the Thatcher estate and listed the price at $325,000. City officials told the Journal-News in April, however, a redeveloped Manchester Inn could be a "shot in the arm" for the city.
The leased space in the Bank One building will be honored, according to the legislation. The city leases space to Miami University Middletown for $5,667 a month and the Middletown Historical Society for $100 a month.
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