“We’re not indigent, we’re not in foreclosure, we don’t have to sell it, but the potential of adding about $1.8 million into the township’s general fund, what we’re looking at now is when it sells, how else can we use that money to benefit the township,” he said, adding the Activity Center is a “non-performing asset” and it could cost $100,000 to $130,000 to fix existing problems in the short-term.
Trustees Ann Becker and Lee Wong could not be reached for comment.
Kroger wants to build a giant new marketplace at Tylersville and Cox roads and has offered to pay West Chester Twp. $1.8 million for the senior center property there, but the sale could leave seniors and others without programming.
West Chester Plaza owner Regency Centers was the only group to submit a proposal for the West Chester Activity Center. The activity center acquisition would allow for a new 95,545-square-foot Kroger, and the grocery giant and retail center owners have even bigger plans to build a 117,166-square-foot Marketplace.
The Regency proposal indicates that to build the Marketplace, Kroger would also need to purchase the Providence Bible Fellowship church and property from Chesterwood Village. Ryan Ertel with Regency Centers in his letter to the trustees that accompanied the original proposal, said redeveloping the 30-year-old store site would triple property values and increase the tax bill from $169,000 to more than $500,000 annually and double the plaza footprint to about 20 acres.
“It’s our unpretentious desire to upgrade this shopping center to a first-class retail destination so as to preserve Kroger’s presence at this location, enrich one of West Chester’s most discernible intersections, and afford our community with a new Kroger store and a fresh retail shopping experience — all while adding significant value to the tax base,” Ertel wrote.
Here are some of the concessions Regency Centers made at the township’s request:
• $50,000 in earnest money, up from a $15,000 deposit in the original offer
• The due diligence period was reduced from 18 months to 180 days, but two 90-day extensions can be requested at a cost of $50,000 each and those are potentially non-refundable under the terms of the deal
• Conditions were clarified on the right to terminate if Regency can’t secure the church property and a parcel from Chesterwood Village
It states if they are unable to secure the church property within 90 days, they can terminate the agreement with the township but the Chesterwood Village property — that is owned by Hillandale Family Communities, a senior care company with senior living and health care locations throughout the county — is not a deal breaker. After 90 days the agreement can’t be terminated, unless something adverse is discovered during the due diligence period, there is an issue with zoning or Kroger won’t sign a lease.
A church official confirmed they “have a team of guys that are working on that” but would not comment further.
Butler County Commissioner Don Dixon, whose family owns Chesterwood Village, said they have had talks with Regency.
“We’ve been in preliminary discussions with them, there’s nothing figured out for sure,” Dixon said. “From us they probably need a couple acres more or less, and the church is about five acres to make it all move around and fit.”
The sale was initiated by the end of the lease with Community First Solutions this December. The non-profit has been running the senior programming and other activities in the building for years.
Township Administrator Larry Burks told the group he met with the non-profit before the holidays and was told it would not be renewing the lease with the township when it expires in December. Danielle Webb, Vice President of Marketing & Community Relations with Community First, previously said her organization will continue to provide the programming as long as it is needed for the remainder of the year.
A group of seniors came to the township imploring the trustees to save their programming in January, and a solution was in the works, but the potential sale of the building would end that option.
MORE: West Chester activity center sale: What does it mean for those seniors?
Talks had been going on with Hillandale to incorporate the senior programming into their expanded Chesterwood Village location on Tylersville Road. Dixon told the Journal-News previously they would have needed the existing building for that deal to work.
If the Kroger deal is sealed the programming at the activity center will need to be relocated, and Welch said the township is trying to find alternatives. One idea is possibly using the Muhlhauser Barn for the program.
“One of the suggestions that I brought forward was well, you know what we’ve got the Muhlhauser Barn,” he said. “It doesn’t have air conditioning in it at this point, but from the proceeds of this we might be able to outfit the Muhlhauser Barn, but that was just an idea that was floated.”
The township would also need to find another non-profit to run the programming, Welch said the YMCA might be an option to explore.
“We are interested in doing whatever we can within reason,” Welch said. “We’re trying to find a solution that makes sense for all interested parties without spending a ton of money.”
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