“I think there’s a good chance that it could be a new beginning,” he said. “I mean really a once-in-a-lifetime deal to get this done. Where can you walk in and have a baseline to start with of $15 million.”
The parties are still finalizing the details, but Dixon said he believes at least part of the county’s contribution will go toward demolishing the historic Manchester Inn to clear the way for a new mixed-use development.
CMC Properties was the lone developer to submit plans — nothing has been approved yet — for the site of the historic Manchester Inn and the adjacent Sonshine building. The 103-year-old former hotel has been vacant for years, and the developer proposes replacing it with a development similar to the Marcum and its sister project, Rossville Flats, in Hamilton. It is another CMC development that features market-rate apartments and retail space that opened in late 2023.
The Middletown project, called “The Manchester,” would have between 100 to 125 “market rate” apartments and 10,000-to-15,000-square feet of retail space. A proposed timeline for the development has construction starting in 2027 and finishing in 2028.
Middletown officials wouldn’t say too much about the new partnership, since the deal hasn’t yet been sealed. Community foundation officials did not return calls and emails.
“This is an exciting opportunity to help drive businesses and people into the heart of Middletown,” City Manager Ashley Combs said. “While the terms of this agreement are still being worked out, we’re hopeful this exciting project will help our city continue to rise up.”
Housing developments have not been high on the commissioners’ priority list because residential generates property tax, but no sales or income tax, and residents require more services.
They denied a request to create a community authority for a proposed $353 million mega housing development in Ross Twp. several years ago and have complained bitterly about all the apartments going in around Liberty Center.
The county and Liberty Twp. forged a complicated development deal with the original Liberty Center developer that included $49 million in taxpayer-backed bonds and loans.
Dixon told the Journal-News that Middletown is different — there are plenty of rentals in the city but nothing new and “market rate” that will bring people downtown.
“That’s the nucleus of the whole thing,” he said.
“It’s kind of like the chicken and the egg, you want people to come in and move downtown but to get them downtown you have to build apartments,” he said. “They’ve got plenty of apartments, they just don’t have the right kind of apartments in the right place. Put that with the retail, and one brings the other.”
The Butler County Finance Authority is also partnering in this venture, not with direct funding, but President and Chief Executive Officer Joshua Smith assisted the city with identifying a developer. He said if asked, the Middletown Port Authority — which is managed by BCFA — will provide typical port authority services such as capital leases, revolving loans and bond funding.
He said the $15 million investment is “critical” to the success of Middletown’s rebirth.
“Their investments will provide the catalyst needed to move downtown redevelopment efforts forward in a meaningful and accelerated way,” he said. “Without their leadership and willingness to invest, there is no realistic scenario in which this level of progress could be achieved on the current timeline.”
The commissioners haven’t voted on the contribution yet, but Commissioner T.C. Rogers told the Journal-News he supports the investment because of the entire master plan for the area.
“The proposal by the developer looks good,” he said. “The activity is on the way and they’re doing the skating park across the street, so I think from all the talk over the last few years it’s being put together in a well-thought-out manner.”
This isn’t the first time the county has invested in Middletown redevelopment. When the county was awarded nearly $75 million in federal pandemic relief, it decided to share the windfall countywide.
The commissioners gave the city $3 million to demolish and complete cleanup of the old Middletown Paperboard site.
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