Fallsnewspress.com - Property sale contract calls for new road, on-street parking

by Steve Wiandt

Reporter

Cuyahoga Falls -- Currently being held in committee by City Council, the contract to sell the property that was once a shopping plaza includes plans to build a new roadway parallel to State Road and put in on-street parking along Portage Trail.

The agreement between the city and Portage Crossing LLC lays out the terms of the sale of city-owned land, the former State Road Shopping Center property, for private redevelopment. Copies of the 26-page document are available at the city's Community Development Department in the municipal building, 2310 Second St. The department can be reached at 330-971-8142.

Portage Crossing LLC is a limited liability company controlled by Stark Enterprises, of which Robert L. Stark is president and CEO. Stark is going to call his new retail development Portage Crossing. It will be located at Portage Trail and State Road.

The sale and redevelopment agreement has not yet been approved by City Council. The pact was discussed Jan. 19 and will be reviewed further during the next Council committee meeting Feb. 1 beginning at 6:30 p.m. at the Natatorium, 2345 Fourth St.

Agreement with schools discussed

A tax increment financing agreement, which will require approval from City Council and the School Board, will enable the city to divide real estate taxes generated by the project 75-25 with the Cuyahoga Falls City School District, said Susan Truby, the city's community development director. The city's 75 percent share, or approximately $737,682 annually, would be used to repay the land purchase debt of $10.6 million within the 30-year term of the TIF, she said.

The School District's 25 percent share would generate $171,563 per year, she said. Before the city purchased the State Road Shopping Center property, the School District received $69,854 in annual property taxes, Truby said.

Contract details

Although Stark has said he wants to complete Portage Crossing in one phase, the contract lays out a plan for two. The contract says the property for phase one of the project is estimated at 16.79 acres, and Stark would pay $150,000 per acre for the property, excluding the site of the former BP Oil station. Overall cost is $2.518 million. The city will retain parts of the property that are needed for public improvements.

The purchase of the BP station at State Road and Portage Trail is included in the contract. Truby said the city will pay half of the cost and Stark will pay the other half. She said the city's portion is $442,000.

The contract says the phase two property is estimated at 8.5 acres and Stark would pay about $150,000 per acre conveyed. That amount would increase by 2 percent each 12-month period.

"If the project is phased, obviously Phase I will be purchased first at the stated value," Truby said. "If the Phase II portion takes longer to acquire, then the city wants to realize an increased value of that sale. Therefore, we are increasing the sale price for 2 percent each year."

Stark said he plans to complete the project in one phase. The contract states that Portage Crossing LLC shall create as part of Phase I Private Improvements "a neighborhood marketplace that is walkable, unique and community focused ... [they] shall include retail space with related parking on both sides of the property along Portage Trail and at least one large retail store such as a grocery store, a drug store, family restaurants and other neighborhood retail uses."

The contract states that the following uses will not be allowed on the property: ;truck stops, car washes, car dealerships, mobile home dealerships, adult bookstores, funeral parlors, drug paraphernalia stores, flea markets, close-out stores, billiard parlors ("except as part of a first-class entertainment venue"), gambling operations, massage parlors, pawn shops and check-cashing stores.

Public improvements the city would be required to do include construction of a landscaped median strip in State Road from Schiller Avenue to Graham Road, including all work required in and around intersections and all associated lighting and landscaping.

Also included is construction of on-street parking and on pedestrian improvements on Portage Trail from State Road south approximately 800 feet, and construction of a new roadway running parallel to State Road to provide access within phase one property, including connection from State Road both north and south of Portage Trail.

Curb cuts and aprons between public streets and parking areas are also included. Developer improvements listed in the contract include the construction of 279,000 square feet of retail structures, as well as construction of new parking and all associated infrastructure, including drainage, utilities, lighting, landscaping, paving and striping.

E-mail: swiandt@recordpub.com

Phone: 330-688-0088 ext. 3141