by Steve Wiandt
Reporter
Cuyahoga Falls -- Work continues to complete the first step in the State Road Shopping Center redevelopment project.
During City Council's regular meeting April 18, Law Director Virgil Arrington said the city is still in the process of negotiating with 16 to 18 tenants that remain in the State Road Shopping Center. "Hopefully in the next week or two" Council will vote on related legislation, he said, adding he wants to be sure "every duck is lined up" before an agreement is signed.
Two ordinances are being held up by negotiations. One authorizes a settlement between the city and State Road Associates, the owner of the plaza. The city had filed last October to acquire the property at State Road and Portage Trail by eminent domain. State Road Associates filed suit to block that action.
The other ordinance would allow the city to issue notes not to exceed $11 million to cover the proposed $10.2 million purchase price plus additional costs connected with the acquisition of the property. City officials have been working with eight outlying businesses that will be carved out of the plaza property and will remain in operation independent of new redevelopment.
Arrington said tenants who remain inside the plaza property can remain open until the end of the year, and can continue leasing from the city on a monthly basis in 2009 until demolition begins. He said the city will help tenants relocate their businesses between now and then.
Susan Truby, community development director, said a nationwide search for a buyer and developer of the property will begin as soon as the city closes on the property, which is scheduled for July 1. Truby said she wasn't sure if the city would break even on the deal, and might or might not, and Windsor Street resident Bill Rhines questioned if the risk was worth it.
"If you were spending your money, would you go in losing money?" asked Rhines.
"It depends on how much I would gain in the long term," said Truby. "If the city is going to turn around and gain thousands of new jobs, if we're going to have property at a higher face value ... You have to look at more than present day when you make an investment of this type."
"You've got to look at the big picture," said Mayor Don Robart. "You can't look at what you buy it for and what you sell it for.
"If we thought [State Road plaza] was going to be a loss we wouldn't do it."
Rhines said when the city spent $1 million to buy and raze the Tally Hotel at State Road and Chestnut Street, it sold it for a loss of $800,000. Councilmember Don Walters (D-6) said that property was an area of high crime and could still be vacant today if the city had not taken action. He said on paper the property was sold at a loss, but the area was redeveloped and improved.
"It's our money that you're spending, and you don't have a project coming in," said Rhines. "I don't think it's right."
Councilmember Mary Ellen Pike (R-2) said the return on the city's investment in the Tally Hotel property was the increase in the value of the homes in the area and the fact that people were no longer afraid to walk there.
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