HomeMy WebLinkAbout05-15-2000 Meeting
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REAL ESTATE
MEETING
COMMITTEE ROOM - May 15, 2001
PRESENT: Hons. Bob Young, Mayor; Cheek, Beard, Kublke, Shepard, Bridges,
J. Brigham, Colclough and H. Brigham, Co=issioners; Jim Wall, Attorney; Walter
Hornsby, Deputy Administrator; Lena Bonner, Clerk ofCo=ission.
ABSENT: Hons. Mays and Williams, Co=issioners.
Mr. Mayor: We've had sOme extensive discussions with Standard Textiles in
Cincinnati about acquiring the King Mill. Their president told me this morning that they
intended to file with GE Capital a proposal today to purchase the assets. They do not
want the property and there are some issues involving an existing inert landfill that they
don't want to deal with. EPD has been here, looked at it previously and said the landfill
is not an issue.
Mr. Wall: They don't really consider it an inert landfill. There is some grass and
vegetation there but it isn't an issue.
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Mr. Mayor: GE Capital has put no value on the building and the land so there is
no consideration involved in acquiring it. We've worked with the Canal Authority and
this morning they agreed to accept title to the property and lease it back to Standard
Textiles which would pay rent for the use of it and for the water used. Standard says if
their offer is accepted by GE Capital, they can have production started within 72 hours
and put most of these people back to work fairly quickly. It is their intention to grow the
project there, develop new markets, increase production and increase their sales. So the
current intention is for the Canal Authority to acquire the property and I wanted you to
know about it up front. .
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Mr. Wall: My real estate matter involves the Widows Horne on Greene Street
between 2nd and 151 Streets. When the property was deeded to the Widows Home in the
1870's, there was a reversionary interest so that at such time as it ceased to be used as a
widows horne, the title to the property would revert to the City. They currently have
about nine residents in there and I have met with the Board at their request. They would
like to get out of the active management of any type of charitable organization and would
like to market the property, take the proceeds from that sale and use it for other charitable
purposes. They have asked to buy the reversionary interest so that they would own fee
simple title to the property and would then be in a position to dispose of the property if
they chose to do so, market it and then use the proceeds to continue their charitable work.
I asked Sonny Reece to look at valuing the reversionary interest. From an income
approach he says the best use of the property is probably for a boarding house. If you use
a 9% discount rate using the value then on a ten-year basis, you're looking at roughly
$140,000, over 20 years you're looking at roughly $60,000. So $100,000 is halfway in
between and I think they would be willing to buy the reversionary interest for somewhere
in the $80,000 to $100,000 range. That would give them fee simple title to the property
and they would be in a position to continue to operate the home or close the home and
sell it and use the proceeds for sOme other charitable purpose. The property is in bad
shape and it will need funding for upgrading. It is zoned for residential multi-family use.
It is probably worth about $435,000 according to Sonny, but has in excess of $100,000
needed for repairs. They are at the point where they need to renovate it or close it down
and if they do close it, then it would revert to the City as the owner. You don't have to
take any action just yet, but I wanted you to think about it and then consider deciding
what you want to do.
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ADJOURNMENT: There being no further business, the meeting was adjourned.
Lena 1. Bonner
Clerk of Co=ission
NWM
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