Friday, July 19, 2013

THE CATALANO'S DEVELOPMENT AGREEMENT, CONTINUED

This week's Sun Messenger published 2 items relating to the city's proposed development agreement with developer Lance Osborne concerning the Catalano's grocery store property.

Before putting the GetGo rezoning issue on the ballot last year, Osborne split the Catalano's grocery store property into 2 separate real estate parcels---a back parcel where the grocery store building sits and a front  parcel, a large area parallel and adjacent to Wilson Mills Road.
While he will buy both parcels from Giant Eagle, Osborne's actual redevelopment commitment, as laid out in the development agreement, pertains only to the back parcel.

In his story reporter Jeff Piorkowski quotes several Council members who indicate that the redevelopment Project won't include a gas station.
Unfortunately the development agreement doesn't reflect those claims.

 
The development agreement doesn't  include any rezoning restrictions or otherwise explicitly limit Osborne's ability to put a rezoning issue on the ballot.
This is the full extent of Osborne's redevelopment commitment under the July 9th version of the development agreement:

"The Company (Osborne's Brainard Crossing Holdings LLC) agrees that the Project shall consist of rehabilitating the existing (grocery store) structure, including by constructing a new facade and a new roof, and by making tenant parking and landscaping improvements....The Project may also include construction of an additional freestanding commercial structure on the Property..."
That's it.
"May" does not mean "must" or "shall."
"Freestanding commercial structure" could mean anything---including a gas station and convenience store/cafe.

As the agreement stands now, Osborne could legally pocket $800,000 in public economic development assistance, renovate the grocery store building, and then turn around and put another issue on the ballot seeking to either expand the use or change the current zoning for the front parcel.

Council should know that. Shame on them if they don't.

http://www.cleveland.com/hillcrest/index.ssf/2013/07/vote_is_expected_july_23_on_ap.html#incart_river


As a counterpoint to Piokowski's story, here is a Letter to the Editor that I submitted, which was also published in the Sun Messenger this week.



On July 9th Highland Heights Council heard a first reading of a resolution authorizing Mayor Scott Coleman to enter into a development agreement with Lance Osborne (dba Brainard Crossings Holdings LLC) involving the former Catalano’s grocery store property. While that’s generally good news for residents, I’m concerned about the city’s apparent rush to get the deal done.
Council received a copy of the proposed development agreement during Tuesday’s Council meeting and what they saw was only “95 to 98%” complete according to Law Director Tim Paluf.  Nevertheless, President Cathy Murphy indicated that Council would be asked to suspend the normally required third reading and vote on the resolution at the next (July 23rd) Council meeting.

Why the hurry?  Council usually takes an August recess and developer Osborne is anxious to get started (although as of the 9th he still hadn’t locked in the key tenant, reportedly a local non-retail business).
The mayor and Council did not discuss informing residents of the development plan. Given the significant amount of public money involved ($800,000 in economic development assistance) residents deserve to be told all of the pertinent details, and in a timely manner.
There’s a lot to discuss.
For example, the current development agreement doesn’t include any rezoning restrictions. Residents have no guarantee that, after pocketing all that public money, Osborne won’t turn around and renew his efforts to install a gas station on the property.  The agreement also allows Osborne to erect huge (18’ by 6’) non-conforming commercial monument signs---which could open the door to similar, over-sized commercial signs popping up all over the city. If you were an existing business you’d insist on equal treatment, right?
While residents are anxious to see the Catalano’s property redeveloped, they have a right to insist on a fair deal. Providing residents with their first (and only) opportunity to weigh in on the development agreement at the July 23rd Council meeting and then, moments later, voting to approve it would render meaningless anything they have to say.  Council needs to take the time to listen—and act—on residents’ thoughts and concerns before inking the deal.

Amy R. Feran, Highland Heights


Portion of Development Agreement Laying Out Osborne's Actual Redevelopment Commitment