Friday, September 27, 2013

OSBORNE DEVELOPMENT DEAL…DONE DEAL OR STILL NEGOTIATING?



OSBORNE UPDATE:
EVERYTHING'S STILL CLEAR AS MUD
On July 23rd, Council hurriedly authorized a publicly-funded $800,000 economic development package after developer Lance Osborne claimed that any delay would jeopardize his ability to finalize a deal with Fitworks, the anchor tenant he was pursuing for his Catalano’s redevelopment plan.

Residents were completely cut out of the process. They were kept in the dark during the negotiations and denied a meaningful opportunity to weigh in on the development agreement before Council approved it.

Although Osborne told Council that the deal would close in mid-August, September 1st came and went with no visible activity on the property.

On September 10th, Mayor Scott Coleman disclosed that, in addition to scoring $800,000 in publicly funded economic assistance ($600,000 of which is an outright grant), Osborne also wanted a tax break from the city----a 10 year, 50% abatement of his  renovation-related property taxes.
Coleman clarified that the abatement wouldn’t apply to the property’s $1.85 million base value---the amount, Coleman said,

Mr. Osborne has paid as purchase price for the property

According to the County Recorder’s records, however, Osborne hasn’t paid anything for the property---yet.  September 25th online records indicate that Giant Eagle still owns the property.

So the obfuscation continues.


ANOTHER TAKE ON THE OSBORNE DEVELOPMENT DEAL

Osborne’s tax abatement request is on the agenda for Council’s October 1st Committee of the Whole meeting.
President Cathy Murphy stated at Tuesday’s Council meeting that:

“…work to get Fitworks as a tenant was still proceeding.  He (Osborne) expects they will be willing to come in, but he’s also talking other tenants. “

 All along I got the impression that Osborne was the one pursuing Fitworks.

After a recent conversation, however, it appears I may have gotten things backwards.

I spoke with someone who is in a good position to know what’s going on with Fitworks. I have no way to verify what this person told me, but it sure didn’t sound like idle gossip. They said:

  • Fitworks was the pursuer and had, in fact, been pursuing both Osborne and Giant Eagle for several years.

  • Fitworks very much wanted to go into the old Syms store space on Alpha Drive but lost out to Discount Drug Mart.
  • Thereafter Fitworks started talking with Giant Eagle about the Catalano’s property---a 3 year long conversation as it turns out.
  • Things should be sorted out by October 1st---I’m guessing because of notification requirements in Fitworks’ current lease.


So there you have it. 

Osborne hasn’t been pursuing Fitworks---Fitworks has, apparently, been pursuing him.


EMERGENCY, EMERGENCY:
HALLOWEEN IS (STILL) OCTOBER 31st THIS YEAR!

Both our city Charter (Constitution) and city ordinances limit and address legislation that is passed by Council on an “emergency” basis.

CHARTER 4.10 states:

Each emergency measure shall contain a statement of the necessity for such emergency action, a precise statement describing the emergency, and shall require the affirmative vote of five (5) of the members of Council for its enactment.

HHts Ordinance 17. 02 reads:

Any ordinance or resolution deemed by Council to be an emergency measure shall require three readings … on three different days, unless… suspended in accordance with the provisions of Section 117.01.
Each emergency measure shall contain a statement of the necessity for such emergency action, a precise statement describing the emergency, and shall require the affirmative vote of five of the members of Council for its enactment.

President Cathy Murphy is generally quite careful to give reasons on the record when legislation is going to be passed hurriedly, on an emergency basis, without 3 readings.
Almost always it’s because there is some significant time crunch or looming deadline.

 This was the third agenda item at this week’s Council meeting:

Proposed Resolution providing for the observance of Halloween on October 31, 2013 and declaring an emergency.

Council suspended additional readings and enacted the resolution (Resolution 30-2013) on the spot, as an emergency measure, without 3 readings.

I’m still trying to figure out what the emergency was.

Council wasn’t running out of time.
Halloween was still 5 weeks and more than 2 regularly scheduled Council meetings away.
That, of course, left me guessing:

  • Was Council afraid Mayfield Village would beat them to the Halloween punch?
  • Did they think that residents were waiting with bated breath to find out whether Halloween would occur this year?
  • Did they think residents wouldn't  shop for candy and costumes, thereby depressing the local economy, until Trick-or-Treat night was officially declared?  

I can’t tell you what Council was thinking because President Cathy Murphy didn’t explain the emergency.
She did say that Law Director Tim Paluf 

advised suspending the 2nd and 3rd readings (of the resolution)."

 It's good to know that no piece of legislation is too small or insignificant to escape the attention of our city’s legal beagle.
But wait a minute.

Isn’t he the one that’s supposed to make sure everyone follows the rules?