By Andrew Walsh
awalsh@wbcowqel.com
Galion City Council was only too happy to take the next step Tuesday evening that could result in a new hotel on the city’s north side.
Council passed Resolution 2015-22 to approve Tax Increment Financing for the construction of a hotel at Brandt Road and Ohio 598. The backing for this agreement, and it should be noted that this resolution is not a binding final agreement, was necessary for the project to go ahead. By lending official support to this arrangement, Choice Hotels now has the confidence in the full backing of the city to move ahead with construction.
Choice Hotels is looking to build one of its Sleep Inn brand of hotels, in the 50 to 75 bed range that council’s study of last year showed the city could use.
“This is a show of commitment on the part of the City,” Dr. Tom Fellner said, “Not the final agreement.”
This Tax Increment Financing would work by collecting taxes at the normal rate, and redirecting some of those funds back to project by helping finance building of city infrastructure such as sewer and water lines. If all goes well, there are plans for shovels to be in the ground in January.
“The study from a year ago,” O’Leary continued, “validates council’s work.”
Mayor Tom O’Leary announced that the city is being offered the former HTI building (Hydraulic Technology Industry). This 300,000-square-foot facility, and the 20 acres on which it resides will be offered to the city at no charge. O’Leary did state that they are studying to make sure that there are no significant “hidden costs” but concluded with a “strong recommendation that we accept this building.”
O’Leary was optimistic about what ownership of such a structure could offer the town. They are keeping a steady eye on its carrying costs and what potential marketability there is, but O’Leary spoke of the building’s “tremendous upside, tremendous potential.”
The city would not be able to sell it for three years, but leasing would be permitted immediately. O’Leary cited the general rule of thumb of roughly one job per 1,000 square feet, and that such a building would likely cost $150 per square foot to build (which would mean the building would cost about $45,000,000 to construct). The deal is not completed but the opposite party is interested in having something locked up by the end of the year.
One final piece of building news concerns the Galion Public Library. In 1988-1989, the Library wished to issue some debt to finance an expansion product. In order to be able to do so, they had to partner with the city, and hand ownership of the building over to the city. Part of the agreement was that when the final payment was made on this debt service, the Library Association would have to resume ownership of its building. That last payment has come and gone, and Ordinance 2015-94 granted ownership of the Library back to the association.
The income tax ordinance that has been handed down from Columbus received a minor tweak from council. During the first reading, Law Director Thomas Palmer stated that for most of the ordinance, the city did not have much choice. However, there were a few small areas where council had latitude. On Tuesday night, council elected to use that latitude to strike from the ordinance the proviso that landlords must disclose the names and addresses of all their tenants. With that amendment added, the ordinance passed on a second reading and will receive its third and final reading at next council meeting.
Council approved an ordinance that would allow for the extension of water services to properties outside the city limits, provided they were adjacent to a property through which lines already ran. They could do this without being annexed into the City limits, provided that they paid for the work themselves and paid a 50-percent surcharge.
The weeds and grass ordinance that stipulated how tall growth on a property could be, also received an amendment. At the last meeting the point was raised that there was no language in the ordinance providing exemptions for gardens.
This had always existed on an understanding basis, but council felt it necessary to submit the following language: “This chapter shall not apply to the following forms of vegetation: ornamental gardens, food gardens, shrubbery, or trees which are associated with and on the same parcel as an existing residential or commercial use.”
Terry Gribble of the Galion Community Center-YMCA provided the year-end report. The weather patterns were similar to last year, with a very wet June hurting business. Last year the City had to reimburse the YMCA a shortage of $9,910 and this year that number dropped to $3,385. Although, this was mostly due to the pool opening a week later than normal as the school calendar was pushed back due to the poor winter weather.
“It’s a great asset to the city,” Fellner said of the pool.