Findlay council advances Casto plan

FINDLAY — Findlay City Council voted Tuesday to advance a development agreement with Casto Findlay LLC, Columbus, and Sunrise Hospitality, Fremont, despite warnings from Auditor Jim Staschiak. The move triggered a 20-minute confrontation between Staschiak, Mayor Christina Muryn and council members. Staschiak said his office still has to complete the statutory fiscal review of the development agreement, including verifying the accuracy of the financial terms, checking the city's reimbursement language for IRS compliance, confirming the legality of using multiple city funds to front the infrastructure costs, and reviewing the bond‑related provisions that allow the city to reimburse itself later. He said the ordinance still contained errors and included at least one blank left for his office to resolve, and noted that bond counsel had not yet reviewed the document. Staschiak warned council that moving ahead without completing those steps risked exposing the city to financial and legal problems, including improper reimbursement and non‑compliant bond financing. Staschiak said the rush was politically motivated because "it's a bad deal for taxpayers." "There is no known reason that it can't wait until your next meeting," Staschiak said. Councilman BJ Preston, R-2, pushed back, saying the issue had been before the Finance Committee since January. Preston chairs the committee. "If the auditor continues to stall and delay… maybe getting it on the reading will help him get those opinions out there to us," he said. Muryn said the auditor has been included in correspondence for months, and defended the add‑on, saying the ordinance had to be placed on the agenda for council to review it publicly. Council voted 6-1 to add the legislation to its agenda, where it received a first reading on Tuesday. Councilman Dan DeLong, R-7, cast the lone dissenting vote on Tuesday. He said the legislation was delivered late to council, leaving him no time to review it. At its core, the ordinance does five things: The legislation authorizes the mayor to sign separate agreements with Casto and Sunrise. Those agreements commit the city to build public infrastructure — including Mardic Drive, improvements to Midwest Court and County Road 99, and related utility and drainage work — to support both projects. Casto and Sunrise would dedicate right‑of‑way and make payments to offset part of the cost. Authorizes the city to buy 21.5 acres from Mardic Investments Inc., Sylvania, the landowner. The appropriation covers the purchase and related closing, title, survey and professional costs. The ordinance appropriates $1.05 million from the General Fund for the purchase and related closing, title, survey and professional costs. The legislation also allows the city to front the cost of infrastructure and reimburse itself later. The city expects to initially pay for the road, utility and infrastructure work, about $1.9 million, using the General Fund, Water Fund, Sewer Fund, Capital Fund, or other available accounts. The ordinance preserves the city's ability to reimburse those funds later using TIF revenues, developer payments, or the proceeds of future bonds. It also authorizes the auditor to track and process those reimbursements. It also sets up the framework for future bond financing. The ordinance declares the city's "official intent" to issue bonds at a later date to reimburse eligible costs. It does not authorize any borrowing now, but it directs the mayor, auditor and law director to begin preparing a future bond resolution. One section includes a blank for the maximum principal amount, which would be set in later legislation. Finally, the ordinance also declares the infrastructure work and parkland purchase to be a public purpose and includes an emergency clause so it would take effect immediately upon passage. Emergency language bypasses a 30-day stay on legislation approved by council to allow for public review and possible citizens' referendum. In February, the Finance Committee was told that the 374-unit Casto Communities project, planned east of Wellness Way near the diverging-diamond interchange on Interstate 75, cannot advance until the land purchase and infrastructure issues are resolved. The development relies on both the land purchase and the construction of a north–south connector road to open access across multiple privately owned parcels. The development would include a mix of townhomes and one-, two- and three-bedroom apartments, along with single-story options and amenities such as a clubhouse, fitness center, pool, coffee bar and internal sidewalks. Rent is expected to range between $1,300 to $2,000 per month. Construction is expected to take 24 to 28 months. Developers would then reimburse the city for part of the expense. Casto would repay $1.4 million over 10 years, and the Sunshine Hospitality Group, with plans to construct a hotel nearby, would contribute $500,000 upfront. According to site plans filed in September 2024, the hotel would be located at the intersection of Mardic Drive and County Road 99.