Council OKs Casto deal as emergency

FINDLAY — Findlay City Council pushed through the Casto development agreement Tuesday with a 7–3 vote, ending a tense debate over whether the city should spend $1 million on land some members argued offers little direct value to taxpayers. The ordinance authorizes city administrators to sign development agreements with Casto Communities LLC, Columbus, and Sunrise Hospitality Group LLC, Columbus, purchase roughly 21 acres from Mardic Investments Inc., Sylvania, and begin construction of public infrastructure to support the projects. The development agreement runs 67 pages. Casto's 374-unit development, planned east of Wellness Way near the Interstate 75 diverging diamond interchange, includes townhomes and one-, two- and three-bedroom apartments with rents expected between $1,300 and $2,000 per month. Construction is expected to take 24 to 28 months. Voting opposed were council members Rodney Phillips, R-6; Dan DeLong, R-7; and Heather Kensinger, R-at-large. A motion to call the question and end the debate failed 6–4 before council proceeded to the final vote. Kensinger said she remained troubled by what she described as an "interest-free $1 million loan" to acquire land the city cannot fully use, arguing the purchase shifts risk to taxpayers without a clear explanation of why the agreement represents the best deal for Findlay. She said the purchase would require taxpayers to absorb a financial loss and warned that the agreement could set a precedent in which developers pressure the city into buying property that provides limited direct value. DeLong said the purchase would put the city "in the hole more," with no clarity on what capital projects might be delayed to accommodate the cost. He questioned the land's usefulness, describing it as wetland and saying he did not believe Casto would halt its project if the city declined to buy it. Mayor Christina Muryn countered, saying the parcel's configuration allows the city to build infrastructure across multiple properties and open access for future development. She said the city would recoup its costs through Casto's repayment obligations and long-term revenue from the Tax Increment Financing area (TIF). Muryn said the land is needed to connect multiple parcels and allow infrastructure to be built across the corridor. She said purchasing the land now will cost less than waiting, and that opening access across the parcels will create long-term tax gains as additional development becomes possible. She said portions of the land provide detention and green space value even if they are not fully developable. Muryn said the land is not undevelopable for city purposes, comparing it to other areas where sewer, water and stormwater improvements have supported growth. She said the parcel provides a needed piece of the larger development puzzle, including future connections such as a possible pedestrian bridge over Interstate 75. The legislation authorizes the mayor to sign separate agreements with Casto and Sunrise. Those agreements commit the city to building public infrastructure, including Mardic Drive, improvements to Midwest Court and County Road 99, and related utility and drainage work, to support both projects. It also authorizes the city to buy 21.5 acres from Mardic Investments, 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. Finally, the ordinance also declares the infrastructure work and parkland purchase to be a public purpose and includes an emergency clause so it takes effect immediately upon passage. Emergency language bypasses a 30-day stay on legislation approved by council to allow for public review and a possible citizens' referendum.