Council spars over plans for North Towne acquisition

An otherwise low-key council meeting erupted in fierce debate Tuesday as Toledo City councilmen pressed for clarification on a plan to acquire and demolish the former North Towne Square complex.

Several council members peppered the Bell administration with questions over its proposal to take over the North Toledo property from its California-based owners and demolish it using federal funds. Under the plan, the owners would pay back about $120,000 in outstanding taxes, fees and utility bills but would potentially reap millions of dollars if the property is sold by the city to another developer.

Meanwhile, the city would use about $700,000 from an Environmental Protection Agency grant to tear down the structure, an amount it would hope to recoup through sale. However, the city also would take responsibility for upkeep of the land until it is sold. In addition, if the land is sold to another developer for less than its appraised value, the city would be liable to make up the difference.

Some councilmen's key concerns, which have lingered since the deal was announced more than two weeks ago, are that the deal puts the city at financial risk but lets the mall's owners off the hook, despite their negligence in its upkeep. Others, however, including Councilman Lindsay Webb -- in whose district the mall is located -- have advocated in favor of the plan as a necessary compromise to rid North Toledo of an eyesore.

Councilman Adam Martinez generated a stir Tuesday when he insisted another developer is interested in purchasing the site instead of the city. He accused Bell administration officials of failing to explore alternatives to their current proposal that would not put taxpayer funds at risk. He declined to provide specific information about the third-party developer, but insisted administration officials had been informed of them.

Deputy Mayor Tom Crothers and the city's commissioner for economic development, Brad Peebles, denied the claim.

"That's inaccurate," Mr. Peebles told The Blade. "I have spoken with no one regarding the North Towne mall."

Mr. Martinez said the city could work with the Lucas County land bank to expedite foreclosure of the property so that it wouldn't drag on for years, as some officials fear. Land bank chairman Wade Kapszukiewicz said Tuesday the organization would help the city if approached, but will not interfere in the administration's decisions.

Ms. Webb accused Mr. Martinez of trying to undermine the proposed deal. She pressed her colleagues to support the project, arguing it is essential to revitalizing North Toledo.

"What I'm hearing out on the streets is people want to see action on North Towne," Ms. Webb said. "They're asking the city to engage in this activity."

But Councilman D. Michael Collins said he agrees other options should be explored, principally allowing the current owners to lose the property through foreclosure and the court system. He also objected to a revelation from Public Utilities Director David Welch that the owners had an outstanding utility bill of $187,000, which would be reduced to $40,000 as part of the city's deal.

"We've assured these owners of a reward at the end of the deal for their failure to provide this community with responsible ownership," Mr. Collins said. "That's why it's hard for me to swallow."

Mr. Peebles, however, said the deal is the most effective way to wrestle control of the former mall from its owners and tear it down. The property is divided into four parcels and only two of the parcels are in foreclosure. That means only half of the site could be acquired through foreclosure, he explained.

"I would tell no one it's the best possible deal," Mr. Peebles said. "What I would tell people is it's a good option for the city to remediate the current status of the property ... and create the potential for us to market that property for future use."