Deal for 2 Toledo landmarks erupts into dissension

United North would acquire the boarded-up St. James Hotel in North Toledo, shown here in a historic photo. THE BLADE Enlarge | Photo Reprints

Plans for the future of two landmark Toledo buildings -- One Maritime Plaza in downtown and the historic St. James Hotel on the city's north side -- exploded into a controversy Tuesday when a local nonprofit development organization complained the deal would leave it short-changed.

The plan, brokered by the City of Toledo, would transfer One Maritime Plaza on the downtown waterfront from its current owners, the American Maritime Officers' pension fund, to the Toledo-Lucas County Port Authority for $143,000 in cash. The Port Authority would also agree to spend $757,000 on upgrades to the building.

The city would then transfer the cash portion of the transaction to the community development corporation United North, in an effort to satisfy the terms of a federal loan the AMO used to construct the building in 1982. United North would also acquire the boarded-up St. James Hotel in North Toledo, which is on Summit and Lagrange Streets, along with two nearby surface parking lots now owned by the AMO.

Those terms did not sit well with United North's chief executive officer, Terry Glazer, who said it comes nowhere close to satisfying the amount owed to his organization under the federal loan program. The AMO was supposed to pay United North's predecessor, North River Development Corporation, $2.3 million in rental proceeds from the building but never paid anything, Mr. Glazer said. He also accused the city of failing to involve his organization in negotiating the deal.

"We're owed $2.3 million and they want to pay $143,000 and give us the St. James hotel that needs between $3 million and $4 million worth of work," Mr. Glazer said. "No one can tell me that One Maritime Plaza is only worth $143,000."

Mr. Glazer said United North, a group dedicated to revitalizing North Toledo, would like to revamp the St. James Hotel. But without receiving more money from the One Maritime Plaza deal, the organization cannot do it, he said.

But Toledo deputy mayor Tom Crothers classified the deal as a "win win" for all the parties involved. He said One Maritime Plaza -- which houses the offices of the Port Authority and that of U.S. Rep Marcy Kaptur (D., Toledo) -- never produced enough profit from rent to pay the federal loan proceeds back, which he said amounted to $2.5 million. Over time, the structure has fallen into disrepair, and urgently needs upgrades to remain viable and keep its current tenants, he said.

The city-brokered deal will keep One Maritime Plaza from becoming another vacant building in Toledo's downtown, Mr. Crothers said.

"This way, we have a viable building, we get it into the hands of our partner, the Port Authority. They will make the maintenance and repair improvements," he said. "They will have a nice building for the remaining tenants to enjoy and the lights won't go dark on another building in downtown Toledo."

When pressed by council, Mr. Crothers acknowledged United North had not been consulted during the negotiations.

"Frankly, we needed to act," he said. "We needed to get the building into the hands of someone who could secure it."

Council is slated to discuss the deal further during a committee hearing next month.

Also Tuesday, council discussed a plan for the city to transfer its interest in the Brownstone's housing project on Dorr Street to the Lucas Metropolitan Housing Authority.

LMHA would take over a total of $177,100 in loan and mortgage interests on the property, and endeavor to sell the units to low and moderate-income residents.

Currently, just one out of the six units has been sold.

Contact Claudia Boyd-Barrett at: cbarrett@theblade.com or 419-724-6272.