Loan to pay part of razing building

CELINA - City administrators will consider issuing up to $60,000 in revolving-loan funds to cover part of the cost of demolishing a blighted building.

The demolition would pave the way for an expansion of the Mackinaw Retirement Village at 500 W. Wayne St.

At a committee of a whole meeting on Monday, councilors through a voice acclimation vote authorized city safety service director Tom Hitchcock and mayor Jeff Hazel to pursue an agreement that would furnish the funds to Mackinaw of Celina Limited Partnership.

Mackinaw owners are purchasing what is commonly referred to as the former Stokely building on West Livingston Street, Hitchcock said. The building is located just south of the retirement village and is owned by The Standard Printing Co. Inc., according to county records.

Hitchcock said Mackinaw officials want to raze the building so they can expand the retirement village. The owners are seeking up to $60,000 to cover a portion of demolition expenses.

"Obviously he's not asking for the whole amount because it's a big cost, but he's just asking if we're willing to help in any way with the revolving loan fund," Hitchcock said, calling the request "reasonable."

The city's revolving loan fund is seeded by federal dollars and had a balance of $190,000 at the beginning of the year. City councilors a few months ago moved to furnish up to $76,300 in revolving loan funds to demolish the former Celina Motel. Lake Edge LLC has "dynamic plans" for a commercial development to the tune of $4 million, Hazel had noted at the time.

Unlike previous recipients of revolving loan funds, Lake Edge LLC is not required to repay the money since it met one of the state's requirements of removing slum and blight.

Work on the former Stokely building also would be classified as removing slum and blight. So Mackinaw would not be required to pay back the loan either, Hitchcock confirmed.

Councilman June Scott on Monday night pointed to the agreement as a precedent-setting move.

"We should follow up and do the same as we have done in the past," Scott opined. "We don't want to pick and choose on who we help and who we don't help, unless there's a criteria issue."

Councilman Mark Fleck asked if any studies have been completed on the former Stokely building.

"They know there's quite a bit of asbestos in it. They were planning on removing that themselves ahead of time. But he's not asking for help on that part," Hitchcock said.

Other councilors voiced support for issuing revolving loan dollars to get rid of the building.

Councilman Eric Clausen said the building is in "pretty bad shape, and it's definitely an eyesore."

"If the figure is going to be in that ballpark, I don't know why we wouldn't try to make this happen," he added.

Councilman Mike Sovinski said he doesn't see any drawbacks to the proposal.

"We're getting rid of a blighted building and there's a very good chance that it will be replaced with living units that we need in the city and hopefully brings in more tax money," he said.

The commitee then moved to recommend that city administrators proceed with the proposal.

Hitchcock said demolition of the former Celina Motel is expected to begin on Wednesday. He doesn't anticipate it will take much time to complete.

The company behind a multimillion-dollar commercial redevelopment of the motel site first also plans to create a new business, perhaps involving coffee, chocolate and alcohol, in the building that had housed Charlie's Pastry Shop.

Lake Edge LLC owners Cody and Sarah Muhlenkamp are dedicated to revitalizing the city's historic downtown to spur the local economy and cultural growth.