South of Main Blockwatch

Letter to Director Barbash

Main Street Development

South of Main Blockwatch 489 Linwood Avenue
Columbus, Oh 43205
April 19, 2006




Mark Barbash
Director, Department of Development
City of Columbus
50 W. Gay Street
Columbus, Ohio 43215

Dear Director Barbash,

The Columbus Compact made a presentation to the Near East Area Commission’s (NEAC) Zoning Committee and made a statement that frankly has concerned members of the Blockwatch. When asked why the hurry in locating tenants for 1179 E. Main, the Compact responded that they need to make their mortgage payment. We were unaware that there was any mortgage. It was our understanding that the property was purchased free and clear with public money and that the Compact had set aside enough funds to do a competent project. This does not seem to be the case. We earlier raised questions about the financial ability of the Compact in a letter to Councilman Mentel (see attached). We never received a factual pointed response, and now the unease has resurfaced. We have some questions for you since your department is directly involved in the Compact receiving City money and because as a member of the Compact’s Board of Trustees you must be aware of what’s going on. In a conversation with Blockwatch members, the following concerns were voiced:

1. Is it legal to leverage property acquired through public funds to change from being a publicly funded not-for-profit to a private for-profit.

2. Why would the Board of Trustees authorize a $500,000 construction grant for the Salvation Army and then cut corners on the 1179 Project. For example, the Compact wants to have an amateur art competition to paint the east side of 1179 because they don’t have the money to hire professionals as they are doing in the Franklinton Area.

3. If the compact is concerned with making mortgage payments, why does the Board of Trustees authorize them to court commercial entities that by the nature of their business will only pay very low rent? The Compact stated it is looking for $12 a square foot but its proposed tenants will probably pay less than half that price. Will these tenants help attract the kinds of businesses that will make Main Street an attractive shopping destination ?

4. Has financial analysis been done to show that these rents will be enough to make mortgage payments as well as sustain the Compact’s operating expenses ? Who assumes ownership of said properties if the Compact ceases to exist ?

5. Will the City of Columbus make good on the loans if any of these business ventures fold? We cannot sustain any more failed or underperforming projects such as the South of Main Development Corporation, Broad Street Management, Poindexter Towers, CMACAO, or Michael Ross.

6. Since the Compact is under financial duress, is the Board of Trustees more pressed to stay afloat than to create good solid development? What are the Board’s priorities and how are they being expressed ?

7. The Compact wants to do commercial development from Ohio to Wilson. Is their money for that? How much? What kind of quality can we expect? Can you quantify that answer ? What special treatment is being considered for the historic Camel Bell ?

8. Both Family Dollar Wendy’s and other establishments in the Holtzman/Main area who recently opened in the Near East Side were willing to come up with design models to blend in architecturally with our neighborhood. In fact, in some recent articles I’ve read in Business First this is the trend in national chains i.e. to develop alternative models for different neighborhoods. How is the Compact addressing this ? We have a concern among other things that the proposed big red and blue logo will not fit in. None of the signage on Main between Parsons and Wilson is that obvious. The Save-a-lot sign in the Whitehall store is attractive and fits in with the surroundings.

9. With our upcoming charrette will there be a follow up with a professional consulting firm to determine the impact of the Wilson to Ohio plan that the Compact wants to develop similar to the study done for the Schottenstein’s store on Parson’s Avenue?

Director Barbash, we are committed to making our area a neighborhood of choice. Your timely response will be most appreciated. We look forward to the Charrette to be held on July 8th of this year.

Sincerely yours,


Kathleen Bailey
President SOMB

Cc: The Honorable Matthew Habash
The Honorable Michael C. Mentel
The Honorable Kevin Boyce
The Honorable Patsy Thomas
The Honorable Charleta Tavares
The Honorable Maryellen O’Shaughnessy
The Honorable Mary Jo Hudson
Thomas Leech, HUD
Near East Area Commission
Olde Towne East
Franklin Park Area Association
Woodland Park Civic Association
KBLNA
South of Main Blockwatch
Linwood/Kendall Blockwatch