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1 MINUTES OF COMMITTEE OF THE WHOLE AUGUST 4, 2025 COUNCIL CHAMBERS Present: Councilmembers Kepple, Baker, Bullock, Marx (6:07 p.m.), Strebig, Steiner, Evans Also Present: Planning Director Byington, Mayor Meghan George, Law Director Vargo, Finance Director Mahoney, Rob McCarthy with Bricker & Graydon, Brent Sobczak of Casto, Ken Kalynchuk with Project Management Consultants, Council staff Call to Order: 6:04 p.m. Approval of the minutes of the July 21, 2025 Committee of the Whole. Motion was made and seconded to approve the minutes of the July 21, 2025 Committee of the Whole. Councilmembers Bullock, Baker, Strebig, Evans, Kepple and Steiner voted in favor. Motion passed. Minutes approved. ORDINANCE 24-2025 - AN ORDINANCE to take effect immediately provided it receives the vote of at least two thirds of the members of Council, or otherwise to take effect at the earliest period allowed by law, authorizing the City of Lakewood, Ohio to transfer title to certain real property located within the City and enter into a Purchase and Sale Agreement with Belle Ave Partners, LLC for the purpose of supporting the redevelopment of certain real property in the City of Lakewood. ( 1st read & referred to COW 7/21/25) Communication from Planning Director Byington regarding Former Lakewood Hospital Site – Establishment of Tax Increment Financing ( TIF). (referred to COW 7/21/25) ORDINANCE 25-2025 - AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council declaring improvement to real property within the City of Lakewood, Ohio to be a public purpose; exempting such improvement from real property taxation; requiring the owners of the property to make service payments in lieu of real property taxes; establishing an urban redevelopment tax increment equivalent fund for the deposit of service payments, making related authorizations pursuant to Ohio Revised Code Sections 5709.41, 5709.42, 5709.43 and 5709.83; and authorizing a service payment agreement in connection with the same. ( 1st read & referred to COW 7/21/25) President Kepple introduced the ordinances and communication related to the downtown development project and invited Director Byington to deliver a presentation. Docusign Envelope ID: 9BC0EAB4- E6F4-42DE-A416-AF8D1F3E4281 2 Planning Director Byington explained that Ordinance 24-2025 proposes to authorize the transfer of the title to the downtown development site and that Ordinance 25-2025 proposes to establish a tax increment financing agreement to help finance the project. She recapped the process leading up to this point, highlighting that in December 2024, Council approved the project as a Planned Development ( Ordinance 20-2024), approved a Development Agreement with Casto ( Ordinance 21-2024) and also approved a School Compensation Agreement ( Ordinance 22-2024). She reviewed the site plan, providing information on the project’ s key features related to apartments, commercial space, parking, and public space. She reviewed key terms of both the Development Agreement and the School Compensation Agreement. Director Byington explained that Ordinance 24-2025 authorizes the sale of the site to Casto for 1.5 million. However, that amount will be forgiven if certain conditions are met, which she explained. She further explained that the Development Agreement stipulated a set of requirements prior to the conveyance of the site. She listed each of those requirements, remarking that Casto has met, or is in the process of meeting them all. Director Byington explained that Ordinance 25-2025 provides for the creation of a TIF, which will provide a subsidy for the development. She explained the details of the agreement and how it interacts with the School Compensation Agreement, which has now been executed. Vice President Baker stated that due to a potential conflict of interest with his employer, that he will have to abstain from discussions and voting on the TIF. He asked for a general update on the project and when construction will begin. Mr. Sobczak stated that the project is approximately 45 days away from shovels going in the ground, as of today. Currently, the project paperwork and loan documents are being reviewed by lenders and lawyers. He explained that the project will progress from Detroit, moving south. The project is estimated to take 26 months to complete, once it begins. President Kepple clarified that the intent of tonight’ s meeting is to keep the project on track and ensure that Ordinances 24-2025 and 25-2025 are ready for adoption in September. Councilmember Bullock asked Mr. Sobczak of Casto to explain to the public the justification for the TIF and to explain Casto’ s financial contribution to the project. Mr. Sobczak attested that the TIF is absolutely necessary to make the project’ s financing come together. He noted that Casto has contributed $ 30 million to the project. He stated that if it were not for the TIF, the project would not be able to move forward with the same high quality and scale that is planned. He concluded that he believes the TIF is fair because it is comparable to development agreements for similar projects around the region and state. Councilmember Bullock acknowledged that the City set a high bar and had many requirements for the development. Docusign Envelope ID: 9BC0EAB4- E6F4-42DE-A416-AF8D1F3E4281 3 Mr. Sobczak agreed and stated that those requirements added costs which also justify the TIF. In response to a question about the Curtis Block, Mr. Sobczak stated that the Curtis Block will be completed within 14-16 months, at approximately the same time as the garage. The goal is to identify a ground floor retail tenant to move in around that time. In response to a question about the apartment rents, Mr. Sobczak explained that Casto will follow the requirements of the Community Reinvestment Area, which are 10% of housing to be offered to residents earning 80% of Area Median Income ( AMI), and another 10% of housing to be offered to residents earning 120% of AMI. The pricing for the 7 townhomes is unknown. There was discussion among President Kepple, Planning Director Byington and Mr. McCarthy regarding the terms of the sale. It was clarified that the $1.5 million sale price may be forgiven after Casto completes the public portions pf the project. It was stated that this stipulation was always in the Development Agreement and that there have been no changes to the Development Agreement since it was adopted by Council in December 2024. Councilmember Bullock asked that Council receive regular updates on the project so that it may respond to resident questions. President Kepple stated that it is important to be reminded that the property has never generated tax revenue. Currently, the project site is a cost to the City to maintain. The development is a way to add value to the site. She concluded that this project has had a long road with many iterations, but that she is happy to move forward. Motion by President Kepple, seconded by Councilmember bullock to refer Ord. 24-2025 favorably back to Council. Councilmembers Bullock, Evans, Marx, Kepple, Strebig and Steiner voted in favor. Councilmember Baker abstained. Motion by President Kepple, seconded by Councilmember bullock to refer Ord. 25-2025 favorably back to Council. Councilmembers Bullock, Evans, Marx, Kepple, Strebig and Steiner voted in favor. Councilmember Baker abstained. Committee of the Whole adjourned 6:29 p.m. Approved: Sarah Kepple, Chair Committee of the Whole Maureen M. Bach, Clerk of Council 9/12/2025 Docusign Envelope ID: 9BC0EAB4- E6F4-42DE-A416-AF8D1F3E4281