After a two-month break, the future of the Harding Centre and the loans the building’s owner still owes the city were put back on the agenda for Monday’s Marion City Council meeting.
Members passed an ordinance 7-2 on which the building’s owner, Lois Fisher, will be personally responsible for the two loans. In addition, the loan owned by the city will be deferred for 10 years.
Fisher and the Harding Centre was originally brought up by Josh Daniels, I-At Large, at the Sept. 14 meeting, as council members and Mayor Scott Schertzer have met with the building owner in recent weeks to talk about the loans, which amount to $400,569.47, according to city documents.
One loan is controlled by the state since it is under the Community Development Block Grant (CDBG) Program. The Department of Housing and Urban Development initiative provides these grants annually to states, cities and counties in order to develop affordable housing for low and moderate-income people.
The other is an Urban Development Action Grant, which is controlled by the city. The UDAG provides development money to states to assist physically and economically distressed cities and urban counties.
Fisher told the Star that she wants the mortgages to be forgiven so that she can obtain a bank loan to make repairs. Several bricks on the west side of the building fell off earlier this month. It will cost $1.5 million to fix the façade and Fisher’s insurance will not cover the expenses.
Since the deterioration of the exterior is a safety hazard, barricades surround the Harding Centre and has closed off Orchard Street. Fisher wants the repairs done as soon as possible as the street closure may be affecting nearby businesses.
Daniels said Monday that he and Fisher discussed the loans a few weeks ago. While Fisher was unable to have the loans forgiven, she does have favorable terms for repayment.
“What the city ended up in the deal was non-forgiveness of the loan and Ms. Fisher agreed to sign personally on both loans so that sometime in the future we’re not dealing with Starfish Building LLC solely, but we’re also dealing with the LLC plus Ms. Fisher,” Daniels said.
Marion County Regional Planning Director Evelyn Warr-Cummings said she talked to an employee Sunday from the Ohio Development Services Agency, which manages CDBG loans. They said they have not had the chance to bring it to leadership officials but believes they will not agree to a 10-year deferral.
Ayers Ratliff, D-2nd Ward, then made an amendment to the ordinance by adding “delay payment of the UDAG loan for 10 years, delay payment on the CDBG loan as agreed to by Lois Fisher and the state of Ohio…”
“I just feel an urgency with this because we have a street that’s closed down and a delay of two more weeks is a delay of two more weeks that we don’t have our street opened up,” he said.
Councilwoman Karen Fosnaugh, R-5th Ward, asked why the loan is set at a 10-year deferment.
“I can’t make double payments, but in the course of 10 years, I should be able to get the loan paid down enough that I could refinance at that time, or the rents will be increased, but I can’t guarantee in 10 years where anything will be,” Fisher said.
Ratliff called the Harding Centre a treasure in the community and that he is glad Fisher was able to take over the building in 2013 when nonprofit Marion HAND eventually stopped making payments.
“Of course, it’s the cost of doing business to upkeep your building, but this is a very old building that has a lot of issues right now, and I just think it’s the responsible thing for us…to act like we are tonight,” he said.
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