Galion City Council approved measures related to real estate at Tuesday night’s meeting.
Council voted 6-1 to accept the Hydraulic Technologies LLC building as a donation.
HTI, which specialized in custom-welded hydraulic cylinders and employed 70 positions, announced its closure in April. The move was made by Ligon Industries LLC, HTI’s parent company.
In the worst case scenario, the city would be responsible for about $30,000 in insurance and utilities-related costs if there was no lessee at the end of 2016, Mayor Tom O’Leary said, adding that he anticipates a partial occupant next year.
With that scenario, costs would be paid from the general fund, City Auditor Brian Treisch said.
Council member Susan Bean, 4th-ward, was the only council member who opposed the city’s ownership of the building.
“The city is not a real estate business,” she said.
O’Leary said there are no immediate repairs and improvements for the HTI building, but would be needed when a tenant leases the building. Those costs – along with insurance, utilities and taxes – would fall on the tenant.
In addition, O’Leary said the city would have a third-party handle the lease agreements on its behalf.
Council also approved a resolution to approve $7,952.25 in expenses related to title services for the building.
During the past few months, the mayor has worked with officials from JobsOhio, the private economic development agency, and InSite Consulting Group, based in Greer, S.C., to determine the marketability of the South Street location, which is roughly valued at $4.3 million.
InSite officials informed the mayor that the building would not be competitive for bringing outside industries, O’Leary said, but could be put to better use for expanding local ones.
In other business, Council approved a $980,740 revolving loan fund for the Central Hotel project, which would be used to finance a portion of the reconstruction of 12 out of 30 units at the location on Public Square in Uptown Galion.
Ownership of the hotel anticipates 12 occupants in January with an additional six by April.
Council members also approved the city to advertise city-owned property at the Galion Municipal Airport for cash rent farming. The property is now being used for farming purposes, but the contract for that use will expire in February, Law Director Thomas Palmer said.
Reach Klein at 419-468-1117, ext. 2048 or on Twitter at @brandoneklein.