Cincinnati-based Vandercar Holdings is the latest developer proposing to transform the mall originally known as Forest Fair Mall into a mixed-use development that incorporates light industrial and retail. The site is mostly in Forest Park in Hamilton County with about 25% of the land ― and the parking garage ― in Fairfield. A plan is before Forest Park City Council for the Hamilton County side that includes a development agreement and request to rezone part of the property.
The developer previously told the Journal-News they would tear down everything except for the Kohl’s store and the parking garage that’s been unusable for nearly a decade as the fire suppression system is inoperable. Vandercar CEO Rob Smyjunas said he won’t tear down what he said is a near-$100 million asset, and if government leaders insist, then “they can find somebody else to do it.”
“It’s a $186 million user that wants to invest in the area on one particular piece of land but it doesn’t matter to me,” he told the Journal-News on Tuesday afternoon. “I can put (this project) someplace else.”
While Smyjunas sees it as an asset, leaders from the county and cities see it as a liability, limiting development possibilities, and potential tax benefits for Fairfield.
The controversy over tearing down the garage is more than $10 million, which is the amount of the bonds placed on the garage in 2004 by the Cincinnati Port Authority. While the bonds could be transferred, an equivalent public use needs to be found for them. On this site, there would be nothing equivalent, so a $5 million demolition project is now $15 million-plus.
Butler County, Fairfield and Forest Park leaders, however, say the garage needs to be razed in order for the site to realize its true potential. Butler County Commissioner and land bank board member Don Dixon said the county is prepared to move forward with the demolition of the Forest Fair garage on the Fairfield side of the bisected property.
“That’s a key piece of property,” he said. “It’s not fair the way they’re trying to put it together. We’re not stupid up here. We’ll do our part but we’re going to be protective.”
The inequity of the project, Dixon said, is Vandercar is planning to develop the Forest Park side first, and possibly wait a couple of years before developing the smaller Fairfield side. Forest Park will not only realize the tax benefits of a redeveloped site first, but the parking garage would limit the development possibilities on Fairfield’s side, he said.
Fairfield Development Services Director Greg Kathman said the Vandercar proposal is “a lacking plan from our standpoint. We’ve indicated that to the developer.”
Kathman and Forest Park City Manager Don Jones said they both know of other potential developers who have since looked at the site as neither wants to see light industrial buildings in this part of their cities.
“There are folks looking at it seriously who have the capabilities and the experience to do this project, and a lot of positive discussions have happened in the last few weeks,” Kathman said. “I think the next two months will be very telling.”
Forest Park officials have said they have been working for months on a development agreement. Until Monday’s land bank meeting, leaders from the northern Hamilton County community haven’t said why there hasn’t been a signed agreement yet.
Jones said the only thing keeping the deal from being inked is the garage as the more than $10 million in bonds must be paid off before paying another $5 million to raze the 25-year-old structure. Without the demolition grant, this project wouldn’t be happening, he said.
Dixon said if it’s a big enough project, the county could work with a developer with or without state demolition funds.
“Do you think anyone who has the pocketbook to develop that is going to let $8 million stand in their way?” Dixon asked, adding they need to get down to the brass tacks without dragging the discussions out.
Jones agreed with the Butler County leaders that everyone needs to be in lock step with Fairfield in developing the property that’s not seen a lot of success since it was known as Forest Fair Mall. In 2002, the mall property was sold to Mills Forest Fair LLC, which rebranded and redeveloped it as Cincinnati Mills, for nearly $58.36 million, according to the Butler and Hamilton county auditor sites.
The site never really prospered, and in March 2010, the owner, which changed its name to Cincinnati Mills LLC, sold the property for $5.9 million, just more than 10 percent of the 2002 value.
Smyjunas said they are still in discussions with Forest Park, though he said Jones hasn’t talked with him in nearly a month.
Jones told the land bank board that Forest Park isn’t thrilled about the plan, and isn’t willing to subsidize this project with light industrial buildings in an area adjacent to Interstate 275 and surrounded by offices, restaurants and retail.
“We have not finalized that (development agreement) because we don’t like the numbers,” he said at Monday’s meeting. “We’re still kind of in the same boat with you guys, this is not a good enough deal for us. It’s not a good enough deal for you.”
Forest Park City Council next meets in September where the development agreement and zoning change request will again be on the agenda. The Butler County land bank next meets in October, and the hope from the board is they’ll know the direction of not only the site but also where that $7.9 million will be spent as they have until the end of 2025 to use it.
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