Middletown leaders to discuss how to spend millions in rescue plan funds

Council to vote on spending which may include Hollywoodland project, ice rink
The 44-year-old Towne Mall Galleria, located in Middletown near Interstate 75, may be redeveloped and become a major destination, according to city officials. The city is proposing investing $3.75 million in redeveloping the mall with part of its American Rescue Plan Act federal funds. NICK GRAHAM/STAFF

The 44-year-old Towne Mall Galleria, located in Middletown near Interstate 75, may be redeveloped and become a major destination, according to city officials. The city is proposing investing $3.75 million in redeveloping the mall with part of its American Rescue Plan Act federal funds. NICK GRAHAM/STAFF

Right after Middletown City Manager Jim Palenick read off how the city was proposing investing its nearly $19 million in American Rescue Plan Act federal funds over the next three years, Mayor Nicole Condrey questioned the idea of building an ice rink at the Towne Mall Galleria.

Palenick said the city has earmarked $3.75 million of its ARPA funds to redeveloping the 44-year-old mall after receiving designs from RINKA, a Milwaukee-based developer, and a commitment of financial support from the Warren County Commissioners.

Middletown received $9,465,577 in ARPA funds in May 2021 and expects to receive $9,465,577 in May 2022 and has three years to allocate the money, Palenick said.

Part of the Towne Mall redevelopment calls for an ice rink that Palenick said would attract junior hockey tournaments, ice skaters and complement Spooky Nook, the mega sports facility being built in Hamilton. He said an ice facility also would be “consistent” with Warren County’s youth sports initiatives.

Palenick, hired last year, has proposed similar ice rinks in Racine, Wis. and Rio Rancho, N.M. Condrey noted that Rio Rancho is in a “bad spot” after building an ice rink and was spending 7% of its annual budget keeping the arena operational.

Palenick responded that before he was hired, council members drove him around the city and talked about bringing an ice rink to the Towne Mall property.

“This was not the idea of Jim Palenick,” he said during a recent council meeting. “This was not the design of Jim Palenick. This is not something I came up with.”

The plan, he said, was the idea of the current five council members.

Council member Tal Moon said that during executive sessions held before Palenick was hired, council discussed an ice rink.

Condrey then asked Palenick if he learned any lessons from the past two ice rink projects that could benefit Middletown.

“The key is to be consistent and follow through on your plans,” he said.

If those plans change, the possible success of the project is “remarkably small,” the city manager said. “That’s the lesson I would offer you.”

For the last several weeks, Palenick has come under fire from Condrey and Middletown residents after he proposed a $1.3 billion Hollywoodland project near the Great Miami River and parts of downtown. People have said the project that partially would be funded with $7.5 million in ARPA funds would fail in Middletown.

“People love to besmirch my reputation,” Palenick said.

As a city manager, Palenick said he works for city council and all the “large scale” projects he has proposed throughout his more than 30-year career in city government, have been approved, usually unanimously and sometimes up to 30 times, by council.

When he was city manager in Rio Rancho, he said the population grew from 50,000 in 2003 to 87,000 in 2007 and the city wanted to develop its downtown center with retail shopping, dining and entertainment.

Rio Rancho Events Center, a 7,000-seat multi-purpose arena, was supposed to serve as the catalyst for that development, he said. The $47 million arena opened on Oct. 21, 2006.

The city “stole” the New Mexico Scorpions, a professional hockey team, from Albuquerque, but after some council members weren’t re-elected and the recession hit in 2008, the project was not “nearly as successful as we hoped to be,” Palenick said.

Even if council approves the ARPA budget at tonight’s meeting, Palenick said “not a penny” would be spent on any proposed project without council’s approval. He said the dollars allocated for each project could be adjusted.


HOW TO GO:

WHAT: Middletown City Council meeting

WHEN: 5:30 p.m. today

WHERE: City Council Chambers, lower level City Building

AGENDA ITEMS: There are 28 piece of legislation, including ARPA budget, city budget, amendments to four Community Reinvestment Area agreements, and presentations on downtown security and Central Avenue improvement project.


PROPOSED MIDDLETOWN’S ARPA BUDGET

Here are the projects Middletown has earmarked for its $18,925,154 in American Rescue Plan Act federal funding:

$7.5 million: Riverfront/downtown redevelopment (Hollywoodland)

$3.75 million: Towne Mall Galleria redevelopment

$2.1 million: Robert “Sonny” Hill Community Center

$1.5 million: Manchester Inn/Snider buildings for housing

$1 million: Former Vail Middle School site for housing

$820,000: LED street light retro-fit downtown

$600,454: Premium pay for employees

$353,200: Oakland Neighborhood development

$210,000: Economic development grants

$209,000: Middletown Visitors Bureau to support tourism

$200,000: City parks

$187,500: Oakland Neighborhood demolition

$145,000: Major city-wide clean-up

$125,000: Former AK Steel headquarters, demolition and remediation

$125,000: CERTA, demolition and remediation

$100,000: Workforce training/neighborhood housing repair program

Total: $18,925,154

SOURCE: City of Middletown

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