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By the Numbers
100 — New jobs added at Konecranes
25 — New jobs originally anticipated at Konecranes
$787,000 — sale price for the Clark County Agricultural Building to Konecranes
Clark County commissioners approved a lease-to-own deal with Konecranes Region Americas that allows the growing company to purchase the agricultural building for $787,000.
The 2-1 decision to approve the deal Tuesday and terminate a previous lease agreement came during a contentious meeting in which County Commissioner David Hartley called the deal illegal because county officials didn’t allow other companies to bid on the building.
“We could wind up with no sale and no lease,” Hartley said.
Clark County Commissioner John Detrick disputed that, saying it’s not illegal and the county prosecutor’s office found it didn’t violate the Ohio Revised Code.
He and County Commissioner Rick Lohnes voted in favor of the deal and praised Konecranes for adding jobs and boosting the local economy.
Detrick also criticized Hartley for voting against the deal, calling his comments at the meeting at the Clark County Fairgrounds before about 100 people, including the president of Konecranes “embarrassing” and placing “his own own personal ambition ahead of the community.”
The agreement calls for Konecranes to pay more than $65,500 each month for 12 months.
It also includes a clause that states the county must reimburse Konecranes up to $200,000 for renovations made to the building if the county is unable to sell the building to the company, according to the lease-purchase agreement obtained by the Springfield News-Sun.
The lease-purchase agreement with Konecranes comes two years after the company signed a five-year lease on the Clark County Agricultural Building at 4400 Gateway Blvd. after announcing plans to establish a global training facility in the area.
President Tom Sothard said then that the company would add 25 new jobs and bring thousands of visiting workers to the area annually as part of the crane maker’s expansion at the PrimeOhio Industrial Park.
But the company has exceeded expectations, already adding up to 100 new jobs.
The company is pleased commissioners approved the lease-purchase agreement, Sothard said on Tuesday, and stressed the company’s commitment to investing in Clark County
“Our objective from day one was simply try to find opportunities to expand our operations in the community and employ people,” he said.
Clark County commissioners sought in April to sell the building to Konecranes for $800,000. But last week Konecranes officials asked the county to reduce the price due to some issues with the building.
Commissioners reduced the price tag by $13,000, which is described in the agreement as the county’s contribution for building repairs.
Company officials are satisfied with the deal, Sothard said, but he noted that it could have purchased another building in between Springfield and Dayton for less.
“We accept it as a fair price, but there are a lot of other options between Dayton and Springfield. But we think that what we’re doing is helping Clark County. It’s a win-win as far as we’re concerned,” Sothard said.
Hartley, however, said the county should have sold the building for $900,000 or more, based on appraisals by firms hired by the county.
One appraisal valued the building at $900,000, another said it was valued at about $700,000. In addition, a Clark County Auditor’s Office statement of value indicated the building was worth $1 million. Midland Properties report valued it at about $750,000.
“Clark County selling this property substantially below its value is an affront to the taxpayers of Clark County,” Hartley said.
The county sold the building to Konecranes for a reasonable price, Detrick said, and stands to get more money in return.
The crane manufacturer will pay property taxes based on the $1 million value of the building, Clark County Auditor John Federer said, not the sale price. That means the company likely will pay about $19,150 per year, but he added that the company can appeal.
The company is one of the area’s largest employers, Detrick said, and hasn’t asked for tax incentives for the project.
“It is absolutely ludicrous to not welcome them with open arms,” he said.
When Konecranes leased the building in 2012, multiple agencies moved out and into the Springview Government Center, including OSU Extension Horticulture, 4-H and Clark County Soil and Water Conservation District.
The cost of moving the tenants to Springview cost the county about $800,000.
Hartley voted against the county leasing the building to Konecranes in 2012 because of concerns about costs to renovate Springview and fear the business would leave at the end of the five-year lease.
The Greater Springfield Chamber of Commerce Community Improvement Corp. should have purchased the building from the county in 2012, Hartley said, and then sold it to Konecranes.
He said the county selling the building to Konecranes without allowing other companies to bid on it violates the Ohio Revised Code.
“If a taxpayers lawsuit is instituted against Clark County, there’s a possibility of an injunction blocking this illegal sale of the property,” Hartley said.
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