New Carlisle to finally sell defunct development for $189K


The city of New Carlisle has agreed to sell the defunct Twin Creeks Subdivision — finally ending a nine-year ordeal and recouping some of a roughly $1 million bond it co-signed.

Residents applauded after New Carlisle city council members agreed this week to sell 27 Twin Creeks lots for $189,000.

The proprieties will be sold to Don Gilliam of Hal Don Properties, who has for years sought to purchase the lots from the city.

“This has been a very long process. Longer I think for some of you sitting right behind the council there and some citizens in the audience,” City Manager Randy Bridge said.

The debt owed on Twin Creeks has been the underlying cause of New Carlisle’s recent financial issues.

The city has been required to pay about $86,000 annually from its general fund because the city co-signed the bond for the project. The parcels were originally purchased by a Michigan investor in 2004, but the development stopped when he died three years later.

Proceeds from the sale will drop the balance owed on the bond from $675,000 to $486,000, Bridge said. He also plans to refinance and lower the interest rate on the bond.

“We’re getting rid of parcels of land that have no houses on them. There’s no benefit to having a vacant parcel of land in your city. We need a house on there, we need people in it, making money and in return supporting our income tax,” Bridge said.

The total city debt owed is $86,000 per year, but the city generally pays about $70,000 to $72,000 after the city gets reimbursed from the $750 annual infrastructure and road assessments paid for by current residents on the developed properties.

Council Member Rick Lowrey, who lives in the area, said residents agree to 20 year assessments when they purchase a home there. There’s also a homeowner association fee, he said.

Lowrey said he’s happy the city found a buyer for the lots, but wished the city could have received more money for them. He also added that the buyer is taking a gamble because there’s no guarantee that he’ll be able to sell or develop them.

“But it’s a burden on the city so I’m glad they’re gone,” Lowrey said.

Mayor Mike Lowrey said he was pleased the city was able to sell the property.

“It’s amazing to have it behind us and move forward. We can pay down some heavy debt that’s out there and it will be a nice burden off the city’s shoulders,” Mike Lowrey said.

Last year, New Carlisle made more than $100,000 in cuts to its general fund, including cutting the number of deputies who patrol the city in half.

The development also became one of the county’s largest delinquent property taxpayers.

Council Member Lowell McGlothin was on city council when the New Carlisle officials co-signed for the bond for Twin Creeks and became responsible for payments after the developer’s death.

The housing bust and the Great Recession followed.

McGlothin said at the time a former law director told council members it would “never come back to bite us.”

“Guess what, it came back to bite us and it’s been a thorn in our side ever since,” McGlothin said.

McGlothin said the city was hit by a “perfect storm” when the developer died and the recession hit.

“I’m so relieved that it’s over with,” he said. “I would be very, very happy if we start getting houses on them.”

Vice Mayor John Krabacher and Council Member Ethan Reynolds said they too were happy about the sale.

“Very excited to see us selling these things and paying down our debt. I know we’ve discussed this for three or at least four years … Definitely one of, I would say, my proudest moments with this city,” Reynolds said.



Reader Comments ...


Next Up in Politics

Mike DeWine ice cream social brings out nearly all of GOP slate
Mike DeWine ice cream social brings out nearly all of GOP slate

Hundreds of Republican supporters spent an afternoon Sunday listening to optimistic speeches at the annual Ice Cream Social that Ohio Attorney General Mike Dewine and his wife Fran hosted at their home near Cedarville. DeWine’s event brought nearly all the Ohio GOP statewide candidates; Senate candidate U.S. Rep. Jim Renacci, R-Wadsworth, did...
Perales GOP opponent indicted for extortion and coercion
Perales GOP opponent indicted for extortion and coercion

Former Republican statehouse candidate Jocelyn Smith, 36, of Fairborn, was indicted on felony and misdemeanor counts related to alleged threats she made during her campaign against State Rep. Rick Perales, R-Beavercreek, during this year’s GOP primary, according to Greene County Common Pleas Court records. Smith faces a third-degree felony count...
Ohio Democratic voters surged for primary, Husted reports
Ohio Democratic voters surged for primary, Husted reports

Democratic Party voters more than doubled Republicans in party-switching and overall voter affiliation growth for Ohio’s 2018 primaries. Republican Secretary of State Jon Husted released voter data Thursday tracking changes for the May primary. RELATED: Trump may factor into Ohio governor’s race In 2016, Republicans had outgained Democrats...
Springfield commission increases tax incentives
Springfield commission increases tax incentives

The Springfield City Commission made it cheaper in some parts of the city to build or upgrade property. The commission approved offering 100 percent tax-relief to community reinvestment areas throughout the city on new and renovated residential properties for up to 15 years, Springfield Mayor Warren Copeland said. “We are trying to find ways...
Congressman Turner discusses immigration issue on WHIO: Audio
Congressman Turner discusses immigration issue on WHIO: Audio

Congressman Mike Turner met with President Donald Trump last night, along with other Republicans, to discuss the separation of parents and children at the U.S.-Mexican border. Turner says a bill is moving through the House to “end that practice.” He said it would not bring back “catch-and-release,” which he called a ...
More Stories