Staying with the story
The Springfield News-Sun will continue to provide unmatched coverage of business and jobs in Clark and Champaign counties. The paper has covered problems at the abandoned Q3 JMC Inc. site for years, including plans to redevelop the site and thousands of dollars in delinquent taxes owed at the property.
By the numbers:
3 years — How long Urbana has worked to redevelop the site
$3 million — Estimated cost to clean the property
$1.5 million — Local funding, with assistance from Honeywell
Urbana’s nearly three-year effort to redevelop the abandoned Q3 JMC Inc. site hit a speed bump but at least two businesses have expressed interest in the site and could bring up to 150 jobs.
City leaders said they can still move forward with a plan to take over the site after learning it won’t qualify for an expedited foreclosure. But first it must pass through a traditional sheriff’s sale process. That leaves no time for further surprises or delays, because portions of the contaminated site must be cleaned up by November, Urbana Mayor Bill Bean said.
At least two companies have expressed interest in investing in new facilities and could create between 120 to 150 jobs, said Marcia Bailey, economic development director for the Champaign Economic Partnership. Cleaning the abandoned site would also eliminate a long-standing eyesore, she added.
JWP Inc., an Urbana manufacturing firm, has interest in the property and a second, unnamed firm has also expressed interest, Bailey said. But both deals could fall through if the city can’t acquire the site and remain on schedule to clean the property.
JWP officials couldn’t be reached after the meeting for additional comment.
“It’s not going to happen if we don’t get this thing done this year because (JWP) could walk away from it, and if they end up walking away from it we’re going to walk away from it,” Bean said.
Urbana officials had planned to take over the site with an expedited foreclosure, a process through the Champaign County Board of Revision that would allow the city to control the site while not being required to repay more than $200,000 in delinquent taxes.
But local officials recently discovered the site will not qualify for that process after an appraisal that showed the site had more value than expected, said Kevin Talebi, Champaign County’s prosecutor. Instead, the site will have to pass through the traditional sheriff’s sale process.
The city can take over the property if no buyers make a qualifying bid on the site’s 26 parcels during a sheriff’s sale, which is expected to take place by Sept. 12.
City officials said Tuesday they were shocked to learn the property would not qualify for an expedited foreclosure so late in the process.
“To sit here now and say, ‘Sorry, we lost the last four or five months,’ the whole thing bothers me,” said Kerry Brugger, Urbana’s director of administration.
Still, the county has to follow state law, Talebi said.
“As frustrating as it might be, it’s moving forward as fast as it can move forward,” Talebi said.
The roughly 20-acre Q3 property at Miami and Beech streets has been vacant since 2008. There are also several areas at the property with contaminated soil and groundwater, making it unlikely the site can be redeveloped without an environmental cleanup process estimated to cost as much as $3 million.
In the meantime, city officials have had to deal with numerous theft and trespassing complaints at the site, Brugger said. There are also fire and utility concerns due to water line breaks and a fire suppression system that does not work.
The city has about $1.5 million set aside now, with help from a partnership with Honeywell, a local company with historic ties to the site. Honeywell is not one of the firms interested in expanding on the redeveloped property, said Doug Crabill, community development manager for Urbana. Part of the property was once owned by Grimes Aerospace, a predecessor to Honeywell.
About $1.4 million more will also be needed to complete the cleanup, and the city will likely seek grants and loans from sources like JobsOhio and the Ohio Water Development Authority.
The minimum bid on the site will be $268,379 at the sheriff’s sale, Talebi said. But the he believes its unlikely the site will receive any bids.
If there are no bidders, the city can still take over the site, but would need to have an additional meeting with the Board of Revision to appeal to have the taxes cleared away. City officials will not move forward with the deal if there is a chance taxpayers will be stuck with paying the delinquent bills, Brugger said.
Despite the delay, Bean said he appreciated Talebi’s explanation and said the city will do what it needs to in order to secure the site.
“I’ve been frustrated with this process for two years,” Bean said. “That being said, I liked (Talebi’s) explanation on how we can get through this and hopefully the window of opportunity doesn’t shrink any more.”
About the Author