A commercial building and property improvement grant of more than $45,000 requested by the owners of the Cherry Tree Plaza shopping center in Washington is back on the table.
The Washington City Council last month rejected the grant, with the objectors expressing concerns that taxpayers' dollars would be used to benefit Cherry Tree's out-of-state owners and property management firm.
The grant was back up for discussion Monday at the request of some council members, after Justin Paul of Florida-based property manager American Commercial Realty Corporation flew in at the last minute to join the talks.
Paul said two well-known national retailers are interested in a soon-to-be-vacant 25,000-square-foot space, formerly occupied in part by the Get Yourself Motivated [GYM]. Paul said the grant is a necessary factor in the recruitment.
The grant would fund half of the estimated $90,800 project cost of improvements to the space.
If one of the national retailers goes into space, Paul said, it will take at least another $1 million from the shopping center owners to get the space ready.
Several council members said they want assurances from Paul's firm that the space will be filled before releasing the grant money, and asked that language to the effect is added to the grant resolution.
"Guardrails," was the term Alderperson Brandon Moss used in calling for the protections. "I want our taxpayers to get value in return for their money."
"I really support businesses that generate sales tax revenue," added Alderperson Paula Johnson. "But I do think it's our job to be very mindful of that fact that these are taxpayer dollars that are being used, not a magical pot of money."
Alderperson Mike McIntyre said even if neither national retailer moves into the shopping center, the work proposed to be done would add value to the targeted space.
Asked by Alderperson John Blundy wondered why a $45,400 grant is so important compared to a possible future seven-figure investment in the space, Paul said "every dollar counts" when it comes to his recruitment of the national retailers.
"It's no small feat to have two national retailers interested in the space. It's not typical for them to go into a community of Washington's size," he said.
Paul said the 12,000-square-foot east side of the retail space has been vacant for eight years, "but not from a lack of effort, trust me." That portion of the building was renovated with help from a $50,000 commercial improvement grant from the city last year.
"I'm paid to fill that space. I've been to every single town within a four-hour radius of Washington trying to find someone to fill the space," said Paul.
"I know this is a chicken-and-egg thing, but I don't want that space to sit vacant for another five years."
