Highland County land bank board awards building demolition bids, hears update on brownfield grants

After submitting applications for the state’s Brownfield Remediation and Building Demolition and Site Revitalization grant programs in the spring, the Highland County Land Reutilization Corporation (land bank) has “finally” received word on all but one project, as discussed at their Thursday, Nov. 21 meeting. The agenda included awarding bids, which were opened back in July, for the building demo program.

Thursday marked the board’s first meeting since September, as the October meeting was canceled while they continued to await grant awards from the state.

“We've been waiting a while, but we finally got the awards,” land bank board president Terry Britton said. “We can move forward with at least three of those [brownfield] projects. With the awards that we've got for the housing situation, that’s a pretty good shot in the arm for the county as far as getting rid of some of this blight.”

As previously reported, the HCLRC submitted 41 properties for the state Building Demolition and Site Revitalization grant program. On Nov. 4, all 41 projects were approved for a total of $500,000.

Prior to awarding the bids Thursday, the board voted unanimously to agree to extend the completion date for the demolition projects to May 1, 2025, at land bank coordinator Jason Johansen’s recommendation. According to Johansen, the Ohio Department of Development’s current deadline for all filings is May 1.

“Our bid packet originally had said that that would be for the end of the year, December 31 of this year,” Johansen said. “We did these bids back in July. We kind of expected the money to come this summer. We just were awarded last Tuesday, I believe, so that that date is no longer attainable, so we would like to extend that into spring.

“We would ask for the contractors to have everything done by April 1, but then the seeding and strawing could take place into April.”

Bids were awarded as follows:

• Bid Package 1 (454 E. Walnut St., 454 E. Walnut St. and 167 Trenton St., Hillsboro): Evans Landscaping, $13,300.

• Bid Package 2 (314 Bigelow St., 727 S. High St. and Lots 6 and 9 at 352 Johnson St., Hillsboro): Reed Mechanical Construction, $25,000.

• Bid Package 3 (264 E. Beech St., 226 E. South St., 625 S. High St. and 112 W. Collins Ave., Hillsboro): Reed Mechanical Construction, $32,145.

• Bid Package 4 (8531 U.S. 62 N, 8701 U.S. 62 N and 4216 South St., Hillsboro): Reed Mechanical Construction, $17,700.

• Bid Package 5 (8264 U.S. 50 E, 8293 U.S. 50 E and 8321 U.S. 50 E, Hillsboro), Evans Landscaping, $15,845.

• Bid Package 6 (6938 Beechwood Rd., 7377 Beechwood Rd. and 5109 Washburn Rd., Hillsboro, and 19 N. Main St., Sinking Spring): JWM Excavating, $26,999.

• Bid Package 7 (222 McClain Ave. and 651 Jefferson St., Greenfield, and 12501 Wilson Rd., Leesburg): JWM Excavating, $27,999.

• Bid Package 8 (419 Market St., 421 Market St. and 11884 S.R. 771, Leesburg): Reed Mechanical Construction, $11,700.

• Bid Package 9 (2580 S.R. 134, Mount Orab/Buford and 2850 U.S. 50 and 2871 Sharpsville Rd., Lynchburg: Rippstein’s Excavating, $23,600.

• Bid Package 10 (205 and 213 S. Broadway St., Lynchburg): Evans Landscaping, $22,740.

• Bid Package 11 (5700 Dawson Rd. - two dwellings, Lynchburg, and 4506 Sharpsville Rd., Hillsboro): Rippstein’s Excavating, $31,300.

• Bid Package 12 (937 N. High St., 644 N. West St. and 6950 Pence Rd., Hillsboro, and 13535 U.S. 50, Bainbridge): Rippstein’s Excavating, $85,300.

For Bid Package 12, Johansen explained that the original low bidder — Shepherd Mechanical Service, who quoted $54,051.50 — had asked to withdraw their bid from July, leaving the Rippstein’s Excavating bid accepted Thursday as the low bidder.

“Those are some hot demos that entails a little bit more asbestos-related work,” Johansen said. “[Shepherd] had undercut that price quite a bit, and they would probably lose money if they were to accept that bid. I had talked with Rippstein’s Excavating. They had two hot demos in Package 11, and they were willing, if approved, to accept that bid.”

For the other state grant — the Brownfield Remediation Program — Johansen announced that three of their four applications have been approved, with the hope that the fourth will also be awarded. Environmental consultant Matt Wagner of Tetra Tech said that the state should be awarding a final round, possibly within the next two weeks.

As announced by the state, the following projects have been awarded:

• $129,628 for the East Monroe Tank Farm at SR 28/Monroe Road, Leesburg. The project involves assessing a former tank farm site that includes both above ground and underground storage tanks. The assessment will include a Phase I property assessment, geophysical survey, asbestos-containing materials survey and a Phase II property assessment to identify any environmental hazards for future remediation.

• $129,082 for a former gas station at 351 East Main St., Hillsboro. This project includes a phase II assessment and geophysical survey to determine contamination at a former gas station and auto service site, with historic use dating back to the 1930s. The assessment will address potential soil and groundwater contamination associated with underground storage tanks, preparing the site for future commercial redevelopment.

• $130,919 for a former machine shop at 204 East Jefferson St., Greenfield. The project includes a phase II assessment and geophysical survey at a former machine shop and auto repair facility, which has potential soil and groundwater contamination from its historic use. Once assessed and remediated, the property will be positioned for commercial redevelopment.

If the fourth application, for the former Rocky Fork Truck Stop, is approved, Johansen said it will be for $482,522 in remediation and $15,000 in administrative costs. The land bank board previously used a grant from the first iteration of the Brownfield Remediation Program on work at that property.

“They wanted a new access agreement from the owner, a new clean hands affidavit from the owner and a letter of support from the Paint Township trustees,” Johansen said. “It's under the review process.”    

Wagner added that the state is planning another brownfield grant for 2025, but instead of each county having a $1 million set-aside plus extra funding available, it will be $175 million available on a “first-come, first-serve” basis.

“We anticipate that guidelines will come out December, with an application coming out somewhere in January,” Wagner said. “I know we've got some potential projects out there that have been talked about quite a bit over the years, but certainly now would be the time, because this is like our last big chance to deal with, tackle, some of these other brownfield sites within Highland County.

“You can request up to $10 million per project, so it's a substantial amount of money that you can obtain, but it does require a 25-percent match commitment, so that's the big part.”

Wagner suggested that they should consider whether there are “developers” who would be interested in getting involved. He also explained that 20 percent of that $10 million can be put toward “infrastructure” costs, while another 10 percent can go toward “acquisition” of the property if needed.

“Again, these are brownfield grants, so you have to keep in mind that you're going to need to follow the rules,” Wagner said. “You'll need to have a VAP (Voluntary Action Program) Phase I (environmental assessment), a VAP Phase II. You'll have to have all of the information to be ready to clean up a property.

“If, in fact, there are projects that are out there, we need to have the backbones to support the application, but we will have one more opportunity through this particular program.”

According to Wagner, groups such as the Greater Ohio Policy Center are advocating for legislation to provide additional —albeit smaller — cleanup programs in future state budgets, “but this is the last time where we're going to have this really robust dollar amount.”

In other discussion:

• The board accepted a piece of forfeited land, valued at $300, on Bigelow Street in Hillsboro. According to Johansen, a request was made by a neighboring property owner.

“It's forfeited land that went through tax foreclosure in 2015 and did not sell it at two sheriff’s sales,” Johansen said. “We can transfer this to the land bank with no survey, but upon selling that, it would get a warning stamp, and upon selling that we  would need to require a survey. We can ask or speak with the adjacent owner, see if he’d be willing to pay that.

“I believe it would fit into our side lot program, just based off what I can see on the auditor’s website. The legal description doesn't exactly give acreage amount, and I know that our policies are based on acreage, but just by the looks of it, it does look like it would just be a side lot, kind of landlocked.”

The land bank board’s attorney Todd Book added it’s “just what’s left” from the sale of two city out-lots.

“There’s not much space there,” he said.

According to Johansen, the adjacent property owner is interested in buying the land to expand his own home.

“One of our specialties is to get these forfeited lands into the land bank and try to get them back into the tax base,” Johansen said.

• In his legal/compliance report, Book asked the board for their thoughts on purchasing tax liens.

“I think it could be a valuable tool for us, and I think maybe it could be something that could be used to move some people off the bubble that are hovering,” board member David Daniels said. “I would move that we go ahead and proceed with that.

“If we have places that we have identified that maybe we find value in doing this, we can bring them forward and then approve the purchase of those at a regularly scheduled meeting.”

Daniels asked Book if purchasing liens could help them obtain access to brownfield projects where they’ve “had trouble with probate” court in the past.

“When it comes to tax lien, you're not really acquiring the property,” Book said. “But in some situations where you have somebody that maybe unwilling to just give the property, maybe, if there was a possibility for a little bit of money.”

Wagner pointed out that this far into the brownfield program, “you’re getting into the real complicated sites,” and that is “why [the state] allowed 10 percent to be allocated toward acquisition.”

The board voted unanimously to approve the motion to pursue purchasing tax liens.

Book also reported that 125-1/2 West Main Street in Leesburg, a parcel for which the village had wanted the HCLRC named as receiver, has been sold without land bank involvement.

• The board authorized a request from Johansen to open a credit card for land bank expenses, with an amendment made by Daniels to “adopt the same credit card policy that the county has that conforms with Ohio Revised Code requirements for public entities.”

Johansen said he wanted the credit card for ordering office supplies and for other expenses, such as travel and conferences, which he said he currently covers with his personal card and is later reimbursed.

• The board approved a new lease agreement for the land bank office, moving from the Scott House to “The Hive” at the Hillsboro Business Complex, 129 North High St., suite E.

“The move would actually state the way in bank roughly $60 a month,” Johansen said. “The Hive comes with Wi-Fi included, and the rent would be $550.”

• The board approved the financial reports for September and October as presented by Johansen. The HCLRC began September with a balance of $413,380.22 and concluded October with $437,920.32. Deposits included credits for the sale of a property on U.S. 62, for the 2024 second-half real estate tax settlement and a a reimbursement from the Department of Development for three demolition projects.

Expenses during those two months included salary/expenses, office supplies, legal and advertising fees, asbestos abatements and other environmental work, landscaping, rent and a payment for the sewer/grinder on an Elmhurst Trail property.

• The board authorized Johansen to pay a list of unpaid bills, totaling $27,059.64. That included environmental work, advertising and legal fees, lawn maintenance, rent and sewer and HOA fees, as well as Johansen’s salary and expenses.

• At the end of their regular agenda, the board voted to enter an executive session “to consider the appointment, employment, dismissal, discipline, promotion, demotion or compensation of a public employee or official.”

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