Mills Family Realty, the company that operates the commercial wrap of the parking garage, known as Hitcents Park Plaza in Block 6 of the Tax Increment Financing District, disputes the amount of money owed for construction of the development and says it is still owed TIF revenues from government entities.
The company issued a news release this afternoon laying out more fully its perspective on issues related to the development and ongoing negotiations to settle liens and bring in new management for the development.
Mills Family Realty, according to the news release, has provided the city of Bowling Green with all its financial records so a complete audit of transactions could be done.
"Every dollar of bond money spent by MFR can be accounted for," the news release states.
Hitcents Park Plaza has had financial problems for months, and liens were filed on the property for money allegedly owed to contractors in its construction. Mariah's restaurant and 6-4-3 Sports Bar closed “until further notice” nearly four weeks ago. Three fast-casual restaurants in the wrap were shut down in September.
The news release from Mills Family Realty states that the company has been hesitant to issue public statements about the project.
"However, in the time since liens have been filed against the property, the media has reported information from a single perspective, which excludes important facts and which has painted MFR in an unfairly negative light," the news release states. "At this time, we feel it is important to share certain facts with the public. MFR continues to work hard to negotiate a deal that is in the best interest of the citizens of the City of Bowling Green and Warren County."
Mills Family Realty disputes the balance owed for construction of the development and has requested additional documentation dating back to August, according to the news release. As of today, that documentation had not been provided.
The company also says that there were "numerous communications" due to lack of quality and timeliness in construction of some parts of the project, including communication sent in October regarding water leakage issues.
"On February 21, 2015, major flooding occurred at the property due to construction errors, which required the temporary relocation of all office tenants and which resulted in over $1.2 million dollars in damages," according to the news release.
The news release states that the total liens placed on the property, $2.4 million, includes amounts duplicated in other liens.
Mills Family Realty also states in the news release that TIF revenue of about $438,645 is owed to the company from different government agencies.
Most aspects of the wrap project – such as architectural drawings, construction price, the developer and the construction company – were selected before the Millses were asked to be involved in the project, according to the news release.
The news release also states that in November 2012, $844,200 was transferred out of the bond fund to a government agency and that agency hasn't explained how those funds were used.
The money has not been repaid, according to the news release.
Clinton Mills of Mills Family Realty declined to specify which public agency was involved in that transaction.
The closing of Mariah's and 6-4-3 in the wrap recently was necessary after negotiations showed no progress, according to the news release.
"The time, energy and money being spent on a day-to-day basis for the restaurants could no longer be justified," the news release states.
The Bowling Green City Commission will have a special-called meeting at 1 p.m. Monday to discuss Hitcents Park Plaza.
In addition to hearing presentations from representatives of Warren County government and the Warren County Downtown Economic Development Authority on Monday, the City Commission will also consider several other issues.
One of those issues is the allocation of the city's 2013 incremental revenue for the TIF district. The total incremental revenue growth of city revenues in the TIF district in 2013 was $466,372, according to a city municipal order.
Of that money, 80 percent, or $373,098 is allocated to the Warren County Downtown Economic Development Authority, with the rest remaining with the city.
Within that 80 percent allocation to the Authority, $25,118 will go to U.S. Bank as the trustee for industrial revenue bonds to fund the construction of Hitcents Park Plaza. The city will retain another $32,222 as its share of those TIF revenues.
A significant amount of the incremental growth seen in the TIF district was generated from construction wages in Blocks 6 and 12, Chief Financial Officer Jeff Meisel said in a memo.
"However, the already existing employers within the district such as BGMU, Chamber of Commerce, Medical Center, numerous doctors and healthcare providers, and particularly Graves Gilbert Clinic, provided for the majority of the growth in the District," he wrote.
— Follow government beat writer Katie Brandenburg on Twitter at twitter.com/BGDNgovtbeat or visit bgdailynews.com.
