Xenia council approves leaseback for Market District parcels, authorizes Church Street grant application

Xenia City Council on Sept. 25 approved a leaseback arrangement with the Xenia Community Improvement Corporation that will let city employees continue managing leases and receipts for properties being transferred as part of the Xenia Market District redevelopment, and authorized submitting a federal funding application to Miami Valley Regional Planning Commission for Church Street improvements from West Main to North Detroit. The council voted unanimously on both items.

The leaseback lets the city continue billing current lessees and receiving lease payments after title transfers so that property management and financial functions continue without interruption, city manager Merriman told council. Merriman said the Community Improvement Corporation (CIC) has been designated as the development agent for the Market District and must hold ownership of the redevelopment parcels to enable use of a TIF mechanism referenced in the meeting materials. Merriman said the first phase of property transfer is expected in late October or early November.

Merriman said the arrangement preserves continuity: “the city will continue invoicing the lessees, will be provided with the lease payments to offset the various costs associated with site management,” and will work in concert with the Dillon Group on property management tasks. Law director Danette (last name not given in the meeting) confirmed the lease interest in existing leases will remain with the city rather than being transferred to the CIC.

Council also approved a resolution authorizing the city to apply to MVRPC’s Transportation Improvement Program for Church Street reconstruction and related pedestrian and safety improvements tied to the Market District’s anticipated full build-out. Merriman told council the Church Street proposal includes pavement, ADA ramps, median adjustments, enhanced parking and crosswalks developed with staff and redevelopment partners; the city had applied previously and was next in line for funding.

Both items passed on unanimous roll calls. The leaseback resolution passed after a motion by Councilman Reynolds and second by Councilwoman Sarris; the MVRPC application was moved and seconded similarly.

The council packet notes that the city previously transferred several properties to the CIC by ordinance in August 2024 to enable redevelopment; the leaseback is framed as a pragmatic step to maintain operational continuity as title transfers are completed. Merriman said the transfer timeline would inform the implementation schedule for the leaseback and any required adjustments to property management contracts.

Council and staff did not adopt any changes to underlying lease terms during the meeting; the action was limited to authorizing the lease agreement and the grant application. Council indicated interest in continuing oversight as the transfers proceed and asked staff to bring any material changes back to council for approval.

The approvals leave in place related dependencies: completion of property transfers to the CIC (expected late October/early November) and award of MVRPC funds for Church Street. If the MVRPC application is funded, staff said it will coordinate any required utility or right-of-way work in advance of pavement construction.

Councilors and staff said they would provide updates to the council as transfers and grant-award decisions progress.