Council advances $324,925 redevelopment appropriation after debate over Sears building costs and insurance

The Columbus Common Council on May 6 approved on first reading an additional appropriation of $324,925 from the Redevelopment District General Fund (Fund 4451) to cover expenses tied to the city’s ownership and interim maintenance of the former Sears building.

Redevelopment staff and city administration briefed the council on the request. Heather (Redevelopment staff) said the fund pays rents, utilities and maintenance for the Sears building while the city awaits the completion of the Downtown 2030 study to establish a long-term use. She said remediation from a pipe burst in 2024 resulted in a January payment to SERVPRO of $87,027 to avoid a lien on the property; that claim was still in insurance-reimbursement processes but the $25,000 deductible was a sunk cost, she said. Staff requested an additional $25,000 repair contingency and $71,728 for facilities maintenance trending to an annualized cost of about $272,000, plus $116,000 to cover property taxes that became the city’s obligation after the May 2024 closing.

Heather described Fund 4451 as the Redevelopment District General Fund supported by interest on TIF funds and rental income from the YaaS Cinema; she said projections still show the fund with an approximate $2.7 million year-end balance after the appropriation and known commitments.

The item drew extended council discussion and several public commenters. Multiple speakers pressed the city’s decision-making and oversight: one public commenter said the council should not protect those who “pushed it all forward” and urged that private parties who “made this mess” should be made to fix it. Council members sought clarification on insurance coverage; staff said the existing policy did not cover flood for the event and that the city had paid SERVPRO in January. Council members asked whether vacancy riders or different underwriting could have avoided the outcome and whether an occupancy strategy — even short-term leasing or placing staff in the building — would improve insurability.

Council members also discussed process and oversight: several asked that the Redevelopment Commission proceed to issue an RFP for disposal of the property after the Downtown 2030 plan is complete and indicated a goal of publishing an RFP by the end of the year. The city controller cautioned against making appropriations contingent on future sales because legally the city must appropriate funds to pay taxes and bills when due.

Despite the concerns, council members concluded that the taxes and remediation must be paid and moved the appropriation forward; the ordinance passed first reading by roll call 8-0. Staff said Servpro had already been paid in January and that the appropriation will reimburse or cover upcoming bills from the redevelopment fund.