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Galion council suspends rules and adopts Ordinance 2025-21 to allow lender assignment of CRA agreement
Summary
The Galion City Council voted unanimously to suspend the rules and adopt Ordinance 2025-21, authorizing a limited assignment of a Reinvestment Area (CRA) agreement to a lender for a private redevelopment project after staff and the law director negotiated language acceptable to all parties.
The Galion City Council voted unanimously Tuesday to suspend the rules and adopt Ordinance 2025-21, allowing a limited assignment of a Reinvestment Area (CRA) agreement to a lender tied to a private developer’s financing.
Council members said the change was necessary to enable the developer’s lender to take the CRA agreement if the new limited liability company that holds the project could not perform. "I would like to suspend the rules and, pass 20 25 dash 21," Council Member June George said during the meeting. The motion to suspend the rules was seconded by Council Member Palmer and carried on a roll call vote.
The ordinance implements an assignment mechanism that city staff and the law department negotiated with the lender. Service Director Nikki Ward and Law Director Baer described several days of review and negotiation to ensure the assignment complied with Ohio law while being acceptable to the lender. Baer told the council that an "unlimited assignment" originally proposed would not be acceptable because it would leave no recourse if the new LLC failed, so the language was narrowed to a limited assignment to the lender.
Council Member Richard moved to adopt Ordinance 2025-21 on final reading; Council Member Juncker seconded. On the roll call for final passage, Council Members Richard, Juncker, Ault, Watkins, George and Palmer voted yes; the motion carried and the ordinance was adopted.
City officials described the practical purpose of the change as allowing the project's lender to step into the CRA agreement as a way to secure financing without creating an open-ended assignment that could transfer the city's obligations without limits. The transcript identifies the parties to the underlying agreement as Clyde Gavin/Townley LLC and Conklin's Carter Cross LLC and its lenders.
No written dissent or abstentions were recorded at the meeting. Council did not provide additional details in the meeting about the developer's construction schedule, the dollar value of incentives under the CRA agreement, or specific lender identities; those items were not specified in the discussion.
The council's action allows the service director to approve the amended CRA assignment document on behalf of the city, as referenced in the ordinance and accompanying motion. The council did not set a separate follow-up public hearing on the assignment.
Votes at a glance: Ordinance 2025-21 — suspended rules and adopted on final reading; roll-call recorded yes votes from Council Members Richard, Juncker, Ault, Watkins, George and Palmer; outcome: approved.
Looking ahead, city staff indicated the next steps are administrative: finalize the assignment documents and meet with the developer and lender as needed to complete the financing process.
