Tenants press St. Marys leaders to avoid receivership for Riverview building; city says private sale is preferred

Tenants and residents of the Riverview Partnership building urged the St. Marys City Council to favor a private sale and repairs rather than a costly court receivership, saying the property’s condition and uncertainty have left them living in unsafe, untenable conditions.

A resident who spoke during public comment described failing building systems and health concerns, saying, “We are human beings. We want the building fixed. We want the building sold.” The resident told council the building has no elevator, a failing fire‑alarm system, and tenants with chronic medical conditions and a pregnant resident; she said the property has not been maintained despite rent payments.

City staff member Greg Noble addressed the council to explain receivership and to describe the legal and financial complications with the property. Noble said a receiver is “an out of town real estate agent that is appointed by the court that comes in spends their money and fixes it up... The receiver then their expenses... they get their money first before anybody else.” He said Judge Keppel would not accept a receiver nominated by one party in this case and that several parties have objected because a receivership would consume funds that otherwise would repay lienholders and the city.

Noble outlined the factors complicating a sale: a mechanics lien filed by a vendor (Roto Rooter), a mortgage held by Huntington Bank, the city’s own mortgage and expenditures to repair storefronts, and ownership held by Riverview Partnership where the sole partner is the late Fred Schwab. Noble said the city does not own the building but has promoted it for private sale and is working to get all lienholders to agree to a private sale so proceeds can be divided; he said such a sale would require lienholders to accept reduced recoveries (“take a haircut”) but would avoid the delay and expense of a receivership.

Noble said the city has spent roughly $150,000 repairing storefronts and has an appraisal it paid for; he said the city is accepting offers and that a prospective buyer from Lima had recently looked at the property and might submit a written offer. He told tenants that any purchaser would take the property subject to current leases and that covenants on the building restrict rents for the next three years.

Tenants pressed for assurances about management and repairs. A tenant asked whether the council or city had a specific agenda for the property; the resident said she wanted transparency about the city’s plan and urged officials to prioritize safe housing and the residents’ welfare.

City staff emphasized the goal of returning the building to productive use without incurring the extra cost and delay that, they said, a receivership would create. Noble said a private sale that resolved lienholder claims was the preferred course and that staff hoped to report a buyer in the coming months. Council did not take a formal vote on receivership during the meeting; staff described ongoing negotiations and outreach to lienholders.