Midwest City Council approves transfer of up to $9.25 million to Urban Renewal Authority to advance Heritage Park Mall acquisition

Midwest City Council on April 22 authorized a transfer of $9,248,155 from the Midwest City Memorial Hospital Authority to the Midwest City Urban Renewal Authority to advance the possible acquisition and cleanup of Heritage Park Mall.

City staff and outside counsel told the council the commissioners’ report set the building value at $6,710,000, with an estimated additional $200,000 for moving expenses and roughly $12,000 in commissioners’ fees, putting the escrow deposit between $6.9 million and $7.0 million. The remainder of the $9,248,155 allocation is intended to cover demolition, environmental testing, hazardous-material handling and related fees.

"The number is $6,710,000 for the building itself," said city counsel Don, reporting the commissioners’ award and the attorneys’ guidance about next steps. He said the city’s outside counsel recommended absorbing the $200,000 moving‑expense allowance rather than contesting it because that would remove an argument the property owner might use in litigation.

Council members pressed staff on several fronts. One council member asked whether hazardous materials stored in the mall would require emergency responders or special contracting; staff replied that the city would hire a hazmat team and that hazardous‑waste disposal may require transport to the sole state hazardous‑waste landfill in Major County.

City staff said the escrow deposit will be placed with the county court clerk, as required under the Urban Renewal Act procedures, and that if the property owner files a challenge the legal process (including potential jury trial) and associated time frames would dictate when, and whether, the city moves from escrow deposit to demolition or redevelopment.

Staff described a range of outcomes if a challenge proceeds: if a court award exceeds the commissioners’ amount by more than 10%, the owner would be awarded that amount plus the city could owe the owner’s attorney fees; if the award is at or below 10% above the commissioners’ figure the city would seek the owner’s payment of the city’s attorney fees. Funds placed in escrow would be returned to their origin if order of court requires.

City officials said there is no final redevelopment plan for the site at this time; the immediate purpose of the transfer is to start the statutory timeline for the owner to respond and to allow the Urban Renewal Authority to hold the funds required to begin condemnation/purchase procedures if no successful legal challenge is mounted.

The council motion to transfer the funds carried after debate; staff directed the city public information officer to coordinate any public messaging and said the council should limit public comment about pending legal matters to official actions.

What happens next: staff said the city will inventory items at the property, contract for hazardous‑materials abatement or removal if needed, and follow the court and procurement processes (public bids for demolition or remediation) before any demolition begins. Council members were urged to refrain from public comment that might affect ongoing or potential litigation.