Forest Fair redevelopment hits a snag in Butler County

Butler County’s land bank is balking at the latest plan to demolish Forest Fair Mall so an industrial park and retail complex can replace it.

That’s because a key tenet of the plan is to use Butler County’s demolition grant to tear down buildings in Hamilton County.

“If there’s not going to be a benefit for Butler County and Butler County taxpayers, then I think there are options on the table, which may include directing the money to other projects in the county,” said Butler County Treasurer Michael McNamara. He also serves as chairman of the Butler County Land Reutilization Corp., better known as the land bank.

“The vision on this property has changed,” McNamara said. “And the developer has changed. So, it’s a different project today than it was when this grant was earned. And there are other potential projects that may yield more jobs, better property value or just a better lifestyle benefit for Butler County.”

Graphic by Maddy Schmidt

The land bank secured a $7.9 million grant in 2022 from Ohio’s Demolition and Site Revitalization Program. The grant requires $2.5 million in matching funds from the mall’s owner and the money must be spent by 2025 or state officials can reclaim it.

Developer Rob Smyjunas, who has a purchase option on the 90-acre mall property, met with land bank board members last week in executive session. He did not secure a promise that the demolition grant will be assigned to his project. The land bank’s next scheduled board meeting is August 12.

“The Butler County Land Bank Board of Directors approved this project in February of 2022 with the expectation of job creation and the removal of blight, including the parking garage that sits almost exclusively in the city of Fairfield,” Executive Director Seth Geisler said. “For us to move forward with the project and a new potential sub-recipient, I foresee (the board) expecting the same out of the new site plan.”

In interviews last week, Smyjunas told the WCPO 9 I-Team the Fairfield garage cannot be torn down until the bonds that financed its construction are paid off. He also thinks the 2,700-car garage could be renovated as part of a later development in Butler County.

The 20-acre portion of the mall that lies in Butler County also includes a Kohl’s department store, which has lease rights that could be used to block the entire project.

Smyjunas is pursuing a strategy that delays action on Butler County parcels, while generating new tax revenue in Hamilton County to fund the entire development.

Smyjunas wants to clear the 70 acres of buildings that lie in Forest Park so he can build three industrial flex buildings that house light-manufacturing and office tenants and a 20-acre retail complex that includes a 120,00-square-foot grocery store.

Smyjunas wants to create a new tax-increment financing district to capture property taxes from the Forest Park site. That would enable him to negotiate a separate deal with bondholders, who are still owed $10.5 million in debt from a 2004 expansion.

The new TIF arrangement would have to be approved by two Hamilton County school districts: Winton Woods and Northwest. Winton Woods has said it’s open to the idea but needs more detail before signing off.

Smyjunas is trying to finalize those details in a development agreement with the city of Forest Park. But those talks aren’t moving quickly. City Manager Don Jones has pushed the developer to include job creation promises in the deal and fewer tax incentives.

“There’s so many things that need to come together at the same time, but we believe we’re going to be successful,” Smyjunas said. “It’s just a matter of timing. That’s what scares me about it, getting all of it done in time.”

Smyjunas wants to start demolition this summer so he can spend the demolition grant before it expires. The land bank said it’s possible to get an extension on the grant, but its board might be more willing to do so if they see a clear benefit for Butler County.