What's next for Central Connections? Middletown is trying to decide

Oct. 24—MIDDLETOWN — City and business leaders have started the task of figuring out future plans for the city-owned Central Connections, a senior citizens and event center.

The goal of the task force, according to City Manager Paul Lolli, is to create a plan for the property at 3907 Central Ave., then present legislation to City Council for approval. It appears Mayor Nicole Condrey is the only council member in favor of selling that building that the city recently purchased with $1.8 million of American Rescue Plan Act (ARPA) funds.

While sticking a "for sale" sign in the ground is a possibility, Lolli wants to keep "critical mission" services for seniors operating at the center, while trying to find someone to lease the building and operate the event center.

The city hired Antoinette Coleman as administrative assistant in the Development Services Department to support senior center operations, according to a city records. Coleman is paid $22.34 an hour.

Lolli said the "end game" goal is for the city to get out of operating the center.

The $1.8 million purchase price, which is $300,000 less than the property was appraised by the Butler County Auditor's Office before the $1.5 million renovations, was paid to Middletown Senior Citizens Inc., the owner of the property, Lolli said.

Lolli said that non-profit owes about $700,000 to First Financial Bank and $300,000 to the IRS. On July 29, 2022, Diane Rodgers, then executive director of the center, signed a mortgage loan through First Financial Bank for $450,000, then does a loan modification that increases the amount to $650,000, according to the Butler County Recorder's Office.

On May 5, 2023, D.E.R. Development Co. filed a lien against Central Connections, saying the company is owed $266,594.52, plus allowable interest.

Lolli said there are numerous other outstanding debts.

If those debts exceed $1.8 million, Central Connections board members have told Lolli they plan to liquidate some of the personal property assets, possibly in an auction.

Several people at the meeting believe Central Connections, under the right management team, can be a profitable business. The most vocal was Bob Nolan, a business consultant and tax specialist who toured the building on Monday.

He called the event center "a gold mine for someone to open" and said there are "millions" of potential revenue dollars sitting there.

Later in the meeting, Nolan said the center could be "a shining star" in the city because of the potential to host events and meetings and rent office space.

The group seemed to agree that there are two business opportunities: provide services to the seniors and operate the event center.

Dave Pearce, a community volunteer, asked how any seniors are using the center. Jackie Phillips, the city's health commissioner who has overseen daily operations at the center, estimated between 70 to 150 members attend for exercise, socialization and health screenings.

There also was discussion about moving the seniors to a smaller building.

The next meeting has been set for 3 p.m. Monday when the group will tour Central Connections.

Central Connections found itself in financial difficulty after Rodgers was terminated in July. She is under investigation for possible theft, though no charges have been filed, according to Middletown police.

This is the second time Middletown residents have invested in the center. Voters approved two five-year, 1-mill senior levies that generated $7 million to provide or maintain senior services at the center. The levy expired on Dec. 31, 2022 after 10 years.

Counting the $1.8 million purchase price, $8.8 million in taxpayers' money has been spent on the center in the last 11 years.

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POSSIBLE OPTIONS FOR CENTRAL CONNECTIONS — Sell the property for an estimated $4.5 million to $5 million. — Send out requests for proposals to determine if there is interest in a catering business leasing the building from the city of Middletown and operating the senior and event center.

Central Connections: A timeline

Nov. 6, 2012: Middletown taxpayers pass a five-year, 1-mill levy to provide or maintain senior services at the Middletown Area Senior Center.

Aug. 16, 2015: The name of the Middletown Area Senior Center is changed to Central Connections.

May 2, 2017: Middletown taxpayers renew a five-year, 1-mill levy to provide or maintain senior services at the center.

November 2021: Diane Rodgers is hired as executive director. She says she moved from Reno, Nev., where she oversaw a senior center and worked with the homeless population, to be closer to her daughter who lives in New York.

July 29, 2022: Rodgers signs for a mortgage loan through First Financial Bank for $450,000, then does a loan modification that increases the amount to $650,000, according to the Butler County Recorder's Office. Her signature and job title are listed on the loan that matures on July 29, 2024.

Nov. 1, 2022: Ribbon-cutting is held to celebrate the $1.5 million in renovations of Central Connections, 3907 Central Ave.

Dec. 31, 2022: Senior citizens center levy expires after generating $7 million over 10 years.

May 5, 2023: D.E.R. Development Co. files a lien against Central Connections, saying the company is owed $266,594.52, plus allowable interest.

May 31, 2023: Rodgers files vandalism report at Central Connections. Middletown police say that leads to the investigation of center's finances.

July 24, 2023: The Council on Aging terminates its three-year contract with Central Connections. Fifty employees are laid off.

July 25, 2023: Nearly 75 senior citizens and former and current employees of Central Connections attend a meeting in the café with Rick Fishbaugh, board president, and Rodgers.

July 27, 2023: Rodgers is terminated as executive director of Central Connections and escorted out of the building by Middletown police.

Aug. 3, 2023: During a special City Council meeting and after an executive session, City Manager Paul Lolli announces council has agreed to move forward with the possible purchase of the Central Connections building and land and for an unknown amount that will come out of the city's American Rescue Plan Act (ARPA) fund.

Aug. 5, 2023: In an email to the Journal-News, attorney Tyrone Borger, who is representing Rodgers, writes that he and his client have been "informed that there is an ongoing investigation. As such, while my client would like to comment and clear up several misconceptions. She is taking my advice and refusing to comment on any allegations at this time."

Aug. 9, 2023: Middletown Police Chief David Birk says his department is working with the Ohio attorney general's Bureau of Criminal Investigation into the criminal investigation into the finances of Central Connections.

Aug. 11, 2023: Central Connections announces more layoff and the closing of the cafe and bar. The hours are reduced to 8:30 a.m. to 4:30 p.m. Monday through Friday.

Aug. 15, 2023: City Council votes unanimously to allow City Manager Paul Lolli to enter into a lease agreement with Central Connections. The lease is $50 per month. By the end of 2023, the city has the right to purchase the building and property for $1.8 million.

Aug. 21, 2023: Vincent "Scott" Smith, husband of the former executive director, arrested and charged with seven counts of passing bad checks, all felonies.

Aug. 23, 2023: Smith appears in Middletown Municipal Court for his arraignment. Judge James Sherron sets Smith's OR bond at $5,000.

Sept. 6, 2023: A Middletown detective testifies that Smith's signature on the seven bounced checks doesn't match his signature on a court document. The charges against Smith are bound over to a Butler County grand jury by Middletown Municipal Court Judge James Sherron.

Sept. 19, 2023: Middletown City Council authorizes city manager to enter into an agreement to purchase Central Connections property for $1.8 million, using ARPA funds.

Oct. 4, 2023: A Butler County grand jury declines to indict Smith of passing bad check charges.

Oct. 12, 2023: City of Middletown closes on the purchase of Central Connections.

Oct. 23, 2023: City hosts the first discussion with business leaders regarding the future of Central Connections.