Elyria officials consider law firm for economic development

ELYRIA — Elyria is bringing on a law firm in the hopes of spurring new economic development along the city's main corridors. At a virtual meeting Monday night, the Community Development and Finance Committees approved contracting McDonald Hopkins LLC for economic development matters, particularly around Midway Mall. Mayor Frank Whitfield said it's part of a broader economic recovery plan to help the city come out of the pandemic better than before. He said McDonald Hopkins will provide a specialized legal view when it comes time to make economic decisions. "Midway Mall was struggling before the pandemic; our retail was struggling before the pandemic," Whitfield said. "So, we can save some of the energy other communities spend to save things. We can spend all those energy and resources on creating what's new." Some of the things the law firm could help with are eminent domain, tax increment financing and general municipal law. Although the city already has a law department, Whitfield said staff there don't typically specialize in economic development areas. Committee members approved using the firm at a cost not to exceed $200,000. Where that money would come from depends on what McDonald Hopkins does, Finance Director Ted Pileski said. If the firm helps at Chestnut Commons, then some of that TIF money could be used to pay the firm. Dollars could also come out of Issue 6 economic development funds. Working with a firm like McDonald Hopkins can help attract and incentivize businesses to come into the community, Whitfield said. He has had discussions around putting tax increment financing into downtown Elyria in the hopes of incentivizing expensive renovations to old buildings. Tax increment financing is a tool to finance public infrastructure through property taxes. McDonald Hopkins wouldn't be used until needed, Whitfield said. Council President Vic Stewart, D-at large, said the experience McDonald Hopkins has in economic development presents an opportunity for the city. He said Council members are excited about the prospect of bringing them on. Utilizing a partnership with the law firm and the connections it has can spur growth and development around Elyria, Stewart said. "That's an important focus for us," he said. "It should be, always. We know what's looming with Bendix and we can't rest. They're no longer going to be here, so we need to be proactive in looking at opportunities." Bendix Commercial Vehicle Systems Inc. is one of the city's largest employers, and is scheduled to leave Elyria for Avon in 2021. Pileski has estimated the city will lose about $1.5 million in income tax per year once it's gone. At Midway Mall, Whitfield said it was his mission coming to the mayor's office to get something accomplished with the mall region. Using a specialized law firm can help the city move forward at the mall, he said. Currently, two different owners hold a majority of the property at Midway Mall. Industrial Commercial Properties owns the former Dillard's, former Sears, former Sears Auto Center and Red Lobster. Namdar owns the other chunks of the mall, including the food court. Industrial Commercial has developed a track record of developing dying or abandoned areas. It turned Randall Park Mall into an Amazon fulfillment center, and recently bought the former Geauga Lake amusement park to turn into a housing development. Both Whitfield and former Mayor Holly Brinda have said Namdar hasn't done enough to help recover the mall and its surrounding areas. Whitfield said with an experienced law firm lending support the city can continue to focus on renewing the Midway area, including evaluating how the mall can be used for something other than retail. Whitfield said they are currently looking into rezoning the property so that it can be fit for other uses than retail. "The mall is not a neutral site," he said. "If the mall is failing, it impacts the housing around it; it impacts the restaurants around it, or the lack thereof; it impacts other shopping centers. It's not just a neutral site. Something has to happen there." Hiring on the law firm still must be approved by the full Council, which will meet virtually at 7 p.m. Dec. 7. The meeting will be streamed to the city's YouTube page. Contact Laina Yost at (440) 329-7121 or lyost@chroniclet.com.