Have questions about Spooky Nook sports complex? Here’s your chance to ask them.

Members of City Council will hold a public hearing during Wednesday’s meeting to take comments and questions about Spooky Nook at Champion Mill, the proposed gigantic sports complex and convention center that proponents believe will elevate the economy of Hamilton and Butler County.

As part of the 6 p.m. public hearing, City Manager Joshua Smith plans to give a presentation about many aspects of the proposed development agreement between Hamilton and Pennsylvania-based Spooky Nook, which operates North America’s largest indoor athletic training and sports competition near Lancaster, Pa.

“The public hearing is not mandatory,” said City Clerk Nick Garuckas. “Basically, Joshua decided he should have a public hearing regarding the Spooky Nook topic, and the potential development agreement as it’s getting worked out between all the different legal parties.”

After Smith’s presentation, “he’s going to open the floor to questions so City Council or citizens can come and ask him questions about the agreement.”

City Council is expected to vote on whether to approve the proposed agreement during its Oct. 10 meeting.

Both meetings will be held in City Council Chambers, on the first floor of the city government building, 345 High St.

The Journal-News was the first to report proposed terms of the agreement, including local contributions to the project’s funding.

The funding proposal includes:

  • A $5.5 million grant from the city toward Mill II of the Champion site, the large building between North B Street and the Great Miami River;
  • Some $3.7 million in work for roadway improvements to accommodate the project, including sidewalk links to the Main Street entertainment area;
  • Some $5.92 million in improvements to Hamilton's municipally owned natural gas, electric, water, sewer and storm-water utilities, so the city can serve the project;
  • A $5 million city loan toward the project that is to be repaid over 20 years from Spooky Nook operations;
  • Holding up of $13 million in Hamilton Community Foundation investment assets to help the development secure a bank loan. The investments will remain in the foundation's possession, with the foundation still reaping interest from them;
  • Another $2.5 million loan from the city to cover interest expense on the foundation's loan during project construction. The loan is to be repaid over 20 years;
  • A short-term $3.5 million Hamilton contribution to temporarily fund New Market Tax Credits, which officials believe will be granted around the end of the year. If they don't happen, and if replacement funding cannot be found, the city and Spooky Nook would split the $3.5 million loss.
  • A non-tax-revenue note borrowed in August for property acquisition will be repaid with $3.75 million in tax increment financing.
  • Butler County officials have not announced whether they will contribute financial help to the project.

City leaders have not yet detailed the sources of city funding, saying some of those had not yet been determined. The decision also comes months after Tom Vanderhorst, Hamilton's executive director of External Services, wrote in a court filing that "the city is in financial distress, the city estimates the limited reserves it has will be depleted by 2020."

Also, he wrote, in the sworn affidavit in a lawsuit involving St. Clair Township over annexation that, “The city anticipates it will be required to reduce employees in the next several months in its continued efforts to reduce its expenses below its revenues.”

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