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St. Marys assistant city law director Kraig Noble said about seven of the 28 apartments in Fort Barbee are currently occupied.
ST. MARYS - If all goes as it should, a Lima man is set to close on the purchase of the Fort Barbee Apartments in a couple of weeks for $350,000, assistant city law director Kraig Noble told city councilors at their regular meeting on Monday night.
Eric Ross has toured the historic apartment building at 100 W. Spring St., St. Marys, a couple of times since it went up for sale, and submitted a letter of intent to purchase along with a down payment of $3,500 for the property, Noble said.
"We are preparing now to close with him," he said. "It is looking like he's going to use local financing, I believe. In order to make this happen though, the city has to release its mortgage on the revolving loan fund. Again, that's not city money, there will be some money coming back to the revolving loan fund, approximately $125,000."
The building is currently owned by Riverview Partnership, which was run by Fred Schwab, who died in November 2024. Prior to his death, building residents were ordered in September 2024 to leave their homes before the end of October because Schwab was ceasing operations due to economic issues, court documents state.
Schwab failed to pay Roto-Rooter for work on the property, which resulted in an outstanding mechanic's lien of $56,366.13, per court documents. As well, he failed to pay $18,508.68 in Auglaize County property taxes and $19,686.26 to the Community Improvement Corporation of St. Marys for costs associated with water damages and repair. Roto-Rooter filed a foreclosure complaint against the property's owner, Huntington Bank, the city of St. Marys, St. Marys CIC and the county treasurer April Bowersock in June 2024.
Noble estimated on Monday that seven of the building's 28 units are occupied. The building was constructed in 1889, according to the Auglaize County Auditor's website.
The asking price of $350,000 was set and approved by the involved creditors based on the owner's accrued debt and the property's appraised value.
Once the purchase is set, the city CIC will pay Riverview Partnership $100 and they will technically hold the the property's title "for no more than 24 hours," Noble said, then they will transfer the title over to the intended buyer. That $350,000 will go to all of the creditors to settle their debts. The Riverview Partnership will get no money out of the purchase.
City councilors then unanimously approved an emergency resolution authorizing the CIC as an agent to release the mortgage held by the city.
"We will get releases from Huntington Bank, we'll get the release from Roto-Rooter. We'll pay the taxes, pay the commission, and the revolving loan fund would get approximately $125,000 (from the sale)," Noble said.
Prior to councilors' approval, Noble told them that the current deal is the best case scenario for all involved parties. The only other available option for the city to recoup its losses in the property would be to purchase it at a sheriff's sale. However, they would then be on the hook for all of the building's needed improvements.
He also made it clear that with the resolution's approval, the city did not approve the building's sale, and at no time will the city own the property.
"The CIC is the one that's going to take the title," Noble said. "The city will not own this property at any time. The CIC has the option with Mr. Schwab, and the CIC will get a deed from Mr. Schwab (and) the partnership, and immediately transfer it to this buyer."
In other business on Monday, safety service director Greg Foxhoven noted in his report to councilors that he received a letter of resignation from St. Marys Police Patrolman Lucas Wessel effective Sunday. He is now no longer an employee of the city.
Foxhoven told the newspaper following the meeting that Wessel had been on paid administrative leave since February 7, though he did not disclose what for.
However, Mercer County Sheriff Doug Timmerman confirmed that same night that his office is conducting a special criminal investigation into Wessel for an unknown incident at the request of the city of St. Marys. Timmerman said he is not able to share any details at this time as the investigation is ongoing.
Foxhoven made it clear that Wessel's situation had nothing to do with Police Chief Brian Christopher, who has been on paid administrative leave since May 27 for "alleged workplace misconduct."
On the subject of Christopher, city law director Zach Ferrall said that the internal investigation into his reported workplace misconduct is "nearing the final stages."
Foxhoven said Christopher is still on paid leave and that Police Sgt. Luke Turpin, the acting police chief during his absence, is being compensated for his extra duties.
No further information on either matter was available by press time.
They meet next at 6:30 p.m. Aug. 11 in council chambers.
