The developer of a major proposed multi-use project on almost 270 acres formerly known as the Dille properties has withdrawn an attempt to detach the site from the city of Centerville.

The land, between I-675 and Wilmington Pike, was first annexed in 2006 from Sugarcreek Township in Greene County.

The Greene County Court of Common Pleas granted the dismissal Tuesday, Oct. 2, at the request of Miamisburg-based Cornerstone Developers Ltd., which had filed petitions July 27 to return the property to Sugarcreek.

Cornerstone and the Oberer Companies said that action was prompted by a breakdown in financial negotiations with Centerville “over the scope of work and timing of roadway improvements” needed for the development.

George Oberer Jr., chief executive officer, said on July 30 that Centerville wanted to shift “an unreasonable amount of those costs to us.”

Despite their legal differences, Centerville officials and representatives of Cornerstone resumed negotiations in August and have been meeting on a regular basis to seek a compromise.

Following a meeting at the Centerville government center Wednesday afternoon, Oct. 3, Oberer said, “Those talks have been productive. Progress has been made in all areas. The Cornerstone board decided that dismissing the detachment petition was the best course at this point.”

Centerville city manager Greg Horn expressed pleasure at the dismissal and said it “removes a cloud that’s been hanging over our talks. The goal remains for Cornerstone and Centerville to come to an agreement on a development that can move forward. We haven’t reached that yet, but we continue to have productive meetings.”

Township officials said they were willing to work with the developer to get the project off the ground. The township has invested nearly $600,000 in the legal battle for the property.

Nadine S. Daugherty, chair of the Sugarcreek Township board of trustees said she is disappointed about Cornerstone’s actions.

“It doesn’t sound good to me, but I can’t speculate,” she said.

Days after Cornerstone moved to detach from Centerville, trustees voted in favor of placing an issue on the November ballot that would change the township’s form of government to “limited home” rule from “statutory township.”

The change would make it easier for the township to borrow enough money for public infrastructure improvement projects many developers find attractive, officials said.

Sugarcreek Twp. Administrator Barry Tiffany said the issue will remain on the ballot because if it passes, it will help future development.

“We hope the residents will still support it. We have development in the future that has to take place to stablize their properry taxes,” Tiffany said.

Supreme Court case remains open

The project remains complicated by Sugarcreek Twp.’s opposition to Centerville’s annexation of the land and a subsequent attempt by Centerville to adopt a tax-increment financing plan that would pay for certain improvements on the two-parcel location. Sugarcreek has maintained that it should receive all property taxes collected from the annexed land.

After Greene County Common Pleas Court ruled in Sugarcreek’s favor and against the TIF, Centerville filed an appeal with the Ohio Supreme Court on May 31, 2011. No decision has been made. The case is being closely watched by other municipalities and townships across the state.

“I suspect that with the case here being dismissed, the Supreme Court decision may now move forward,” Oberer said.

Tiffany said he is hopeful the Supreme Court decsion will go in the township’s favor. He said he hopes Centerville will agree to share and spend revenues expected to be generated from taxes on the property with the school district, township and other jurisdictions fairly.

. “They are in the driver’s seat on this,” he said. “They can push this development in such a way that we are taken care of and they are taken care of,” Tiffany said.

Dille Laboratories Corp. agreed in 2004 to sell the land to Bear Creek Capital LLC, which later withdrew plans to develop it.

The Oberer Companies took up the project in 2010 in a new Cornerstone partnership with Dille Laboratories and members of the Dille family. The proposed development east of Wilmington, west of I-675, south of Brown Road and north of Feedwire would include retail, office and hotel uses.