The Warren County Port Authority is expected to take ownership of a $4 million, 25,000 square-foot medical office building to be constructed in Franklin Twp., across Ohio 122 from the Atrium Medical Center.
This afternoon, the port authority board is expected approve leases with S3C Enterprises LLC, through which the port takes ownership of the building and leases it back to the company, enabling the project to avoid sales tax on materials used in the construction, according meeting documents.
The estimated savings is $140,000, according to Matt Schnipke, deputy director of the Warren County Office of Economic Development and secretary of the port authority.
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The building is to be constructed on 2.4 acres, east of the entrance to Renaissance housing development.
Last June, the Warren County Board of Commissioners approved plans for the building after the owner, Dr. Sandeep Gupta, agreed to share access with the owner of land east of the proposed location of the Middletown Cardiovascular Associates building.
The project failed to materialize in 2016, after Gupta and Dr. Syad Najeed, owners of the other parcel within the planned-unit development were unable to reach an agreement.
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S3C is to pay a $2,500 deposit, a $21,000 fee upon closing of the leases and cover $18,000 in legal costs to the port authority for the deal, according to the agreements.
S3C is to pay $1 a year rent on the ground lease and be the owner for federal income tax purposes, with the option to terminate the 10-year lease and take title to the site for $1, plus transfer costs.
S3C is to lease the first floor to Atrium Medical Center and second floor to Premier Health Specialists Inc. and pay $500 a year to the port authority on a 10-year project lease, which can be terminated after five years.
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The port board is to meet at 3 p.m. in the Warren County Administration Building, Room 349, in Lebanon.