Wisconsin man says he lost $100K on previous Dayton Arcade effort

A Wisconsin man said he is out $100,000 he invested nearly a decade ago on a failed attempt to redevelop the Dayton Arcade, and he is asking local officials for records relating to the project.

Stephen Heins of Sheboygan, Wisc., wrote an open letter to city of Dayton and Montgomery County government officials today, saying that he was one of a group of investors that submitted a winning bid of $615,000 for the arcade at a Montgomery County Sheriff’s sale more than eight years ago.

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Heins said the original seven investors included three people from Dayton, three from Wisconsin, including himself, and one from Baltimore.

“In my case, I took $100K from my retirement account to become a shareholder, never dreaming that I still wouldn’t have my original investment back after eight years,” Heins wrote.

Eventually, as their plan failed to materialize and the arcade fell into disrepair, local officials moved to stabilize the structure to prevent it from further damage, then found new developers — Cross Street Partners and partner McCormack Baron Salazar — to attempt redevelopment.

That group says it is moving toward a closing, hopefully in November. The development partnership plans to spend more than $100 million redeveloping the arcade complex in phases, beginning with the southern sections.

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The arcade is a collection of nine buildings with more than 420,000 square feet of space, which developers plan to turn into housing, retail, offices, restaurants and collaborative and public spaces.

Meanwhile, Heins asked the city in his letter for copies of any contracts and agreements made by the original investors with the city or county, plus other documents related to the project.

“I am now a 74-year-old retired man .. teetering on the edge of insolvency. Nonetheless, I am happy to see the City of Dayton and Montgomery County returning to its historical prominence,” Heins wrote.

We are seeking comment from city officials and will update this story if they respond.

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