May 05--COLUMBUS -- Another highly visible section of Columbus may receive the "blighted and substandard" label necessary to initiate a redevelopment plan.

The city is considering the declaration for a block of properties along the east side of 33rd Avenue south of the Union Pacific Railroad tracks so tax increment financing (TIF) can be used to make improvements there.

According to City Administrator Joe Mangiamelli, the new owners of the New World Inn & Conference Center are seeking TIF dollars for a renovation project at the hotel and restaurant.

NBC Capital LLC, a group of local investors led by Scott Mueller, purchased the New World Inn for $297,500 in March with plans to overhaul the 265 33rd Ave. property and turn it into a Ramada franchise.

In a memo to the mayor and city council members, Mangiamelli said the local group is "preparing to return the facility to the conference center and lodging facility the community needs."

"The investors will make significant improvements and restoration to bring the facility to a national chain standard and then beyond," he said.

To be eligible for TIF bonds, which are issued by the city and repaid with increased property tax payments generated by higher valuations, the area first must be declared "blighted and substandard."

The same process was used for the Westgate Center at the intersection of 33rd Avenue and 23rd Street.

Minnesota-based Larson Family Real Estate LLP purchased the former Hy-Vee property there in March and will use up to $368,694 in TIF bonds to renovate the 35,375-square-foot building as part of a redevelopment plan for the area.

Larson Family Real Estate also is investing more than $1 million in the 2268 33rd Ave. property before it's opened as a Slumberland Furniture store.

Across the viaduct, a study conducted last month shows the area targeted for the newest redevelopment plan meets the state's criteria to be considered blighted and substandard.

Consulting firm Stahr & Associates Inc. of York determined the area -- a roughly two block-wide strip from just south of the New World Inn north to the railroad tracks -- has a number of negative influences that decrease the potential for redevelopment or new development.

The firm determined four of the 41 primary buildings and one outbuilding within the 45.6-acre study area are in substandard condition, meaning more than minor repairs are needed.

Stahr & Associates' analysis also showed that 37 of the 51 structures are more than 40 years old and other issues, such as missing or damaged sidewalks, unpaved roads and "junk" piled on properties, are present within the study area.

These issues, the firm said, diminish the marketability and development potential of the area, which warrants the use of TIF financing to help spur improvements.

Columbus City Council will take a look at the study when it meets 7 p.m. Monday at the City Council Chambers, 1369 25th Ave., but a resolution included on the agenda asks for a recommendation from the city's planning commission before any action is taken.

A public hearing on the analysis and potential declaration is expected to be held at the May 20 city council meeting.

Other agenda items for Monday night's Columbus City Council meeting include:

--the first reading of ordinances pertaining to dangerous and potentially dangerous dogs and the city's cable television franchise agreement. --an amendment to the agreement with Gilmore & Associates Inc. that pays the Columbus firm an additional $164,400 for services related to the installation of streets and utilities needed to serve Columbus Community Hospital's proposed health and wellness center and other properties that may be developed at the site just north of 38th Street and east of the hospital. --the hospital will pay 65 percent of the additional expenses and Columbus Public Schools and the city will pay 15 and 20 percent, respectively. --a $99,949 contract with GeoComm Inc. of St. Cloud, Minn., for services and support associated with the enhanced E911 services from July 1, 2013, to June 30, 2016. --the final plat of Meadow Ridge Second Addition, 18 lots located near 41st Street and 53rd Avenue. --a $20,490 contract with Terry's Painting of Columbus to paint the outside of Columbus Aquatic Center. --authorization to advertise for bids on a project estimated at $27,000 to relocate a 15-inch storm sewer main in the former Christopher's Cove Subdivision and a project estimated at $325,000 to repair deteriorating concrete streets. --reappointment of Peggy Engel, Keith Kline and Robert Kloke to two-year terms on the employee pension committee.

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