Middletown officials say they are pursuing a different developer for the former Towne Mall property after Midland Atlantic Properties did not proceed under a pre-development agreement.
City officials confirmed the agreement expired March 11 when due diligence ended without a development deal. Middletown entered the agreement with Midland Atlantic on Aug. 5, 2025, giving the company time for market studies, feasibility review and retail partner outreach. The initial due-diligence period was set to end in February 2026.
In a Feb. 25 email, Middletown’s community and economic development director, Jacob Schulte, said the firm remained in due diligence into early spring, and on Oct. 6 he confirmed the pact expired March 11. Schulte said neither side amended or remedied the period and described it as effectively terminated.
He declined to give specific reasons, saying the city’s and developer’s visions did not align.
Schulte said Middletown began meeting interested developers after the expiration and is now working with a new firm. He declined to name it until the matter goes before City Council in coming weeks or months. A Sept. 11 city newsletter acknowledged the previous developer’s departure. Midland Atlantic did not respond to requests for comment, and the Journal-News has sought public records.
The city bought the four-parcel, 32-acre site in summer 2024 for $10 million. The property is in Warren County but falls under Middletown’s jurisdiction for zoning and development. It has received $2.5 million from the Ohio Department of Development for demolition, environmental remediation and asbestos abatement. City Council member Joe Mulligan said the site is a critical area and residents have long ranked its redevelopment highly. Joshua Smith, president and CEO of the Butler County Finance Authority, said generally that deals ending at the due-diligence stage are not unusual and that such exits can let parties reassess costs and risks.