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Next Monday, December 18, the Monona City Council will make a momentous decision, one which will probably define the legacy, for good or ill, of each member of that body and of the current administration.
The council will be presented with achoice: whether to spend some $6 million to acquire the Garden Circle apartments. The deal has to be done by the end of the year, so the council will have to make the call that night.
In preparation for an earlier redevlopment proposal most of the buildings were emptied by the various landlords. That redevelopment proposal fell through. The City has placed that area in a proposed TIF district and would like to see it redeveloped.
One of the challenges in redevlopment projects is obtaining unified ownership of the properties. The Garden Circle apartment buildings are owned by three different owners. Right now most of those buildings are empty, but they won't stay that way unless the City acquires the parcels.
The present situation is a unique opportunity to acquire the parcels without forcing a lot of people to move (the private development plan that fell through already did that once) and without incurring heavy relocation costs. The City would then exercise greater control over the redevelopment of the property. The City would also incur holding costs until the parcels are redeveloped.
There are risks with whatever decision we make. If the city does not acquire the properties, they will, at least for the foreseeable future, go back to more of what they were before - a too high concentration of low-income housing with a high number of police calls.
Saying 'yes' will require a bold decision by a body not necessarily known for its boldness. But is this the right time, place, and price to be bold?
Thursday, December 14, 2006
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Dear "Monona" Doug,
ReplyDeleteI like bold
HOWEver, what is the price to be bold now and in the future from an invidual landowner's perspective?
I'm not clear what the question is. Are you asking what it will cost the Monona property taxpayer?
ReplyDeleteHow can the city afford not to buy that property? This city cannot grow. It can only redevelop, so this type of property is a very precious opportunity that the city should not leave to the free market. This council has to start being more aggressive in the future of this city. Yes, we want the basics taken care of, like trash and street repair, but we elected you guys to be leaders, not managers.
ReplyDeleteBuy it - I can't see how anything good can come of letting the current situation run its course.
ReplyDeleteCaught the end of the discussion last night on my TV.
ReplyDeleteI am sure glad it is open to public comment.
On another note-my assumtion is that the 6 million figure is assessed value.
The actual price to acquire the properties is about $6.3 million. The 2006 assessed values of the properties was over $7.2 million, so the city will be paying almost one million less than the 2006 assessed value.
ReplyDeleteWhat is the market value? How much for demo? How much is the City selling it for? Or is the city now the developer? Any conflict of interest from any parties involved?
ReplyDeleteI don't have my materials in front of me, but my recollection is that the total cost including demolition and interest is about $7 million. The city does not plan to be the developer. We have looked at running it as a housing authority, but none of the options for doing that make much sense.
ReplyDeleteThe CDA will be issuing an RFP for development proposals after acquisition.
The market value is basically the price agreed upon in arms-length transaction between a willing seller and willing buyer, which is how we got to the price we have. If anything, Baker may be in a somewhat distressed position.