Pictured above is the rear of what New Albanians long have referred to as the Reisz Furniture Building, which has been vacant for as long as most of us can remember, apart from being used by Schmitt Furniture as storage. Recently a proposal has been advanced by a Mishawaka-based firm (Sterling) to restore this long-term eyesore and replace rapidly decaying structures adjacent to it with new buildings, all for the purpose of creating affordable senior housing.
Largely at the behest of members Kevin Zurschmiede (R) and Bob Caesar (PD - Pretend Democrat), New Albany's city council rushed forward a resolution opposing affordable housing tax credits for this project, and these credits subsequently were denied by the state agency.
A half-block to the west, a sign has been erected to tout the "proper" use of governmental incentives to private developers.
For the River View development to proceed, it must be the beneficiary of -- yes, you guessed it -- various governmental subsidies and incentives, without which the utterly cashless Mainland Properties cannot so much as turn one single spade of downtown dirt.
What's more, while Zurschmiede, Caesar and four other council persons took the opportunity of their vote to rail publicly against the very possibility that the Reisz plan might someday, far in the future, be modified to permit differing uses of dwelling spaces than those originally specified in order for construction to be incentivized, not one of them has yet indicated a similar level of internal disturbance with the fact that Mainland has completely changed the nature and intent of its River View project, from enabling downtown condo ownership and residency from the outset, to pushing its ownership society to the very end, with intervening phases of retail, office and (gasp) apartment rentals all to occur first, whether they're needed or not.
Neither Zurschmiede nor Caesar have commented publicly as to what they feel might be a better way to rehab the long neglected Reisz building than the Sterling proposal. Concurrently, they both seem to approve subsidies to build something on the part of a development group with absolutely no money, rather than to incentivize another development group with money enough to a least complete plans without its open palm garishly extended.
If class warfare does not explain these attitudes, then what does?
Using TIF funds for RiverView is such a problem.
ReplyDeleteCan the first phase parking garage and plaza actually generate revenue to retire $ 12 MILLION dollars of TIF funds?
Quoting Daniel Suddeath (January 20, 2012): If the council approves the bond note, project developer Mainland Properties would be able to pay off the $12 million loan with TIF proceeds generated by River View.
The Yum! Center in Louisville isn't generating enough revenue to pay its TIF funding.
Quoting the Lexington Herald Leader (January 24, 2012): Fresh from Louisville comes a cautionary tale for those working on a financing plan for redoing Rupp Arena and creating an Arena, Arts and Entertainment District in downtown Lexington.
Money to make payments on $349 million in bonds on the KFC Yum Center is coming up short because economic activity in the surrounding area of downtown Louisville has been much less than predicted.
Sales taxes in the six-square-mile tax increment financing district came up about $4.5 million short of what was expected for the 2011 payment, reports The Courier-Journal.
Also, arena operations are generating less money than forecast.
The arena authority can dip into surplus and maintenance funds to make the next couple of payments. But by 2013, Louisville has been advised by arena chairman Jim Host to be ready to increase its $6.5 million annual arena payment by as much as $3.3 million.
TIF payments make up only 35% of the Yum! Center's financing.
Who will have to make up the difference if RiverView TIF payments aren't there? The taxpayers? Local downtown business owners?
The article warning Lexington readers about the possible problems with TIF financing for the renovation of Rupp Area can be found here.
Jack Bobo, however he is, should start is new career as a real estate developer by purchasing the Reisz building and rehabbing it to market rate loft-style condos. With the buildings glass and location, it's a sure bet. I'm shocked no one has taken it on already.
ReplyDeleteForget RiverView, we don't need it, done of it as proposed. It's nothing more than a 1980's urban redevelopment model at govt' expense. The town is drowning in the same stuff.
I arranged a lunch a few years back with Develop New Albany and a Louisville developer I've known for decades who has a proven track record.
ReplyDeleteThe Louisville developer was in awe of our buildings. their potential and marveled that no one was doing anything with them to create above storefront housing.
The upshot? Polite conversation and a "we've got plans in the pipeline, we'll do it on our own, thank you" attitude.
Silly w&la... thinking DNA was or is a Main Street group.
ReplyDelete