University Village concerns
100% section 8 is foolish. They would have no market incentive to keep up maintenance. It will become a slum faster than it did this time.
30% of the apts should be at market rate -not section eight This is exactly what will force them to keep the place cleaned up forever. This is what our city could live with. Seven million in soft costs on 20 million investment to cure deferred maintenance is over 3 to 4 million in blue sky lining someone’s pockets.
The skim money of 3-4 million should go to the City of DeKalb for paying for social services. Only $500,000 going to social services is inadequate to cover costs and should be considered a slap in the face They want to provide a police sub station- they should provide the $100,000-$200,000 per year to staff it with police officers Otherwise it is a
bad deal for the city.
Why reward the current investors for milking their project creating a depreciated – poorly maintained and run down, high density place that those living there have had to endure? And force the city to pay for increased social services!
Let’s send the inspectors in and fine them into submission to clean it up, fix it up and maintain it properly. That is what the city is doing everywhere else- why do these (45 investors group) get a free pass? No special zoning means they just get the finance money from another source.
Any contractor could remodel and upgrade this for a lot less than what they claim and without the phony soft costs. There are numerous professional national apartment management companies that can manage this project much better!
The Crane investment partnership appears to have milked this project for over forty years. They are probably netting 3.5 to 4 million in cash flow right now. This is unfair to the current tenants. By letting it run down to a value of $10 million, they should now only be taking about a million out as profit — while reinvesting the balance of income into upkeep and remodeling. The deferred maintenance is their responsibility to cure now. Simply put, they need to put about $8-$10 million back in now to restore the units up to the standard that the current tenants have the right to enjoy.
This was simply a business decision on their part. Obviously they are hoping the city council might be swayed into a stupid decision allowing them to keep a windfall.
This is an investment and big boys game!
Why reward the current ownership for what I personally would define as being slum lords. They obviously will 1031 upon sale into a new investment and not pay taxes and get to keep all their unfair profits and equity. They should either sell at current market or fix it up to get the price that they are trying for.
If the city plays into their game which makes them millions extra, we are foolish as it is an obvious bad deal for social services and the city long term.
Let the free market determine the outcome of this place. This is worse than if the city was rewarding Shodeen for boarding up all the houses at pearl and Lincoln just to be eligible for TIF.
The developers refused to answer any of my questions at the podium because they know that by doing so, they will have to admit just how much money they are making and what they really could be giving to social services
Bottom line, the current tenants are stuck living in squalor.
It is a sad state for humanity that city officials might reward investors for milking the rents instead of maintaining their properties. What kind of message would this send to all landlords in the city of DeKalb?
Submitted via text by Alderman David Baker, 6th Ward, DeKalb
Editor’s note: This letter was submitted via text message. A copy was sent to Mayor John Rey and City Manager Anne Marie Gaura. The City Council will likely discuss the University Village proposal at its August 24 meeting. It is expected that the matter will be presented as an action item.