WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. June 25, 2008:  The developers of 10 Windsor Terrace  and Hale Avenue, each came before the Common Council Special Meeting last night and pleaded with the Council to keep their affordable housing buyout (in lieu of building actual affordable units)  "where it is" rather  than pay increased multi-million dollars in increased payments voted into law by the Council in March of this year. Both indicated they could not build the projects under the new payment guidelines because the financing sources do not like the "Loan to Value Ratios."

When asked if the legislation raising the buyout amounts specifically said the fees were retroactive, City Corporation Counsel Edward Dunphy told WPNCR, the laws that are in effect at the time a matter comes before the council (in this case renewals of site plans) govern the city's right to apply increased fees for the projects.  

Rome Partners and Hale Avenue LLC were before the council seeking extension of site plans for the two developments. Rome under the new law owes the city $1,470,000 in buyout as opposed to the $452,000 originally applied to the project when it was approved in 2003.

Hale Avenue LLC, approved in 2005, with construction not yet begun, originally agreed to pay $920,000 in affordable housing buyout money then. Now under the new buyout guidelines,  Hale owes the city $2.6 Million in buyout money, according to their spokesperson William Null.

Null said this made the project unbuildable, and suggested the city was making new developers pay to solve a problem that has existed in the city for years (lack of "affordable housing"). Rome had purchased the site plan on 10 Windsor Place from the previous developer, agreed not to change the 71-unit, 2 bedroom condo project, but had assumed the same $452,000 buyout would remain in effect.

Led by Councilwoman Rita Malmud, the council appeared reluctant to budge and grant a "Grand-fathering in" of the previous considerably lower buyouts the two developers had agreed, but had not paid as of yet. Malmud said that the buyout was an option, ("a favor to developers" she called it), and that the developers had the option to build actual affordable units instead. Null said that building affordable units had the same affect of making the project unprofitable the way today's numbers worked out. The council pressed by Peter Weiss, the Rome attorney, said they would take up the matter again soon, and inform Rome and, presumably Hale Avenue LLC of their decision as to hold to the old buyout, keep the new buyout, or possibly negotiate the new buyout fee down.

Kill Buyout Option Now

Councilman Benjamin Boykin said the evening's discussion indicated to him it was time to do away with the buyout option altogether, and require new developers of housing in the city simply to build real affordable units as part of their projects if they wanted.  The Mayor expressed doubt this would appeal. Tom Roach, the Councilman, predicted "They will come." .

Councilwoman Milagros Lecouona, reacting to Roach's statement said "The people who are here can stay. If they don't come that will save the city for the rest of us."

In Other Action...

The Mayor said  LLC Main, LLC, the Louis Cappelli organization, informed the Mayor's office they would not be appearing to give an update on the affordable housing situation regarding their request for an extension of the August 6 deadline, by which no C of O's can be granted unless the Cappelli organization has satisfied their 41 units of affordable housing requirement for City Center and 221 Main (The Ritz-Carlton complex).  Benjamin Boykin, Council President had called for the update.

The Council could not pass a personnel ordinance because Councilman Glen Hockley was not present.

Commissioner of Public Works  Joseph Bud Nicoletti said playground improvements of $125,000 would begin in Chatterton Park, and $95,000 worth of improvements woud be made at Mitchell Place Tot Lot. He said $3 Million in water lines would begin work up Ferris Avenue to the Orchard Street line. He announced $50,000 in outdoor improvements to the Thomas Slater Center would also begin. He also said $500,000 in sewer lines would commence.