Ludington Bowling Back Alley Deal: Castles for Cast Offs

[XLFD]

Introduction

I am admittedly eligible to live in low income housing, as are many of my friends; in fact many in Ludington are.  A very experienced developer has gone through the initial hoops to bring in five dozen new residences for people like us at the bowling alley block, effectively where the fire station stands and the lot north of it. 

We could be "those people" our city officials tell us about that desperately need affordable housing; we are definitely some of those people left homeless or poorer because of the City's recently enacted Rental Inspection Ordinance (RIO).  Because of RIO, somebody I know had their rent go up over 35% along with having further restrictions on their rental agreement.  Others homes I hear are being converted back into single-family residences, pushing out the previous units and all their tenants.  The economic law of supply and demand makes it harder to find a low rent place, and secure it when you do.  All due to the RIO, a law made to punish Ludington small business owners. 

Tom Tyron owns several properties and his words at the last council bridged the two different concepts of the RIO and this development.  His words were strong, but could have been a lot stronger had he not been a gentleman.

" I was here for one of your meetings where you passed a rental inspection ordinance, and I couldn't figure out why it was.  Now all of a sudden we made a wonderful deal to build low cost housing downtown.  State-funded.  And you ask why the private sector hasn't done that.  It's because it's not a good investment for them.  But you guys want to compete with all of us, by sponsoring HUD housing.  I don't have a problem in the world with a developer who wants to come down there and build that property with his own money, but I'm troubled by you using my money.  I always have been, I don't like it.  It's just some more government crap.  Thank you."

It was a very good, and very short refutation of three of the previous speakers who actually thought this project was well conceived and in our city's best interest.  I made some similar points previously in the public comment: 

"I would advise this council to consider the deal between the City and the developers, Bob Jacobson and John Wilson and what it will mean to the city's future.  In order to get this development, the city is forfeiting the future of Ludington.  This last year, the city went over $30 million in debt in order to keep their water and sewer systems at minimal operating standards.  You now want to grant PILOTs and consider tax increment financing that will further burden our citizens with $20 million worth of financial obligations to give the city an illusion of positive growth in the downtown. 

$50 million of new debt is a poor legacy, but we can be sure if this city government is left unchecked, they will find even more new ways to take our cash after they nearly double our sewer rates over the next three years, and keep raising them to make up for the drains of our infrastructure their crony partnerships envision.  Remember all the money, time and effort that was expended the last time John Wilson expressed interest in this block.  Learn from it."

Mathematics Doesn't Lie:  That Pauper's Place is Worth Three Times Yours!

Simple mathematics and statistical data will show how this development illustrates the folly of socialized housing.  If you own a house or condo in Ludington, the median value is about $100,000.

http://www.city-data.com/city/Ludington-Michigan.html

Here is the fair market value (twice the assessed value) of the city councilors living in the even number wards: 

Winczewski:  $111,600

Krauch:  $119,600

Castonia: $80,400

Even John Shay who makes around $150,000 a year in salary and benefits has a house worth only  $172,000.  These amounts are easily found in the city's assessor site.

This project, should both parcels be used will cost an estimated $16,000,000 to the developer:

March 7, 2016 LCC Packet see p. 90

Each of these two buildings will house 30 units each, or 60 units altogether:

March 7, 2016 LCC Packet p. 38

The federal government via the state government is financing this project with Low-Income Housing Tax Credits (LIHTC) because of the low income housing being made, not because of the ground level retail and common space.  Therefore, the expenditure of $16,000,000 on 60 units of housing means simple division can be used to figure that each unit costs $266,666.67. 

From Rags to Rich Estates

Now, you can find quality Prefabricated houses over 2000 sq. ft. for under $50,000, a downtown Ludington lot for $30,000, and if you have some simple skills and help from some skilled trades, you can set up this dream house for a little over $100,000 in downtown Ludington.  The average value of a house in Ludington.  Three-eighths of what each of these developed units designed for low income people will cost.  Amend that:  Will cost... you and everyone else.

Knowing that indigent people, possibly and probably from all over America and beyond, are living in Ludington households that are valued well over three times what Councilor Castonia's homestead is, and nearly a hundred thousand over what our overpaid city manager lives in, cannot be too much consolation for everyone else who spent a lot of sweat equity paying for their real estate, just to have their future tax assessments sent through the roof to pay for this public/private partnership from Hell planted into our downtown.

But Shay, Castonia and their fellow ignorami want to conceal all that and say they are doing the poor people of Ludington a favor, when their actions send us all further into debt and in the long run, skyrockets our rents in other areas, and makes us all a lot poorer.  Except for those lucky enough to get a $266,666.67 suite in the Hotel Socialista.  Don't let "those people" in our government and their cronies play us for fools.

[Brad]

Best report on this issue so far!

Put that on a poll and see how many citizens support it.

[AQUAMAN]

Both X and I have already been down the avenue of citizen support via putting issues/ordinances/projects like this on the ballot. The Answer from on High, Shyster Shay, and also Castonia and Holman, for me anyhow, was that They were Elected, and need NO Citizens approvals or votes now. THEY ALONE make those decisions for us as our representatives, and that's IT! Then when the next election comes, no one else files for office against them as an alternative, and so this continues, and gets even worse, as the council members become enamored in their own power, and no opponents at the ballot box. Sad, and very narcissist imho. 

[Brad]

Definitely and disappointing.