Newspaper reports indicate that the property swap, PILOT agreement and commitment of RCA funds to Maryland's Landex Corporation may just be approved. At the very least, the pending legislation will be on the docket for Thursday's Council meeting.
As we said before, it is another instance of a bad developer seeking help and money from the city to bail out their failed scheme.
Kudos to Councilmen Bethea and Coston for trying to inject common sense into the proceedings and questioning the notion of throwing good money after bad.
And Councilwoman Staton's concern about multiple exits from the properties is great...although current construction and occupation codes apparently don't require this.
Most telling though, are Council President Paul Pintella's comments. Lacking anything of substance to say on the matter, he is reported to have congratulated the developer on an "impressive PowerPoint presentation." The deep thinking Pintella concluded that he is inclined to support the proposal because "the current situation is unacceptable."
What else would we expect from him. Let's not forget how the City stepped in and bailed out the failed housing development initiated by the now defunct Urban League of Trenton. To Pintella, the City is apparently there to help struggling developers, no matter what their track record.
Let's take a pass on this deal and parcel out those properties to worthy developers who have proven their ability to provide decent home ownership possibilities. And let's work on getting Ms. Siegel and Landex to clean up their mess here in Trenton before they come asking for any further financial assistance or property swaps.
Showing posts with label Landex. Show all posts
Showing posts with label Landex. Show all posts
Wednesday, March 05, 2008
Sunday, March 02, 2008
Just say no!
Tuesday’s City Council Conference session will include a presentation from Baltimore-based Landex Corporation. This is the group responsible for the Cityside apartments in various locations around town.
According to a report in the Times last week, Landex has proposed a property swap with the City of Trenton. Landex wants the City to turn over 14 buildings it owns in exchange for 22 Cityside buildings around Passaic and Spring Streets. The 22 Cityside properties currently each house 2 rental units, but under the proposed plan, the homes would be converted to single family, owner occupied units. Landex also wants a Payment In Lieu of Taxes (PILOT) agreement, as well as a commitment of some Regional Contribution Agreement (RCA) monies as part of the deal.
Speaking for Landex, Chairwoman Judy Siegle admitted that renting to Section 8 tenants here in Trenton has not worked out as planned for the company.
Council President Paul Pintella and Council Vice-President Cordelia Staton both commented on the lack of quality in the current Cityside buildings.
It appears that under the proposed deal, Landex will utilize the RCA money and PILOTs to fund the conversion of all the properties into owner occupied units.
In essence, this failed corporate landlord that has been sucking up government money in the form of Section 8 rental payments, now wants the city to underwrite its exit from the rental business and support its development of properties for sale.
Once again, we have a would be developer coming to the city with its hands out looking for a contribution/financial support from our depleted coffers.
If Landex’s business model didn’t work out in the first place, what makes us think this new enterprise will succeed?
And what of these Section 8 tenants, where will they live? If they need rental assistance, they surely aren’t going to be able to buy one of these new homes.
Even if they could somehow finagle a deal to purchase a home, if they were “bad tenants,” how are they going to fare as property owners?
Nope. This seems like another bad idea that needs to be shot down.
We keep hearing that things have changed in Trenton and how developers are seeking out opportunities here in the city. But it always seems that they are seeking opportunities to get public funding, at least in part, for their projects.
One bad idea after another is presented, and there always seems to be a member of the administration ready to go to bat for the developer.
When will we learn to just say no?
According to a report in the Times last week, Landex has proposed a property swap with the City of Trenton. Landex wants the City to turn over 14 buildings it owns in exchange for 22 Cityside buildings around Passaic and Spring Streets. The 22 Cityside properties currently each house 2 rental units, but under the proposed plan, the homes would be converted to single family, owner occupied units. Landex also wants a Payment In Lieu of Taxes (PILOT) agreement, as well as a commitment of some Regional Contribution Agreement (RCA) monies as part of the deal.
Speaking for Landex, Chairwoman Judy Siegle admitted that renting to Section 8 tenants here in Trenton has not worked out as planned for the company.
Council President Paul Pintella and Council Vice-President Cordelia Staton both commented on the lack of quality in the current Cityside buildings.
It appears that under the proposed deal, Landex will utilize the RCA money and PILOTs to fund the conversion of all the properties into owner occupied units.
In essence, this failed corporate landlord that has been sucking up government money in the form of Section 8 rental payments, now wants the city to underwrite its exit from the rental business and support its development of properties for sale.
Once again, we have a would be developer coming to the city with its hands out looking for a contribution/financial support from our depleted coffers.
If Landex’s business model didn’t work out in the first place, what makes us think this new enterprise will succeed?
And what of these Section 8 tenants, where will they live? If they need rental assistance, they surely aren’t going to be able to buy one of these new homes.
Even if they could somehow finagle a deal to purchase a home, if they were “bad tenants,” how are they going to fare as property owners?
Nope. This seems like another bad idea that needs to be shot down.
We keep hearing that things have changed in Trenton and how developers are seeking out opportunities here in the city. But it always seems that they are seeking opportunities to get public funding, at least in part, for their projects.
One bad idea after another is presented, and there always seems to be a member of the administration ready to go to bat for the developer.
When will we learn to just say no?
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