"We need affordable housing, period."
CHICKASHA —
A work session for the Chickasha city council Monday evening turned into a gripe session for some residents and Mayor Hank Ross who are opposed to a developer’s request that the city waive $14,001 in fees in a bid to build a $7 million-plus neighborhood of 40 affordable rental homes on 29th Street.
The council last week had tabled action on a resolution supporting the development.
Ryan Hackett, principal partner of Desert Ridge Investments, a Salt Lake City firm, was at the work session to give council members a more indepth look at the project.
Hackett explained that his investors are seeking federal tax credits on the development. These credits, part of the federal stimulus spending, are issued by the federal government to offset federal tax liability, Hackett said, and the credits are allocated by the Oklahoma Housing Finance Authority.
Investors buy the credits, providing equity to construct the project and in turn receive a 10-year stream of tax credits.
Several restrictions are placed on the development. Rent is tied to income, the housing must remain affordable for 40 years, rent is not subsidized and the homes can be sold to tenants after 15 years.
It is not, Hackett stressed, low-income housing.
Calling it the “right place at the right time,” Hackett said a development in Chickasha stands to gain maximum points in the next round of federal tax credit awards. Rounds are in January and July.
Desert Ridge Investments, incorporated in Oklahoma in 2008, has developed or is developing similar projects in other Oklahoma cities, including 56 homes in Holdenville, 98 homes in McAlester, 73 homes in Durant, 34 in Ardmore, and 40 in Guthrie.
He said the project represents more than $7 million investment in Chickasha and will spur job growth, as well as increases in utility revenues, property tax revenues, and an estimated $90,000 bump in sales tax revenues. In addition, it will create home ownership opportunities for more residents.
Ross told Hackett he has a problem with the location of the tract of land where the homes would be built, calling 29th Street a “major corridor” unsuitable for a residential development. Assisted living facilities across 29th Street are owned by the mayor.
“There are other places it could go,” Ross said.
Others complained about the possible waiver of $14,001 in city fees, saying they had never received a waiver of any fee.
“What’s good for the goose is good for the gander,” one man said.
Hackett explained that applications for federal tax credits are extremely competitive and that a point system is used to determine which projects receive the credits. In the last round, seven of more than 20 applications were approved and the point totals of those winning projects ranged from 72 to 77 points.
If the council approves the resolution and waives the $14,001 in city fees, the application would have 77 points. At 10 points, the fee waiver alone can make or break the application’s chances for approval.
Ward 4 Councilmember Howard Carpenter said, “We need affordable housing, period.”
“Chickasha has been my home all my life,” said Charlie Brown, 80. “The Brown family bought this farm in 1936. Two years ago we put it up for sale and finally got one offer.”
Brown said both he and a brother, 77, “felt our Mom and Dad would feel this is a worthwhile project.”
Brown recalled 14 years ago when another project was proposed in the area and neighbors drew up a petition opposing it. They took it to Brown’s mother, pressuring her to sign it. But she saw a benefit for the community in what was proposed and refused to sign it.
“We gave the right of way for all the utilities out there,” Brown reminded his neighbors. “I don’t know if this is a good deal or not. I didn’t realize this property was so valuable for all of you to come here and protest this.
“We’ve got a nice neighborhood, got some nice people out there. Thank you for listening.”
The council also heard more details on possibly amending the city’s residential trash collection contract with Waste Connections.
If no changes are made to the contract, the annual cost to the city would go from $1,608,599 to an estimated $1,750,243. Or the city can change over to the use of poly carts for an estimated $1,638,221 per year.
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