Low Income Housing Project Proposed For Granville
The Preserve at River Road will be a 50-unit, low-income development on 14+ acres within Newark city limits, but in the Granville School District. The developer, Buckeye Community Hope Foundation, states in its proposal, “Aside from its attractiveness, the project will have considerable appeal being located in the Granville School District, which is considered one of the better districts in Ohio.” The developers plan for heavy state financing from the Ohio Housing Finance Agency.
According to the developer’s proposal, the development will contain 10 four-bedroom, single family homes, four two-bedroom townhouses, and 36 three-bedroom townhouses. All of the units will be rentals as required under the terms of the financing program. After 15 years, the homes can be sold to individual owners.
The developer states, “The project will include a large community building with furnished community room, kitchenette, fitness room, library/computer room, laundry and management offices.”
The land is being sold to the developer by owners Ronald D. McDonald and Ronald R. Schenk. Also, the current owners of the land have approached the Licking Land Trust to accept a donation of a portion of the wooded land that will not be developed.
The general contractor for the project will be Rockford Homes.
The project is being developed by Granville resident Steven J. Boone of 1780 Welsh Hills Road through his Buckeye Community Hope Foundation, a non-profit that puts together for-profit deals for real estate partnerships. Boone’s management company, RLJ Management Co. Inc., would manage the property.
The foundation’s 2007 tax return showed that the foundation paid Boone $80,000 to serve as its president. Boone-affiliated real estate businesses operate from the same office building in Columbus. The foundation’s highest paid employee was Granville resident Gilbert Barno, who earned $112,000 in 2007, according to the tax return.
According to the website of the Ohio Housing Finance Agency, “The Housing Credit Program (also referred to as Low Income Housing Tax Credits) is a tax incentive program designed to increase the supply of quality, affordable rental housing by helping developers offset the costs of low-income rental housing developments.”
The agency has produced a simple summary of the tax credit program that can be viewed by clicking here.
Kevin Clark, housing credit allocation manager for the Ohio Housing Finance Agency, says the state has $25 million worth of tax credits available this year. Applications are due by Thursday, March 19. Winners will be announced July 2.
Clark says the state considers comments from local stakeholders when making a decision. The developer has asked the city of Newark for a letter of support. In an email to Judith Carr, Newark’s Community Development Director, Roy Lowenstein, Vice-President of Buckeye Community Hope Foundation wrote, “I would be happy to supply any other information you might need. We think this application has a better than typical chance of being funded, but the competition is quite intense. We hope you can supply a letter of support.”
The state also:
considers geographic diversity when awarding tax credits. tries to award credits in area’s hardest hit by foreclosures, a recommendation of the Ohio Foreclosure Prevention Task Force. put “affordable housing in all areas of need including areas within a qualified census tract, Difficult Development Areas, and areas of moderate, median and high income.
Peg Betts, the treasurer for Granville Schools, told The Granville Press that, “The Granville school district has not been approached.”
Betts went on to say, “Scot [Prebles, school Superintendent] and I are committed to opposing any high density growth.”
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Wow. Just wow.
The people who comment on this website tend to be liberal. Many are probably Democrats. Chris Hawkins will soon be putting forth an explanation for why socialism is the way to go.
Yet, when we have an opportunity to have the wonders of a socialistic system, an example of what our tax dollars are being used for, displayed right here in our own backyards, we all band together to argue AGAINST it.
My oh my. And people call buknut greedy.
communist bastards
Mr Smith
I would consider myself a socialist
I am a registered democrat
and also consider myself a liberal
But i do not think i color the world or Gville in those terms
But dont you think that fairness and openmindedness
are really whats important
I hope people would do the same
Lets simplify the world not complicate it on all levels
bob
Granville rental prices--affordable housing
An acquaintance of mine is renting a house in Park Trails for $725 a month. I don’t know if this is typical but it seems pretty affordable. I think the house is in foreclosure or near it. The construction of a subsidized housing project next to Park Trails would have an interesting effect on that development.
I’d be curious to hear what other homes and apartments are renting for in Granville. I suspect there is a wide variance and prices are heading down.
Granville Square prices
The project near Park Trails says its subsidized rents will be:
* $520 for a 2BR apartment.
* $600 for a 3BR townhouse
* $680 for a 4BR house.
Granville Square Apartments prices:
* $465-515 for a 2BR partment.
* $690-$735 for a 3BR townhouse.
A vacant 3BR duplex on S. Pearl is asking $850.
What does it say about a developer...
…that he contacts the city of Newark for a letter of support but makes no contact with the Granville school district? Then, he uses the Granville school district as his big selling point.
It says to me he doesn’t give a damn about the Granville school district. He should expect the Granville school district and its taxpayers to return the favor.
Bottom line: Developer takes $7 million state handout. Cashes in on government money. Sticks Granville taxpayers with $4 million bill. Thanks a lot.
Steven J. Boone. Granville resident. Persona non grata.
Not NIMBY
I want to make clear that my objection is not a “not in my backyard” concern. If this was a market-driven development, that would be one thing. But this development has nothing to do with capitalism. It’s not even about the availability of affordable housing. The rents are cheaper at Granville Square Apartments, which isn’t subsidized and has openings. (I called.) This is a disgraceful example of how good intentions get hijacked into bad public policy, how a special interest sucks $7 million from the teat of state government and leaves Granville taxpayers with a $4 million clean-up fee. It’s a raw example of how the system gets manipulated so costs are shifted to taxpayers while profits are fed to private interests. It is gross. If Gov. Strickland and President Obama are looking for a program that should be zeroed out of the budget, a better candidate could not be found.
can somebody say merger ?
It seems to me this is another example of getting the township and village closer and closer to merger
Yet another school is going to have to be built
among other things
Gville is going to need the tax money you simply can go on and on in this small village with limited funds as small as it is
I can here the township people now screaming about this
from here
Help!
What happens to the rental market in Granville when suddenly there are 2, 3, and 4 bedroom houses for rent for $500 to $700 a month?
How can owners of apartments and rental houses who don’t benefit from government subsidies compete?
We can’t.
Perhaps Mr. Buknut is tied
Perhaps Mr. Buknut is tied into Buckeye Community Hope Foundation?
Hottinger's Bitter Fruit
Adjacent school districts could decide to transfer land from one to another. They just had to agree and it could be done.
Some thought that Granville schools should transfer the Kraner land to Newark schools. Everybody would win – Granville wouldn’t have to deal with more students and Newark would get more students that it sorely needs.
The same principles are true at the Preserve at River Road. Granville doesn’t need the students and Newark desperately needs them.
So why don’t the school districts make a deal?
Well, our state representative Jay Hottinger, at the request of Bill Kraner, got the state legislature to pass a bill that prohibits such a transfer without the consent of the landowner involved.
Why would Hottinger do such a thing? It hurts his hometown, Newark and it hurts the home of many of his supporters, Granville.
Let’s see. Kraner gave, then mayor, Bruce Bain $10,000 to provide sewer and water against all of Newark’s rules. I wonder what Kraner gave Hottinger?
And here we are – Newark and Granville reaping the fruits of Hottinger in bed with Kraner.
Let's remember this on July 4th
Let’s remember that Hottinger does not care for Granville when he is walking in the Granville 4th of July parade. We might want to remind him we are unhappy with his pro-developer, anti-Granville, anti-Newark stance.
Hottinger would be wise not to show his face on July 4
It could be quite confrontational.
A $7 million subsidy. That's a wow!
The developer’s proposal shows his project will get government gifts of more than $7 million on a project that will cost about $8 million. What a ridiculous waste of tax money.
The subsidy may be even greater than $7 million. The proposal does identify $6.6 million in tax credits to be sold to investors and another $600,000 in funds from the state of Ohio.
This isn’t business. It’s welfare. To do this garbage in your hometown, at the expense of your local school district, is truly a remarkable thing.
The era of the government bailout has come to Granville.
Government handouts for developers
I called myself Granville Goat because some things on this site get my goat. This one takes the cake. If the state pays a developer $7 million to screw the Granville school system, Gov. Strickland should resign. Our government is a joke.
Park Trails Haters
See, it could be worse.
wow
Who and where do we write to if we OPPOSE the project? I am really surprised to see that a Granville resident is the one trying to do this…..Since when is Granville hard hit by foreclosure?
Cost to school district
Granville can use affordable housing. However, the developer’s relaince on state subsidies — more details, please — makes it seem likely this is a wasteful government boondoggle rather than market response to a legitimate need.
That aside, what might the development cost the school district and its taxpayers?
Assume 1 student per home, or 50 students total. Each student costs $6,000 in local taxes. The new units might pay about $2,0000 in school taxes each. So the net loss to the school district is about $4,000 per student — or $200,000 annually.
In addition, 50 students equals a need for two new classrooms. Schools cost about $1 million per classroom. Total capital cost: $2 million.
So the total loss to the Granville school district would be:
* $2 million one-time.
* $200,000 per year.
Higher costs
One student per home is low. I would think 2 students per home would be more like it.
Most people move to Granville because they have school-age kids and want them to attend
the Granville schools. Also, Granville spends $9277 per student.
So the cost would be:
*$4 million one-time
*$927,700 per year.
lower income people have to
lower income people have to live somewhere
I already live here bro
You got something against it. Don’t collect welfare to do it either. My home space is cheap and nice and I even make my child support payments on time most of the time. You don’t have to be rich to live in Granville. That’s a big lie. Don’t be snotty. There’s plenty of us “poor people” in town already.
Examine the History of this 14 Acre Tract
Does anyone remember the history of this 14 acre tract? This land was originally part of the original Park Trails tract. When Schottenstein proposed the development, this l4 acres was to be developed into condos with the profits from the condo development going to the Granville Schools to help pay for new classrooms. Did Granville Schools ever get the money it was promised???
The topography of this piece does not make for cheap development. The 200 foot strip that they are proposing as the 4 bedroom home sites FLOODS - major. It is the main water route for the land to the south. On the north side of this parcel is a deep ravine that drains Park Trails to Raccoon Creek. The “little creek” that flows through the property has a history of flowing 10 feet deep and out on to River Road. Oppose the development based upon the land being in the flood plain. If you try to attack it based upon government handouts, you won’t win. It is the time of Obama.
Interesting history
I can see how flooding may be a problem. The site plan calls for three detention ponds! Plus there’s a creek that may require a bridge over it, and they’re giving away a quarter of the property to the land trust.
Newark has the land zoned as Multi-Family Condominium. So the project needs a zoning change that is detrimental to newark.
Your history is an important piece of knowledge because the MFC zoning makes sense fiscally for Newark. The city naturally wants to maximize income tax revenue from the limited land it has in the Granville school district. Newark already has lots of affordable housing and low income residents. What it needs is high income residents to pay the 1.75% city income tax and bring some fiscal balance to Newark. Condos would help do this. It would be financially foolish for Newark to rezone the property for a low income housing project that will generate little city revenue but create a great demand for police and other services.
The more you look at this proposal, the less it makes sense.
Question: Is this property covered by the Newark-Granville Authority that requires new homes to pay $400 per year per unit to the school district for 20 years?
Newark-Granville Community Authority
It should be. It was annexed into Newark as part of Park Trails. Newark doesn’t do things that makes fiscal sense when it comes to “sticking one to Granville”. Mayor Stare thought Newark would get rich with Park Trails and saw it as a way to get even with Granville for its land grab in 1986. At the time of Park Trails annexation, Mayor Bob (then Councilman Diebold) was the only one against it. He saw Park Trails as costing Newark more in services than it would generate in taxes. Let’s hope Mayor Bob still feels the same way.
The only way to get into this property is with a bridge or through the Harris property.
N-G Community Authority
Park Trails participates in the authority. Park Ridge, across the street, does not. Why the difference? What documents define the authority and the property covered? It would be good to post them on the GP.