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June 10, 2011

Hawks project debated

LaCasa hopes to renovate Jefferson Street building into apartments

GOSHEN —

 It’s a project far from sure.

Several concerns remain regarding LaCasa’s proposal to redevelop the former Hawks Furniture building into a live/work center for artists and entrepreneurs, not least of which is public opinion. Most, if not all, of those concerns were raised during an at times heated public meeting attended by roughly 40 people at the Rieth Interpretive Center Thursday evening.

The first portion of the meeting was a redux of a LaCasa presentation already delivered to the River Race Advisory Committee and the Redevelopment Commission. It provided some basic background on the project and the rough plan submitted by LaCasa to the commission.

It was after that presentation was over, however, that the meeting really got going.

First to share his opinion was downtown business owner Ernie Pletcher.

"I never had anybody give me a free ride," Pletcher said, "and I don’t know why a college graduate needs a low-income place to live."

LaCasa president and CEO Larry Gautsche explained that the building will not house individuals for free, that it is "affordable housing," with rent levels determined according to guidelines set by the U.S. Department of Housing and Urban Development, approximately 30 percent of the individual’s income.

"It is not free housing. There is no voucher. The people pay for their housing," Gautsche said.

Later, Pletcher argued against the types of people the project was aimed at attracting.

"I’ve been to New York City, and I saw the artists and those people out there," Pletcher said. "I’m not sure that’s the kind of people I want in my community."

His comment was eventually met with a response from Gina Leichty, a member of Downtown Goshen Inc., an employee of Lucid Energy Technologies, a board member of First Fridays and a member of LaCasa’s Hawks building project committee.

"I would be one that would be qualified to live in this type of live/work (building) and a lot of people that I know and a lot of professionals downtown would qualify for that type of living arrangement," Leichty said. "And I don’t plan on going anywhere anytime soon."

Former Goshen City Council member Bill Bloss asked what the cost to the city will be for its responsibilities in the project, which include improving the alley, burying nearby power lines and assisting in the construction of a parking lot. Council president Tom Stump, who moderated the meeting, said those numbers are being prepared and should be presented to the commission, of which he is also a member and chair, at its upcoming meeting in the council chambers at 4 p.m. Tuesday.

At one point the question of cost to demolish the building was raised. Community Development Director Mark Brinson said the city has learned through several recent demolitions that old factory buildings are very expensive to remove. He estimated it would cost $300,000 or more to have the Hawks building demolished.

A question from current council member Don Riegsecker regarding the time frame drew several statements from Gautsche on probelms faced by the project.

Gautsche stated that a market study to be completed by LaCasa could show the market would not support the project, it could take too long to complete parts of the project to be able to use certain funding and it could be discovered that contamination on the site is too extensive to be affordable to clean up to residential standards. Any one of those situations, he said, could cause LaCasa to back out of the project.

He also said that while applicants to live in the units would initially have to fit certain other requirements as professional artists and entrepreneurs, should they run out of those types of applicants, anyone who was strictly income-eligible would be able to rent the units whether they were artists or entrepreneurs or not.

Council member Dixie Robinson asked a question that has been asked of her by her constituents.

"Does Goshen really need more low-income housing?" Robinson said. "That’s the very question everyone else has asked me when talking about this project."

Gautsche answered directly.

"Does Goshen need more housing? The answer is no," Gautsche said, later adding "We have an oversupply of housing, but I don’t know if we have an oversupply of quality housing."

Resident Manley Rohn said by giving LaCasa the project, city officials were "giving away the ship," which he said they have done in many other instances.

"I personally don’t want to see any of my tax dollars go to this, not one cent," Rohn said, later adding "No matter how you cut it, we are the government. It is our money."

When one woman asked how the project would affect her taxes, Gautsche responded that since the building is currently not on the tax rolls and — once any tax abatement period was complete — the building would generate approximately $48,000 per year in property taxes for the city, her taxes would actually be reduced by a very small amount.

Questions were also raised regarding parking, access to the building and use of local contractors.

Among his other comments, Gautsche noted that the structure of organizations that would run the project had not been put together yet and though they had presented a basic framework of how the project would be funded, no grants, credits or funding of any kind had been sought yet and no financial institutions or potential project partners contacted. Those would be steps that came later, he explained.

At least a few in attendance were in complete support of the project, including Jeannette Post and Rachel Eisenhower.

"LaCasa has a wonderful track record," Eisenhower said. "I completely trust their judgment going forward."

Near the very end of the meeting, Stump also shared his opinion.

"I haven’t decided I’m for this yet, but I’m leaning that way," Stump said. "I see it as an engine for economic development in that area of town."

Planning and Zoning Administrator Joe Hauflaire told attendees that in addition to the commission hearing Tuesday, there would also be a zoning hearing for the property held at a future date, so the public would have several more opportunities to comment on the project.

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