Stagnant development leaves Sandusky holding $4M bag

If nothing else, it looks beautiful. Near a wooded area inside the Cold Creek Crossing housing development, white-tailed deer scamper through the long grass. A few hundred feet away, the sounds of Cold Creek softly murmur above the late-summer breeze. It's hard to imagine such an idyllic place could be a problem.
Jason Singer
Sep 12, 2010

If nothing else, it looks beautiful.

Near a wooded area inside the Cold Creek Crossing housing development, white-tailed deer scamper through the long grass.

A few hundred feet away, the sounds of Cold Creek softly murmur above the late-summer breeze.

It’s hard to imagine such an idyllic place could be a problem.

But for Sandusky, Cold Creek Crossing represents $4 million to $5 million worth of problems.
In 2003, the city fronted the money for that housing development, using a $2.45 million loan to pay for public improvements.

With interest, the loan will cost about $4.1 million through 2028.

The city planned to pay for the loan by assessing people who bought the house lots. Because of a variety of circumstances, however, most of the lots never sold and only about 15 homes were actually built.

In the meantime, the developer went bankrupt.

So seven years later, the city is stuck paying off the loan and its interest, with little money from assessments coming in.

Add to that the tens of thousands of dollars in delinquent property taxes, and the development could cost Sandusky more than $5 million.

Comments

Chung Lee

Who was behind backing this lame horse?  Maybe the Register should do some investigative journalism and find out where the money went and who were the players?  Money does not just disappear...... it goes somewhere and somewhere along the line somebody came out smelling like a rose!

columbus avenue

Joe Yost strikes again!

columbus avenue

What a guy!

samiam

Let's see...trains blocking Venice Rd for long periods of time, possibly hindering emergency response teams and law enforcement, lack of grocery stores, lack of restaurants and other shopping options, etc.  I grew up on the west side of town.  When we were buying a home, we considered the condos in the Venice area but ultimately bought a house in Perkins, primarily because we were much closer to more amenities.  So maybe if those issues, especially the train one, are resolved and the economy improves, more people would consider building there.

Re the developer, Jow Young, if he's who I think he is, he was never an architect, was he?  He talked a good game but his workmanship left a lot to be desired.

Darkhorse

This is what happens when the city depends on someone else paying the bonds off and the city is backup if a development goes south.  We should never allow ourselves to get into a situation like this again. It happend in Perkins with the water motel on Milan Road.  Maybe the city should demand insurance from the developer with big dreams that if his project goes belly up, the insurance will back up the bonds instead of coming back to bite the city.  It is an expensive way to learn a lesson.  The taxpayer should be protected at all costs from the pie-in-the-sky developers.  

Captain Gutz

"Because of a variety of circumstances, however, most of the lots never sold and only about 15 homes were actually built..."

 

Not really, there was only one circumstance and his initials are JY. (Hint: he owns the crayon factory building.)

devilsadvocate

These guys come in with the big story and nothing ever happens.  Who is paying who? The same thing over and over again ..... and the taxpayers end up paying.

Taxpayer

I think the Register should contact the Firelands Realtor Association.  Because they had a SPIKE in sales in February and May, they have all the money.  They MUST have the formulary for success to help the city learn what NOT to do with TAXPAYER dollars.  I am sure of it. 

sandusky neighb...

The problem is Yost, he made it seem like it was going to be an nice area, he let alot of people down he should pay for what he did!! But also the houses are way way to high there, there is know way I would of built an house in Cold Creek for that amount of money when U could of went in perkins in an nice area such as behind the mall, hull road, Leisure est. even the new development next to Angel's Path.  I hope everything turns out because it could be an nice area  one day  but right now it's a mess. This is why the city claims there is no money, and our taxes are going up they trusted YOST!!!

Factitious

C'mon, Jason. Dig a little deeper.

T. A. Schwanger

   This is only one of many previous City Commission blunders causing the City to maintain a $2.4 carry-over balance each year to pay off debt service,

    Don't stop here Jason---give us the dollar numbers on the nearly vacant Central Fire Station and the City Service Complex.  We taxpayers will be paying for these projects for many years.

   Remember wheb Sanduksy voters turned dow a mega-levy for a new Fire Station and City Fathers voted to move ahead any way.

   Politics-ya gotta love it.

ottonut44

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