Sandusky approves tax break, grant for Rieger developers

Sandusky city commissioners have authorized a tax break and grant funding for the Rieger Hotel developers in the hopes the long-empty building will join downtown's resurgence.
Andy Ouriel
Dec 4, 2012

 

In early 2012, the non-profit, Columbus-based housing developer Buckeye Community Hope Foundation secured $8 million in state funds to renovate the hotel on Jackson and West Market streets.

Developers want to sculpt the property into a 37-unit apartment complex for senior living. To help streamline the process and assist the foundation in debuting the apartments in November 2013, city officials made available $150,000 to help offset purchasing costs. 

For more on the deal and on a tax abatement approved by the city for the project developers, pick up a copy of Tuesday's Register.

Tentatively, available space and rent for the 37-apartment Rieger complex will be:
• $389 per month for a large studio apartment, four in total;
• $499 per month for one-bedroom apartments, 16 in total, from 650 square feet up to 751 square feet;
• $599 per month for two-bedroom apartments, 17 in total, from 850 square feet up to 1,000 square feet.
Plans also call for commercial enterprises, such as a restaurant or office space, to occupy the building's first floor.
Source: Buckeye Community Hope Foundation

By the numbers: Revamping the Rieger
In early 2012, Columbus-based non-profit Buckeye Community Hope Foundation acquired $8 million to transform the Rieger into apartments intended for senior citizens.
Here's a breakdown of what they'll do with the money:
• $5.3 million: Improvements to existing building;
• $375,000: Acquisition of building;
• $50,000: Furniture and fixtures
• $2.3 million: Other costs for administrative purposes.
Source: city of Sandusky
 

Comments

The Bizness

Alright! Great job Sandusky! This area needs to offer more tax breaks to industry to get them to move back into the area. Give a company a 10 year tax break to be located within a certain area.

Contango

Placing both state and local taxpayer funds at risk in order to finance a low-income senior housing boondoggle?

If private developers and investors wouldn't touch it, there's got to be serious fiscal and economic reasons for the lack of interest.

The Bizness

A non-profit is doing this, so as I can see what you are saying, you have to remember this group isn't out to make money. If a for profit developer, and investors did this, then sure they would want to make money which may have not made this feasible.

Contango

@ The Bizness:

Ever worked for a NFP?

There's a saying I used to like to repeat: We're not for profit, but we're not for loss either.

Do some research: Why have NFPs been one of the fastest growing enterprises in the U.S.?

Many employees and directors of NFPs are paid very, very well.

This is corporatism, not charity.

The Bizness

I understand that, but they don't have shareholders or have to worry about making a crap ton of money for others. They just have to make money for themselves. Please do not talk down to me, it is rude.

Contango

@ The Bizness:

So enriching themselves at taxpayer expense is OK with you?

Their "shareholders" are taxpayers.

Besides, not all NFPs are created equal.

Better check out this group, it doesn't look like they're hurting one iota.

http://buckeyehope.org/

http://www.rljmgt.com/

My mistake; I thought we were having an informative discussion. Hope you get over your hurt feelings soon.

The Bizness

It is ok with me, they are following the rules and just like many people in the past are doing what they can do legally to move ahead.

Contango

@ The Bizness:

And as is said: He who controls the gold, makes the rules.

Just understand that this is politically connected corporatism - NOT charity.

It would be interesting to know what salary and benefits the top dogs bring down, yes?

The Bizness

Agree, I am going to be starting my own business this spring, and I have been talking to people about how to set up a non profit for it because their are a lot of advantages. Plus my business plan is more for fun, than making money.

Contango

@ The Bizness:

Good for you!

Good luck on not making money.

pavedparadise

FYI

BCHF Salaries as follows reported to IRS::::

Treasurer; $96,000/yr, (10 hours per week)

Pres; Steven Boone, $229,000/yr,

VP of Development; R. Lowenstein, $250,000/yr/other

Vp Construction; C. Drown, $149,000/yr/other

Assis. Dir. of School Services; P. Young, $123,000/yr/other

Youthbuild Direct.; P. G. Barno, $110,000/yr

Architect; J. Haytas, $112,000/yr

Required reporting to IRS:: individuals making $100,000 or more per year

here in ohio

$2.3 million: Other costs for administrative purposes ???? NOT FOR PROFIT MY BUTT !!

deertracker

2.3 mil for "other costs and administrative purposes". Interesting!!!!! Any money would have been much better spent on a wrecking ball!

Pastor Ron

As I remember this building was given to the previous developer for free and he sat on it for a couple of years and then sold it for $375K? The Lord Jesus told me to check the tax record and sure enough there are nearly 6k in delinquent taxes owed on this building? How can a building be sold when taxes are due on it? I think the devil is at play on this one. This building would have been better served being converted into a church! http://erie.iviewauditor.com/Dat...

Centauri

Pastor Ron found the truth by researching. Whenever the rich people get a tax break, somebody has to make up the difference in more taxes. The powers that be don't like people who dig for the truth. The Sandusky Register could dig for the truth also if they wanted to. The powers that be like the SR's feel good news aimed at the simpletons. More people should follow Pastor Ron's example of digging for the truth.

wiredmama222

when the building was sold you can bet the deliquent taxes came out of those proceeds. That is the way real estate works.

mikeylikesit

right on! can i get a big amen from the house?

Kimo

This guy "Grant Money" must be wealthy, you see his name in the papers almost every day. Where does "Grant Money" make his money?

doratheexplorer

T

Contango

@ Kimo:

Political connections. It's called "know-who." Know how not needed.

doratheexplorer

That building is haunted

OMG.LOL.WT_

Another tax break for wealthy officials of a "non-profit".
Too bad individuals are not allowed to declare themselves "non-profit" to avoid paying taxes.

Contango

Oops! The top guy got a refund after making a campaign contribution to a (gasp) Repub!!!!

Not politically correct during a Dem administration?

"Steven J Boone (RLJ Management/Executive), (Zip code: 43023) -$600 (refund) to TIBERI FOR CONGRESS on 09/16/10"

http://www.city-data.com/elec2/1...

bayshore

re: Contango - Where was it mentioned that this is "low income" senior housing? Whether you want to believe it or not their are people who are reaching retirement that have planned for those years. Have you heard of IRA's - wonderful program if you participate instead of expecting Uncle Sugar to support you. There are those who no longer wish to deal with mowing yards, shoveling snow and dealing with the upkeep of a house. These units are well within their budget and will have a great view of the waterfront, unless you buy the parking lot across Market St and build a high rise condo.
Bring in a Denny's, Frish's or IHOP on the ground floor and positive things could start happening in town.
Or, you can continue promoting the year long Sandusky Whine Festival and wonder why everything moves to the surrounding townships.

The Bizness

Good stuff. Imagine a trader joes on the ground floor!

Contango

@ bayshore:

So the planned rent doesn't seem low to you?

This outfit specializes in "affordable housing" - a euphemism for low-income.

Maybe the govt. shoulda kept the housing bubble goin' in '07 with 0% sub-prime interest loans?

Better check your IRA participation rates. Most seniors arrive at retirement with $0.00 in their accounts.

Private investors have been fleeing stocks, joining the bond bubble and getting squat on cds.

http://www.ici.org/research/stats

So which of the restaurants you named are you putting your personal investment money into?

Always enjoy reading those financial geniuses that are so astute at spending OPM.

Swamp Fox

If the private sector isn't interested in using their own cash, time to tear it down.

OMG.LOL.WT_

deertracker: "2.3 mil for "other costs and administrative purposes"
Probably "expense" of "non-profit". Ha, Ha, Ha.

Pastor Ron

I pray that the Sandusky Register will find it in their heart to find out why the previous owner received this building for free, fails to pay the taxes and then is rewarded by being allowed to sell it for $375k? Strange that common folks have a lien filed against their property when they don't pay their taxes.

Darkhorse

The taxes will come out of the sale of the property when it is transferred to the new owner. I am glad to see that the tax abatement is for 10 years instead of 30 years. The school won't have to wait very long to start collecting full taxes. I think for the square footage, it is a little expensive for the rent. At least we saved the building from the wrecking ball. Now if we could only get the Historical Society to get the city building labled as a historical building.

TattooDiva

Does anyone else find it rather odd that they are putting "Senior Living" right downtown in the middle of the "Entertainment District"?? I understand the whole tax break thing, but don't you think that maybe an upscale Hotel or something of the sorts might do a little bit better for taxes????

wiredmama222

This building was going to be many things over the years and has yet become any of them.

Are we finally going to see it become something? What amazes me is that there are already so many apartments, condos and other forms of living spaces in the downtown area where people can live and they go unoccupied. This one is going to be for over 55 and be for those who have smaller incomes. I wonder how that will work with the amount of money they are investing in the refurbishing costs and purchase costs.

You cannot expect everything to come from grants and assistance programs. What criteria will they expect from their renters besides the cost of the rent? Just wondering if they will have to give up something to live there such as insurance policies, IRA's , etc, to move in? Since these people are supposedly NFP individuals, what type of "restitution" do they expect? Their rent if fairly low and at that rate with so few apartments, do the math. It doesn't add up.

Makes me wonder.

Centauri

@ Wiredmama, More money for the powers that be.

pavedparadise

BCHF:::
Treasurer; $96,000/yr,

Pres; Steven Boone, $229,000/yr,

VP of Development; R. Lowenstein, $250,000/yr/other

Vp Construction; C. Drown, $149,000/yr/other

Assis. Dir. of School Services; P. Young, $123,000/yr/other

Youthbuild Direct.; P. G. Barno, $110,000/yr

Architect; J. Haytas, $112,000/yr

Required reporting to IRS:: individuals making $100,000 or more per year.

Contango

@ pavedparadise:

Thanks.

Salary can sometimes be less than half the compensation equation; perqs and bennies are the other.

KURTje

Only the little people pay taxes/Leona Helmsly.