Senator Jahn, I am totally confused. The City takes out a 5.8 million dollar for site acquisition, demolition and preparation of a 7.5-acre parcel in Main South, so it could be redeveloped. O'kay so far so good.
I assumed the City of Worcester took out this loan to kick start the project, but would get monies back from the parties benefiting from the clean-up (Main South CDC, The Boys Club and Clark). These monies monies would in turn be used to pay off the loan? The way I read Nick's story the City of Worcester was depending on the Feds to make the payments on the loan, that they in fact gave to us, does this make sense?
All the monies that were spent to acquire and clean up the land, did we not get any money back in sales or rental income? Someone help me understand this loan.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
8 comments:
Bill,
The way I read it is that the city never expected the actual users of the project to pay for it. It would be taken care of by the magic printing press in McGovern’s office. So in the end, whether you’re a federal, state, or city taxpayer (yes to all) it’s on your tab. Garbage like this has to end. On a side note, just got back from Chattanooga TN, where UNUM is one of a few of their major employers. I hate to say it because I’ve lived in the city for 46 years and really enjoy living here, but if I were a UNUM employee I’d want the company to pack up shop here and move the operations there in a minute. Clean city, great downtown, 2 aquariums, children’s museum, river walk, minor league baseball team and stadium (Chattanooga Lookouts – Red’s affiliate), great restaurants and bars, plenty of great places to live either right outside of downtown or modern condos all over downtown AND an airport with flights and connections to many other places.
I can not tell you how much this 5.8 million dollar loan is bothering me.
We take out a 5.8 million dollar loan and when we can not pay it back, we blame the Federal Gov't for not giving us the money to pay back the loan that they gave us?
We must have felt that revenues would be coming in to help us pay for the loan, thus our reason for taking out the loan. What were they? What went wrong?
Bill
I think when you cut through all the baloney what will ultimately happen is the city will service the debt by taking add'l funds from CDBG's which is fine by me b/c I figure this will prevent the CDBG's for being used to build more low income housing.
This stuff is absolutely out of control in Worc. I think even if we stopped everything on the drawing board in terms of low income housing ......that we have already fallen off the proverbial cliff with too much low income housing.
Just look at crown jewels of this entire project.....teh 4 three family houses they moved 200 feet each back in 2002.....spent $600,000 a piece on rehabbing after getting the land for free or almost free from the city.............then these jokers at Mian South CDC turn around and sell the places for about $160,000 each.....a loss of $440,000 on each of the 4 three deckers...christ you could have build replicas for less money.....movin g gutted out 3 deckeers makes no sense...and folks wonder why there's no money to service the debt......now right there on just those 4 houses they lost $1.7M.....and then to top off it off the folks at city Hall show up for ground breaking and toping off of these projects .....like it was somehting to be proud of........inundating the city with more Pajama People (source Pualie), more seccion ocho's, and more of these folks who walk around in 9 degree January temperatures with SHort pants on. How in gods name can we ever build city of solid middle class citizens who will frequent the Hand It Over Theatre?
Read the comments to this articel on T&G website. I was surpised to see 11 comments and the prepondernace of the opinion is that this baloney has to stop.
What is not being mentioned here by anyone is that we are just paying off the interest on this $5.8M debt. No where is there any mention of starting to pay down the debt itself........it's being treated like an interst only home equity loan....and no one is even talking about paying it off.
Clark and Main South CDC s/b made to eat this $5.8M.....they are the only beneficiaries of it.........CLARK HAS USED (ABUSED)THIS 'HOOD FOR TOO LONG AS A SOCIAL LABRATORY..........LET bARNEY FRANK AND mCGOVERN LIVE IN THIS HOOD FOR A WEEKEND........
Jahn:
You are mixing up CDC (Community Development Corporations) and CDBG (Community Development Block Grant).
If the monies were taken from the CDC's to make the Section 108 HUD loan then you would be right. In actuality the money is taken from CDBG funds, which actually go to pretty good stuff; for example the NRSA (Neighborhood Revitalization Strategy Area program is funded with CDBG funds).
I hope that we get a better explanation of which unexpanded CDBG funded accounts were wiped out to pay the loan.
Bill
Doesnt Neighborhood Revitalization Strategy often involve building low income housing.
Does South Worc Neighborhood Center receive any CDBG's and if so look what they have morphed into by way of CDBG funds.
Just whay does Neighborhodd revitlaization money actully go for?
The real root of all these problems is that we send too much money to washington that then gets re cycled and sent back to us at 68 cents on the dollar. If the money never went to Washington to begin with (and back to Worc), there is no way in hell that the property tax payers of Worc would allow local tax dollars to fund this flood of low income housing. But send to Jim McGovern and Barney Frankfurter in washingotn and look at the end result. Jimmy And Barn'ster will be at the next groundbreaking with their golden shovels but will immedialtely after the ground breaking re treat to their Upper Burncoat and Beacon Hill homes. Phonies
We need to fire mcgovern
CDBG stands for Community Development Block Grant. When used effectively it is a great benefit to the City of Worcester.
Paul;ie, myself, Andy Serrato and Laurel (mgr of BankNorth on Park) work hard on the Chandler NRSA which is funded with CDBG dollars. It has gonee pretty well.
I agree that CDBG monies should not help entities like South Worcester build anymore low income housing. That said CDBG monies can be quite effective.
Lose CDBG monies to fund a 5.8 million HUD loan is a shame.
How about a so called non profit Pilot Payment from Main South CDC to fund this interest that is due???
Where's Palmieri when you need him......MIA or .........shoveling his sidewalk or chuckling with Polito on WTAG morning drive...???
Think of all the freebie milliions of giveaways to the likes of The Hand It Over Theatre and all waived permit feee for low income housing constr...........then ask your self why we're having financial troubles trying to just pay the interest........never mind paying down the loan itself.
Some of those 11 so called councilors down there on Tuesday have to be in in bed with these CDC's..there is jus tno other poss. explanantion.......
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