Well, not exactly. By a margin of 3-1 (with one abstention - Nelson) the city council of Fullerton approved a $9,500,000 32-unit condo project. There are just a few problems that should be pointed out.
First, let's talk about the volume of variances which the Olson Company was granted. The reason there are zoning requirements is so that developers don't squeeze 20 parking stalls where there is only room for 10, or so that when I am sitting on my bed I can't see directly into my neighbor’s bedroom. If they couldn't fit the units and parking, they should have scaled back the project to 32 units. That would have provided more parking, open space, and distance between opposing windows. The zoning is in place to protect us from developer whims.
Next, let's talk about Councilman Jones. He is wrong to think that the City of Fullerton is required by law to provide low- to moderate-income housing. The City is required to do it because they take money from the Feds and State which comes with strings attached that include providing these types of housing.
Then there are the association dues. The VP for Olson said the dues are being factored in at $200 per unit. Who will seed the 10%-20% reserves necessary to get the association's finances started? There will be landscaping and various contractor needs from the first day that the first condo is sold.
Lastly, consider the qualifications to purchase one of these homes. I have strong, solid income and excellent credit. Even I would have a hard time getting a bank to give me a Deed of Trust (should be called a Deed of I Don't Trust You) because the banks don't want to loan money right now. According to the Olson Company, their target group is capped at $70,000 meaning any household earning more than that will not qualify. But, as Councilman Jones points out, if an owner wins the lottery, they do not have to move out. I'm sure that's a big selling point!
You and I are now on the hook for this lovely gift that our top-notch council approved. Are we going to keep letting the council (through the Redevelopment Agency) squander our earnings? Did you know that when an area of the City is found to have "blight" (figure that one out - it is not what you and I might think), the Redevelopment Agency gets first grab at the taxes generated in that zone. Our schools, police, and fire all suffer from the greed of Redevelopment.
The big secret which isn't that secret is that this will cost us the initial $12,000,000 spent to purchase the property and $9,500,000 to build on the property for a total cost of $21,500,000! Then, Olson sells each of the 34 units at $275,000 each for a profit of $9,350,000. Plus the City will kick in an additional $500,000 as needed to cover extra construction costs.
We started off with 52 low-income apartments and are left with 34 moderate-income condos. What a HUGE waste!
I forgot to mention the real kicker! With each new development the developer is obligated to provide a percentage of the new homes for low and moderate income families. Or they can pay a fee so that the City can do it for them. All the developer would need to do is give up their HUGE profit margin on one home in the development to make a big difference. Then you and I wouldn't get stuck shelling out $21M-$22M for 34 moderate income homes in place of the 52 low-income homes destroyed with 52 families displaced.
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