News article “Apartment plan rises in Lancaster” reports:
“4-story, 32-unit building would be built at 151 W. Walnut St., a former brownfield site at North Prince and Walnut streets that is now a parking lot…
“Randy Patterson, city economic development and neighborhood revitalization director, said the return is not a bad deal. He cited a nearly $600,000 certificate of deposit held by the city’s Industrial Development Authority that is paying only .01 percent annually. “
WATCHDOG: What is meant by the “risk is less”?
We are told that instead of the usual 15% return, or the 8% the developers are confident about, that the City is only to receive a 3% annual return. If they are being given some sort of priority position, the article should so state. The business editor should have known enough to recognized the oversight.
Moreover, “$650,000 or $900,000” would represent most of the cash contribution in a project of $4.8 million. Like the Marriott Hotel arrangement, the City takes most of the risk and the sponsors get almost all of the profits.
Although we encourage downtown apartment development, we would prefer a higher priority being given to acquiring the Brunswick Hotel and Annex and the former Bulova Building and then clearing the site. Now that the Watt and Shand site has been developed, this is the most prime real estate in downtown Lancaster and would attract developers for an upscale mix use condominium and townhouse project.
Despite Mayor Rick Gray’s two terms in office, Czar Patterson hasn’t been able to accomplish anything concerning the blighted Lancaster Square East. Patterson won’t even discuss the project with NewsLanc and its publisher, a long standing real estate developer here and abroad.
It’s hard to know where to begin with the criticism of this project.
First, the development will not bring one permanent job into the city. It will be using valuable funds to develop an apartment building when many current residential projects are underway with no government funding. And the cost will be $150,000 per apartment – double the price of many 2 unit buildings for sale at this time.
Did the City have the opportunity to defend themselves, perhaps they were misquoted by LNP? It just seems so shady to be true.
EDITOR: As stated above, Czar Patterson does not speak with NewsLanc. We have tried on several occasions to meet with him.
We have no such difficulties accessing other city officials, regardless of their level. They have always acted in an open manner. That is why we refer to Patterson as czar.