There was nothing wrong with Schwind building, nor the old Dayton Daily News building on Ludlow. Both were solid buildings in good locations, and prime candidates for adaptive reuse.
But, apparently the right local developers didn’t pay off the right people, because money that could have made their projects an easy go- was spent instead with long-time Dem Party supporter Steve Rauch.
What’s most interesting is that this was after he “mistakenly” tore down the historic addition to the original Cox building .
The city of Dayton will spend $215,000 more than it had originally planned to pay for the demolition and cleanup of the Schwind Building property, which officials said will help the roughly $18 million student housing project move forward.
A federal deed restriction on the Schwind property along Ludlow Street meant the Student Suites developer was unable to secure financing that would have covered the demolition and cleanup costs, said Aaron Sorrell, Dayton’s director of planning and community development.
The city is increasing its contribution to $1,215,000 from an original commitment of $1 million to fulfill its promise of fixing issues on the Schwind property, officials said.
“The reason we pushed this forward is because there was a shared sense of responsibility,” Sorrell said. “Our agreement with Student Suites is we’d deliver the Schwind property free of any liens and encumbrances: We have not been able to do that because of the deed restriction.”…
Sorrell admits that footing the bill for the remainder of the Schwind cleanup means the city will not be able to remove as many blighted and abandoned homes as it could have otherwise. But the additional expense will help a project progress that will provide a boost to the revitalization of downtown, he said.
via Dayton to pay for Schwind cleanup .
I’ve been watching a house at 828 Frizell, near DeSoto Bass to see how long the city would take to demolish it. Unlike the Schwind, it needed to come down, although it was making a damn good effort to self-destruct without any help.
The first picture was taken April 10 at 7:27 pm. The neighbors told me that they heard a massive boom- as the house slid off its foundation, and the chimney toppled onto the home next door. The city put some cones out.
May 8, I went by again, expecting to see it demolished. Nope. 8:48 pm
Last night, after hanging nets, I drove by, it was after 9:30 and dark- the house was a pile of rubble. I didn’t see anyone out to ask when it came down, but was glad to see the city had finally addressed this serious public safety hazard.
The differences between 828 Frizell which needed to come down, and the Schwind which didn’t are night and day. But, the result is the same- public money being spent to tear our city down, instead of to make our city a great place to live.
I’ve already said that at the rate houses are being blighted and torn down, we will expend a hundred million and never keep up. We’ll always be the dog chasing the tail, instead of moving forward. Had we handed half the money we wasted on tearing down the Schwind to developer Bill Rain, he would have had student housing and low income housing in the Schwind to conform with the deed restrictions. Had they handed him the old DDN building- he would have had ground level retail and parking on floors 2 and 3. I’m pretty sure local developer Bob Schiffler would have done something similar.
But the housing stock demolition process is a whole other story.
Some houses like 828 Frizell were absolute demolition cases- many others are in the process of following in the footsteps. The process starts when a bank forecloses on a property that isn’t worth anywhere near what they lent on it- or, the tax bill is exceeding the value the home can be sold for.
Why the declining value? The wizards of Wall Street contributed a great deal to the demise of home values with their derivatives markets and loan bundling. But the City of Dayton has done much of the damage to its own property values over a long period of time. School busing to “solve” segregation was the first strike, where the city lost 100,000 people in a short time. Adjusting for those losses compounded the city’s problem- instead of adjusting to a smaller population, they asked for and got a higher income tax- to be charged to the people who couldn’t vote for the tax. Businesses began their exodus, first to the Kettering Research Park, and then to Austin Landing. Both tax-supported projects that made money for developers- and political donors- and hurt tax collection even more.
The one at Austin Landing is particularly odd- white collar workers don’t get taxed, while blue collar workers do. They just voted to make the district bigger last week;
Three south suburban communities now have more land from which to draw income tax revenue after they approved expanding a zone covered by an agreement.
About 11 acres will be added to the Austin Landing property from which Miamisburg, Miami Twp. and Springboro split income tax revenue.
Legislative leaders from those three jurisdictions Thursday night approved an amendment to increase the Austin Center Joint Economic Development District.
A JEDD is a partnership granted certain oversight authorities, including levying taxes, under the Ohio Revised Code….
The Austin Center JEDD levies a 2.25 percent income tax on all retail businesses and some offices (emphasis added) within its boundaries, according to Miami Twp. records. That percentage is consistent with Miamisburg’s income tax rate. Springboro’s
via 3 jurisdictions vote to expand Austin tax zone .
The city, already plagued with a remaining low income population, which results in lower test scores for students in the beleaguered school system, then began to cut services to families, closing rec centers, not taking care of parks, and cutting basic maintenance like street paving, grass cutting in public spaces, even housing inspection. The great “Model Cities” inspired “Priority Board” system was eviscerated, leaving a skeleton on life support.
In a series of desperate for tax revenue moves, the city worked against existing businesses, picking favorites and subsidizing some businesses while ignoring others. Attempts to “improve” things like their efforts to be real estate developers for the Wayne Avenue Kroger- took millions of dollars- with the city actually “blighting” the neighborhood into failure with a series of options on the “doomed” properties. When Kroger pulled out, no one was fired, or even questioned, on how they could go this far without a contract.
Other cities tried to chase down blight and demolish, only to realize that it was like going down the rabbit hole. Philadelphia finally said enough- instead of allowing property owners the easy route of boarding up shit properties, went after owners demanding that they fix up or hand over.
From the LA Times:
McCall staples a poster to the plywood covering the door. The poster declares the building “a blighting influence,” in violation of a city code that requires all buildings to have working doors and windows. Plywood or other boards are prohibited, and the fine is $300 per opening — per day.
After decades of ignoring the blight that has spread through its neighborhoods, Philadelphia is trying to reclaim its vacant homes through aggressive initiatives designed to compel negligent owners to fix their properties or see them seized and torn down.
via City of Brotherly Love finally tackles neighborhood blight – Los Angeles Times .
McCall is a city employee- and the city realized that boarding up a house actually hurts the value of all the other homes on the block. So do the stickers saying a “house has been winterized” – meaning that water won’t freeze and break pipes- but is also a printed invitation to scrappers to come steal anything and everything inside.
Accountability for ones investments is long overdue in Dayton. From slumlords like Jan Singleton, who has managed not to pay taxes- or take care of his properties for years, confounding the city law department and inspectors- to the city itself, which has no problem charging you $250 to cut your lot- while they have foot high grass on our boulevards.
How can a city have any legitimate authority to tell people to cut grass when they can’t do it themselves? Yet, they can pump a million and a quarter into the developers’ and demolition companies’ hands for the Student Suites project on Ludlow.
Back to the Philly Story:
Neighborhoods where the new strategies have been applied have seen home prices rise 31% over four years,compared with a 1% rise in comparable areas, according to a study by Ira Goldstein of the Reinvestment Fund. The initiatives increased home values by $74 million throughout Philadelphia, Goldstein said, and brought in $2.2 million more in transfer tax receipts.
Philadelphia had been spending millions of dollars a year to tear down vacant properties, and it didn’t seem to be making much headway, said Rebecca Swanson, who directs the city’s vacant building strategy. So in 2011, city officials decided to try a strategy they hoped would prevent properties from becoming run down in the first place.
The city utilized software used by the IRS to track down owners of the vacant buildings. Then the city took the owners to a newly created Blight Court. The door and window ordinance also allows the city to attach liens to property owners’ other personal property, including, in some cases, mansions in the suburbs.
“That was the whole point, to catch them early, cite them for doors and windows, and hopefully that incentivizes the owner to come out of the woodwork and do something,” Swanson said.
Where is the accountability for the money squandered on Tech Town- where tenants pay no rent, driving rents down on other buildings where landlords have to pay the same taxes they always have had to? Ask Dayton Hydraulic and Jerv Janney how he feels about city subsidies of the Water Street project- while his buildings already have to compete with Tech Town? He’s suing the city for a bunch of money – because he’s been backed into a corner.
This is a city that just bulldozed every public outdoor swimming pool. Has committed to spend a million dollars on fixing up basketball courts after a political opponent embarrassed them by hanging 300+ nets on courts that weren’t being serviced (btw- I’ve yet to see a new rim, new pavement, or backboard).
It’s time to stop thinking demolition is the answer. Blight will stop when there is a legitimate reason to live in this city. Saying we’re a leader in demolishing things ain’t it.
If the city “leaders”……..City Council, School Board…. were a person rather than self-serving, self-protected municipal entities, s/he’d be thrown into jail for theft, vandalism and destruction of property. With their monied bedfellows and absolute disinterest in the very real and hurting people in Dayton and the very real and horrendous unaddressed problems in our city, I see no hope for the future of this once-dynamic city. Thank you once again, David, for ‘telling it like it is’ and even providing some photos displaying just two of the things that should outrage everyone who lives there or who has loved the city. There is NO excuse for the demolition mentality, the warped priorities, the uneven treatment of people and businesses, the indifference to the consequences of their cruel or misguided policies. Perhaps an investigative piece in a major publication or on “60 Minutes” (about how not to run a city or about the awful daily outcomes for good people when an oligarchy replaces true community representatives) might do the trick in getting these guys to sit up and take notice that contrary to their cherished beliefs, they are not God and can not do whatever the heck serves them at the expense of so many families struggling to eat and pay utility bills within the city limits. At some point, the chickens will come home to roost.
That Philly blight court is a great idea.
And you made a good call on how unfair that Austin Blvd JEDD is…tax the retail and service industry employees working at the ground floor….but leave the white collar types in the upper level offices free of tax. Something fundamentaly unfair to that entire setup.
The beat goes on.
DDN website June 3, 2014
“Dayton City Commission have approved spending $35,000 to hire a consulting firm to help the city find a new economic development director”
David, from your article, “Accountability for ones investments is long overdue in Dayton.” Indeed. Unfortunately the city charter’s city manager system and part-time mayor & commission system is no way to get that done. Arron Sorell and the his city hall minions have full run of what they want to contribute to or not. Starting a project with a HUD deed restriction – knowing full well? Heads would roll if I were king of the forest.
I agree with about 25% of what has been written in this article. Why only 25%, because only about 25% of the facts are accurate, the rest of the article is opinion and facts twisted around so this winer has some dramatic affect. The city in their arrogance assumed that they could get HUD to remove the usage lean from the Schwind building and have it put on another. The Schwind building was prepped and demolished while the Republicans shut down the government. When the HUD office opened back up, and the City of Dayton made their request, HUD told them to go pound sand. The developer had to redesign the project, lost all his bonding, and could not pay any of the contractors (Asbestos Abatement, Environmentalist, and Demolition contractor). The developer is now trying to secure new funding due to Dayton’s inability to bring to fruition all the promises made to Student Suits, llc. Now there is a million dollars worth of leans on the property, and I do not believe that Steve Papa of Student Suits will ever come back to Dayton. The Author of the story told the readers that the buildings were structurally sound. It is apparent that the author did not have access to the building or the Structural Survey on the building or he would have know the actual condition of the building. I would guess he would probably say the same thing about the arcade across the street as well, which is falling down on its own. No worries though, the Land Mark Commission and the Historical Society will not allow the building to be demolished nor will they fork up the money to make the repairs to the building, but will force anyone who would be interested in buying it and redevelop the Arcade to spend a fortune to preserve something that is not worth preserving and in turn will not be encouraging investors down town where by preserving down town. Everyone with money is going N, S, E and W of Dayton and have no interest in working with the City… Read more »
[…] Sorrell was the one who also said “Oops” when Rauch Demolition mistakenly tore down the … Fourth and Ludlow. He’s also the one who signed off on tearing down the Schwind building for the “Student Suites” deal which isn’t happening due to a deed restriction that was well known. […]