TOWN OF EASTON, MARYLAND
Port Street/Easton Apartments
Kevin Bell LLC
March 15, 2004
Councilmember Maureen Scott-Taylor Councilmember Moonyene Jackson-Amis
Also in attendance were the Town Clerk Mr. Robert Karge and the Town Planner Mr. Tom Hamilton.
At 6:00 p.m., Mr. Kevin Bell of Bell LLC was present to discuss Easton Apartments and a development proposal for Port Street.
Mr. Bell stated that he is a developer specializing in using a federal program of tax credits to build affordable housing apartment units. He stated that he has done a number of projects utilizing this program over the past eight years. Mr. Bell stated that he is also an attorney and a member of the Maryland Bar. He discussed his background and current projects.
Mr. Bell discussed what the program involves. He stated that there is a program from the Federal Government by which the Feds make available to each state on the basis of population, tax credits which are administered in Maryland by the Department of Housing. Mr. Bell discussed the application process for tax credits. He stated that he gets about $.80 on a dollar for each tax credit that he sells. Mr. Bell stated that this program enables one to build very high quality, fine buildings and still have the rents be affordable. He stated that this housing is targeted towards workforce housing like secretaries, hospital employees, home health workers, civil servants, fireman and teachers. Mr. Bell stated that what he is proposing to do in conjunction with the Easton’s Public Housing Authority, a project on Port and West Street.
Mr. Bell stated that the next round for submission for this tax credit program is May 3. He stated that he is hoping to get an application submitted by that deadline for this project.
Mr. Bell showed a conceptual plan for the proposed project. He discussed forming a limited partnership that would own this project. Mr. Bell discussed other parcels that are currently owned by the hospital as well as the previous Moton School. He stated that he is trying to impact the whole neighborhood with buildings that will blend well with the community.
Mr. Bell stated that Mr. Don Bibb has talked about some opportunities across the street for home ownership.
Mr. Ford asked Mr. Bell what he would need as part of his application from the Town of Easton.
Mr. Bell stated that he would need two things: 1) a resolution of support for the project so that he can demonstrate local support and 2) long term subsidy from the Town in the form of a PILOT; an abatement of a certain amount of taxes for a limited amount of time. He stated that he needs $100 per unit for a period of ten years which would calculate in the amount of $8,800 per year for ten years which can be part of the local resolution.
Ms. Jackson-Amis asked if any other part of the Town was looked at for this project.
Mr. Bell stated that he did look around but this looked like the most promising site. He stated that he does projects in mostly urban settings and the kind of thing he is familiar with.
Ms. Jackson-Amis stated for the record and for the Council that this was brought to her attention that he has been engaged with town officials, Mr. Bibb and the hospital. She stated that the reason it is problematic for her is that this is in her ward and she just found out about it on Friday and he is making the presentation on Monday. Ms. Jackson-Amis stated that more importantly, in 2001, one of the things in the particular community that he wishes to impact is that the homes that would be built on any property that would become available would be built for ownership purposes. She discussed negotiations between Memorial Hospital and the developer for Elm Street. Ms. Jackson-Amis stated that this is troubling to her knowing that the Town of Easton had supported these negotiations; that this was part of an ongoing process and that the hospital would change its mind and Mr. Bibb would try to do something else instead of trying to work in concert with the ongoing project. Ms. Jackson-Amis discussed the need for home ownership. She discussed using Moton School for trophies, awards and things that lead a trail to the experience of the African American in this community. She stated that she can see this new housing as eventually displacing the current residents in this community. Ms. Jackson-Amis stated that she is not against Mr. Bell’s product but that is not the entire issue. She hopes that the Town will look at the greater issue and consider continuing with the project as originally said we wanted.
Mr. Bell stated that this is the first time the Council has heard of this. He stated that he has had discussions with Mr. Bibb and Mr. Joe Ross, the President of the hospital. Mr. Bell stated that he was not aware of any other plans for any of these properties. He stated that the use they are going to be put to is up to the owner of the parcels. Mr. Bell stated that he is in favor of developing home ownership in the community.
Mr. Ford suggested that possibilities be explored of melding the two conceptual projects.
Mr. Bell stated that he thinks that is a possibility. He stated that he would like to sit down and discuss ideas and input.
Mr. Wendowski stated that this project has a lot of merit and should move forward in conjunction with the Town Planner and the Planning Board and explore the possibility of the two projects moving forward.
Ms. Jackson-Amis stated that she had recently contacted the developers of Elm Street regarding African American developers. She stated that it is important to her that some of this work be subcontracted in such a way that people that live in these communities that are able to, should build and reap the economic benefit of these projects. She questioned if this project would be bid.
Mr. Bell stated that she has legitimate concerns. He stated that no one in this neighborhood will be displaced. He stated that it is his intention that anyone that lives in this neighborhood now in existing public housing units or the school house, that if they want to live in this project it is his intention that they will. Mr. Bell discussed Section 8 Vouchers.
Mr. Bell discussed minority contractors and his partner who is African American. He stated that he will instruct the general contractor to include as much minority subcontracting as he can on this job.
Ms. Jackson-Amis stated that it is up to the Council to live up to the agreements made as well as the community.
Mr. Ford stated that this conversation should be continued. He stated that it is unclear at this time if the May 3 submittal deadline is realistic. Mr. Ford stated that the Council needs to take a serious look at this project and the possibility of incorporating the concessions from the Elm Street developer.
Mr. Bell agreed.
At 6:54 p.m., the President of the Council recessed.
At 6:56 p.m., the President of the Council reopened the meeting.
Mr. Walter Chase, First Vice President NAACP questioned how much rent would be for the units for a development of twelve million dollars.
Mr. Bell stated that rents are estimated for one bedroom units at $500. He stated that the amount you pay per unit depends upon what your income is. He discussed median ranges.
An audience member asked at the 50% income level, what the rent would be.
Mr. Bell stated that with a one person household, 50% median income which is $22,855, 4 person household is $32,650. Mr. Bell stated that these units could be rented to someone with up to 60% of median which is $27,426 and four person 60% median is $39,180. He stated that if you come in and your income goes up passed the median, you are allowed to stay up to a certain level.
Mr. Jensen asked if the units accept Section 8. Mr. Bell stated that yes they do and by law, they are not allowed to refuse Section 8 or are not restricted by age.
ADJOURNMENT
There being no further discussion, the President of the Council adjourned the scheduled meeting at 6:59 p.m.
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Town Clerk