July 22, 2024 |
Photo – Rear view of Cathy Gardens Apartments in Rawlins – Courtesy Google Maps
The Rawlins city council waived $46,000 in permit fees for a low-income apartment rehabilitation project.
Cathy Gardens Apartments is a 40-unit housing complex that was built in the early 1920’s. The facility served as the original home of Carbon County Memorial Hospital until 1977, when it was converted into the Cathy Gardens apartment complex. The building, which is home to low-income senior residents, is in need of major renovations.
During last week’s Rawlins city council meeting, Community Development Director Lou Lascano said Michigan-based Ide Development LLC is asking the city to waive more than $46,000 in permit fees. Lascano said company owner Benjamin Ide estimates the Cathy Gardens rehabilitation project will cost nearly $5 million to complete.
Lascano said as tenants leave, the remaining residents will be moved into the vacant units and their apartments will be renovated. The residents will then be moved back into their freshly remodeled units.
Ide Development LLC owner Benjamin Ide said he is applying for a competitive tax credit grant through the Wyoming Community Development Authority. Ide said the permit waiver will count as a financial contribution from the city, increasing his chances of receiving grant money.
Councilwoman Jacquelin Wells asked if the facility’s malfunctioning elevator will be replaced. Ide said yes, the entire complex will undergo extensive remodeling and repairs.
Councilwoman Tonya Lewman pointed out that the city typically only waives a percentage of a permit fee because landfill workers must still deal with the construction debris. Mayor Terry Weickum said by dismissing the entire $46,500 fee, the city is providing Ide with a greater chance of being selected for the Wyoming Community Development Authority grant. The facility desperately needs major renovations, said Mayor Weickum.
Councilwoman Wells asked how the city can be sure that Cathy Gardens will remain low-income housing after the renovations are complete. Ide said Section 8 funding is tied to the facility itself, not individual tenants. Government regulations require Cathy Gardens to qualify as Section 8 housing for at least the next three decades.
Councilman Darril Garner asked how the project will financially benefit the city. Ide said he can’t guarantee that all the supplies will be purchased in Rawlins. The logistics of the job will be left up to a general contractor. However, Ide said due to the remote location of the city and the type of work they’re doing, local subcontractors will be needed.
Vice Mayor Steve Sanger asked what will happen to the money if the city waives the fee and the WCDA grant isn’t approved. Ide said the money will be lost. However, the city should consider the fee waiver as a way to improve the community, said Ide.
Vice Mayor Sanger agreed, saying when the project is complete, Cathy Gardens will generate additional property tax outweighing the $46,000 fee application.
An attendee asked the council if they could demand the fees be paid at a later date if the Cathy Gardens rehab project is successful. Mayor Weickum said he doesn’t believe the Wyoming Community Development Authority will give a loan the same consideration as a gift.
Councilman Garner said he would like to postpone the vote to waive the $46,500 permit application fee. The councilman said city attorney Pinita Maberry-Nave should review the grant application to determine if the city can demand the fees be paid back.
Mayor Weickum said the money the city is losing will be repaid many times over in the future.
Councilman Garner motioned to postpone the vote. His motion died for a lack of a second. The city council then voted to waive Ide Development LLC’s permitting fees for the Cathy Gardens rehabilitation project. The motion passed with Garner as the sole dissenting vote.
Ide said he will submit the Wyoming Community Development Authority grant application at the end of September.
