State agrees to put up $1 million toward New Albany's Linden Meadows

Homepage

Related Photos

The Linden Meadows development in New Albany. Staff photo by Kevin McGloshen

Discussion

April 22, 2010

By DANIEL SUDDEATH Daniel.Suddeath@newsandtribune.com The News and Tribune Thu Apr 22, 2010, 09:58 PM EDT

NEW ALBANY — Linden Meadows could soon be transformed from its state of blight to a viable development, as the state decided Thursday to spend up to $1 million to rehabilitate the New Albany neighborhood.

Linden Meadows would be re-branded to include a mixed development of affordable and market rate houses, with likely a new name to boot, if a partnership between the state and a private developer comes to fruition.

The funding proposal was approved by the Indiana Housing and Community Development Authority, or IHCDA, which is the same agency that stopped work at Linden Meadows last year and backed a second mortgage for the property.

Federal dollars would actually be used to rehabilitate and resell 11 houses at Linden Meadows under the state offer. The funding comes through the federal HOME Investment Partnerships Program, with IHCDA overseeing the disbursement of the money for Linden Meadows.

The deal hinges on PNC Bank — which owns the property after New Albany-Floyd County Community Housing Development Organization, or CHDO, defaulted on its loan last year — agreeing to sell Linden Meadows.

Captain’s View LLC was chosen by the IHCDA as the new developer for Linden Meadows. The state will put up $300,000 toward a PNC settlement with Captain’s View responsible for the remaining share.

It was reported last year PNC wanted $500,000 for the development, though the bank has declined to comment on Linden Meadows since it’s involved in a lawsuit against CHDO over the approximately $1.1 million defaulted loan.

Dan Chandler, a New Albany attorney who is representing Captain’s View, said PNC has committed in writing to a new payoff amount as long as the deal is closed by June 15.

“Immediately upon closing, the developer plans on making site improvements such as clearing brush and addressing vandalism,” Chandler said.

The state’s offer is based on a survey it funded last year, which estimated the cost to rehab Linden Meadows at $1.7 million. Chandler said the total cost of the project will be approximately $2.7 million over two years.

“While IHCDA is putting in $1 million, the developers are making a very large investment with their own funds, too,” Chandler said.

The state would use its remaining $700,000 as a line of credit for Captain’s View and as a fund to subsidize housing costs for low-to-moderate income homebuyers.

State and city officials are pleased that IHCDA and Captain’s View will attempt to save what once was a promising development.

“We’re happy that we’re working with a private developer that brings some private equity,” said IHCDA Executive Director Sherry Seiwert.

“We are very happy to have a positive outcome and certainly look forward to having the developer get under way on the reconstruction of Linden Meadows.”

The plan involves demolition and rehab of some of the existing houses at Linden Meadows. Many of the homes there are still boarded up and have never been occupied since they were moved following the expansion of Floyd Memorial Hospital and Health Services.

Mark Young, chief operations officer for IHCDA, said the determination on which houses stay will be decided by Captain’s View.

“It will depend on whether or not they feel the houses are marketable,” Young said.

Mayor Doug England and State Rep. Ed Clere supported the plan set forth by Captain’s View.

“We’re going to see the neighborhood totally reversed and brought back to where it should be,” England said. “It will be another asset on our tax rolls and instead of being an eyesore and a deficit, it will be something positive.”

The city has no ownership in Linden Meadows, but has proposed to foot some improvements if the Captain’s View deal is finalized.

Subject to funding availability, the city will look to upgrade paving and drainage, as well as expand street lighting along Linden Meadows Court.

The city has pledged to implement a concentrated code enforcement sweep along Olive and Linden streets leading into Linden Meadows, and expedite the building permits and inspections for the development.

In a letter to the developers, England said the New Albany Sewer Board would have to consider whether to waive tap-in fees for the houses. The board agreed recently not to pursue unpaid tap-in fees at three houses in or near Linden Meadows.

There are no direct cash support offers tied to the city’s proposal to Captain’s View — which consists of developers Loney Williams Jr. of New Albany and Matt Toole of Corydon.

“This project could not have been possible without the support of Mayor England,” Chandler said.

Teamwork from multiple agencies and the private developer led to the solution, Clere said.

“I’m really excited for the folks who live in the surrounding neighborhoods,” said Clere, as many adjacent landowners have complained about the sub-par conditions at Linden Meadows and how they impact property values.

Clere credited IHCDA for staying the course despite the setbacks following the defaulted CHDO loan.

“I appreciate [IHCDA’s] willingness to stay involved and be part of a solution,” Clere said. “As a junior lien holder, it would have been easy for them to walk away and instead, they stepped up.”

Young said the state will maintain a close watch on the project if a settlement is reached between the developer and PNC.

“We are requiring them to use an administrator that we’re very familiar with to make sure they’re using the federal funds correctly,” he said.

Lt. Gov. Becky Skillman serves as chair of the IHCDA board. She said that after months of planning and discussion, New Albany residents can look forward to “ a new and vibrant Linden Meadows.”

“Boarded-up windows and dilapidated structures will be replaced with a mix of rehabilitated and newly constructed houses for families to call home,” Skillman said.

Text Only | Photo Reprints

Homepage

Search Results

Related Photos

Discussion

State agrees to put up $1 million toward New Albany's Linden Meadows

Site Map

Contact Us