Tantalizing front page article in this morning's Standard-Examiner, focusing on the heretofore mainly unheralded efforts of the the Godfrey administration to revitalize the Ogden Central City area, by purchasing, refurbishing, razing and/or rebuilding dilapidated residential properties, and then putting them back on the local real estate market:
• Renewal a home at a timeLong-time Emerald City political wonks will remember when the Godfrey administration negotiated an exclusive agreement with the U.S. Department of Housing and Urban Development (HUD) to purchase foreclosed or otherwise repo'd HUD properties, fix them up, and then "flip" them for a profit. Well, according to this morning's Scott Schwebke story, it would appear that the administration has become quite deeply (and possibly successfully) involved in that. As a matter of fact, it would appear that Boss Godfrey may have simply ditched the original plan (to refurbish and sell these properties to low-income residents) and instead put together an in-house operation which might arguably be the biggest "real estate flipper" in Ogden City.
At the time the administration negotiated this HUD agreement, we recall significant grousing from members of the Ogden real estate community, inasmuch as this insider deal would squeeze private investor "flippers" out of the HUD repo market. Moreover, we heard complaints that these properties, once placed into Ogden City ownership, would erode the local tax base, inasmuch as city-owned real estate is exempt from the property tax rolls.
Disregarding for the moment the above two objections, we'll say that from the point of view of central city aesthetics at least, the photos accompanying Mr. Schwebke's morning article do convey a suggestion that Godfrey's inner city real estate may actually be a success. A couple of "before and after"pictures tell a couple of thousand words:
We gotta say we loved these particular before and after pics. And we do confess we did ask ourselves whether a hypothetical private investor/flipper would have devoted the necessary capital to removing that grotesque "Faux Greco-roman Revival" facade... and to expending the extra dough which was obviously required for the highly-detailed "Victorian Style" restoration and remodeling.
We'll admit our curiosity was piqued by this morning's Schwebke story. Unfortunately, Mr. Schwebke left us hanging. What's missing from Mr. Schwebke's story is the financial bottom line. Is Godfrey's Central City Fixer-Upper Project operating at a profit, or even a break-even? Or is this project running in the red, like most other administration projects?
Ace Reporter Schwebke had the opportunity to deliver a blockbuster story this morning; but he instead delivered another puff piece, we think.
Financial figures, Mr. Schwebke! That's what thoughtful Emerald City lumpencitizens want to see.
Before closing, we'll also add that we're not unaware of the intangibles here. Aside from increasing the property values of neighboring properties, in what other ways do the projects which Mr. Schwebke touts benefit the taxpayers? The value of removing "problem" apartment conversions from the Central City area is something to which nobody can readily attach a dollar figure. Does Boss Godfrey rightfully deserve to place his Central City Fixer-Upper Project in the column labeled "successful?" Should those fiscally-conservative lumpencitizens among us make an exception to the general rule, i.e., that local governments should not be directly involved as "principals" in real estate development?
Even though it's a holiday, we're sure that there are more than a few WCF readers who'll check in here today. Hopefully today's article will provide fodder for at least some new WCF discussion.
Take it away, WCF readers.
