BY DONNA SWICEGOOD
A couple of agenda items related to affordable housing sparked a heated debate between some members of the Statesville City Council on Monday evening.
Council heard a report from City Manager Ron Smith about a plan to move forward with some $1 million in unspent funds originally designated for the Statesville Housing Authority.
Smith explained that the funds consisted of more than $700,000 in HOME funds and other funding from grants and donations that were to be used by the SHA.
The funds, however, have not yet been spent.
Smith suggested a couple of plans for allocating the unspent funds. One of those recommendations was to allow the SHA to firm up plans for the funds and have a plan in place within six months. As a part of that plan, the SHA would have to submit the plans, including a timeframe for projects, and to allow representation from the city in the process.
Currently, Smith said, the SHA Board has not been active due to the death of one of the board members, and the city has not had representation on that board. His recommendation was to include someone from the planning and finance departments in the decision-making process for the monies.
The SHA, he said, will add funds to bring the total amount to around $2 million.
The other option is for the city to get project information from other agencies to use the available funds to create affordable housing.
Some of the council members expressed opposition to giving SHA six months.
“I think they’ve had ample time to do this,” Council member Lisa Pearson said.
Smith said this plan will mean the loss of the $780,000 the SHA will contribute.
Smith said the SHA could opt to submit a plan concerning the other funds, along with any other agency that wants to take part.
Council approved the plan to allow agencies to submit ideas for the funds by a 5-3 vote with Pearson and Council members Kim Wasson, David Jones, Amy Lawton and Joe Hudson also casting yes votes. C.O. Johnson, Steve Johnson and Doris Allison voted against the motion.
The second housing issue was related to the plan a divided council approved earlier this summer to place proceeds from the sale of some city-owned property into a fund to help with down payments, repairs or construction of affordable housing.
Matthew Pierce, Downtown Statesville Development Corporation manager, presented a policy for the Affordable Housing Special Revenue Fund.
He said the fund may also include grants, donations and incentives.
The policy, as written, allows council to maintain full control of the funds and review any applications for the monies, Pierce said.
Council members Steve and C.O. Johnson have both expressed their opposition to the plan since it was first presented and voiced their continued opposition at Monday’s meeting.
C.O. Johnson said the plan is not sustainable long term because the money supply may dry up.
Steve Johnson said he wanted to understand how housing became so unaffordable.
Pearson responded by using her own situation as an example. “I am a person that works three jobs. I am single. I have great credit. But, no, I can’t afford a $300,000 house,” she said.
Mayor Costi Kutteh said the proposed policy would set some parameters for the fund. “We need to have some policy,” he said.
An initial motion to accept the policy as presented was defeated 3-5 with Pearson, Wasson and Allison voting for the policy.
Council members then discussed rewriting the policy to specify that the proceeds from the sale of city-owned property would go into the HOME fund as the city’s 25 percent match.
That motion passed by a 5-3 vote with Steve Johnson, C.O. Johnson and Hudson casting the dissenting votes.
Abernathy Park
Council also heard a proposal to donate Abernathy Park to Power Cross Ministries.
Richard Griggs, recreation director, said this request stems from an agreement reached in 2011 to grant a 25-year lease to Power Cross based on making improvements to the park within the first two years. Part of that agreement was that Power Cross would have the option to purchase the park for $80,000 prior to the end of the lease.
Jeff and Natalie Storment of Power Cross told the council that many improvements have been made to the park since 2011. They want the city to donate the park to the ministry and invest that $80,000 in future improvements.
Jeff Storment said the plans include adding to the covered shelter, putting in a playground, adding horseshoe pits and adding additional baseball fields.
Council members questioned the Storments about whether the park would be open to the public or used for Power Cross events only. Jeff Storment said scheduling would be necessary for the baseball fields but otherwise the park would be available to the public.
Kutteh said the partnership between Power Cross and the city has been a positive one. Power Cross could opt to purchase the park and do whatever it wanted with it if the donation is not made.
Griggs said an agreement concerning this will be drawn up and presented to council at a later date.
Economic incentive approved
Council also approved an economic incentive grant of $20,541 to Sheets Laundry Club, which has facilities in Statesville and Mooresville. The grant will be used to expand the facility in Statesville and will add nine to 15 jobs. The grant, in the form of a partial property tax refund, will be paid over a three-year period.