Affordable housing project's viability questioned

NORTH EAST — The Town Board’s business meeting on Thursday, Dec. 10, was better attended than most. Its public comments time opened with taxpayer Jeanne Rebillard making a request of the board. It had to do with Housing Resources, the applicant behind the proposed affordable housing project, Millerton Overlook, which is planned for construction near the intersection of routes 22 and 44 in Millerton.

The application is currently before the village’s Planning Board. Housing Resources Executive Director Kevin O’Neill was on hand Thursday, however, to ask the Town Board to extend the time period for completing the project from 2007 (when it was originally slated for completion) to 2011. That request was based on a letter from Housing Resources, submitted to the board at its Dec. 3 workshop.

But Rebillard was prepared for that request, even before it was revisited on Dec. 10.

“I’m here for the vote you’re considering for Housing Resources,� she said. “Kevin O’Neill indicated he’s been away [from the Planning Board] because of financial issues. The Planning Board meeting had to be postponed tonight [because of those same issues]. I am asking the Town Board to postpone voting on extending its grants until a full financial credit check has been done on Housing Resources.�

The grant compliance agreement letter relates to the $108,000 Community Development Block Grant Housing Resources used in 2004 to obtain the property for the project; it was the town that was awarded the grant to make that purchase possible. One question, according to town Supervisor Dave Sherman, is if those funds are now at risk. Those and other questions were raised on Thursday, but not before taxpayer and resident Joanne Scasso spoke during public comments.

“I think there are a lot better locations [for an affordable housing complex in the village],� she told the board. “Under the circumstances, don’t you think there should be a vote on that [decision to grant Housing Resources more time to complete its project]?�

Their comments were entered into the minutes, as well as onto the audio tape, and asked to be raised again later in the meeting when the issue was slated for an in-depth discussion. Another reason it was asked to be revisited was because two councilmen, Dave McGhee and Tim Shaffer, were not present at the start of the meeting to hear either Rebillard’s or Scasso’s concerns.

By the time the board’s agenda approached the affordable housing issue, McGhee was seated at the table (Shaffer did not make it to Thursday’s meeting). Rebillard repeated her request for the board, while O’Neill said he secured financing to begin construction in spring 2010. His statement was met with little confidence and repeated requests for postponement.

“The postponement has less to do with our financial statement  and more to do with the unusually high cost of the review process to complete the extra engineering and reviews for planning costs that are 10 times more than are typical,â€� O’Neill said. “That’s what’s caused the delay. We have money coming in January and I hope to make that payment [into our escrow account] in January.â€�

“That’s what I’m waiting for is January then,� said town Councilman Dave McGhee. “That’s my vote and I told you — if there’s not finances there I can’t see going forward with it.�

“What happens now even if we grant an extension to 2012?� asked town Councilman Carl Stahovec. “I don’t think that’s enough time. What if the project is not completed by then? How many times can you ask for an extension? Are we liable for $108,000?�

“I can deal with that,� McGhee said. “I’ll take the brunt from the public if [this project] doesn’t go through.�

“I feel differently about it. Some people have very heartfelt feelings and I understand that,� Sherman said. “My thoughts about this is if this board does not act in this matter favorably, it hobbles the applicant.

“Essentially, this board, this town, is in the process of trying to recover funds. We would be in quite a mess [if we couldn’t],� he said.

“What’s the consequence of waiting until January?� asked town Councilman Dan Briggs.

O’Neill said simply that the application process would be postponed another month.

“That would be postponed again if you don’t get the money,� Stahovec said.

“Obviously there are people who are opposed to this project in any way, shape or form,� Sherman said. “I don’t see how you’re approaching this with an objective mind.�

“You’re doing the same thing,� McGhee countered. “You have an opinion and so do I.�

Councilman-elect Steve Merwin spoke from the audience.

“Dave, a lot of people are very unhappy with this project. You’re trying to push this through because you’re losing your vote,� he said. “It seems like there are a lot of questions right now.�

Rebillard then added that she and her husband, Brad, have been painted as being in opposition to affordable housing, when in reality they just have concerns about this specific project. The two have a business, Dutchess Country Realty, adjacent to the Millerton Overlook site. They have expressed concerns about engineering issues, mostly dealing with water drainage.

“To say we’re opposed is [incorrect],� she said. “My questions are valid questions. They’re not opposition. We’re just asking for one month. I think that this project could not keep on track with the Planning Board tonight speaks volumes.�

“It is important that tonight’s meeting had to be canceled because of finances,� said Dave Shufelt. “We have to make sure going forward that we’re dealing with an entity that can complete the project. I respectfully ask you wait 30, even 60, days.�

Rebillard’s husband next requested an executive session to discuss “information beneficial to the board and community.� He was not granted the session.

“I think a lot of us want to kill the project right now and that’s not going to happen,� Briggs said. “I don’t see why we can’t postpone until January.�

O’Neill reiterated that there’s financing lined up and described the wait as more of a “clerical thing.� He said more waiting is difficult due to “the extraordinary expense and reviews� of the project.

“Waiting a month, there isn’t going to be any further enlightenment,� he said. “We need to complete SEQRA [State Environmental Quality Review Act] and special permits before we can start to work on securing the financial.�

“What if there’s a positive dec?� asked Rebillard, referring to the environmental review that could require a lengthy and detailed investigation into how the project might impact the immediate area and affected habitats. “That will change a lot of things.�

Resident and taxpayer Sia Arnason spoke in favor of the project, which she said would be of great benefit to the older generation. Millerton Overlook is slated to have nine senior apartments out of the 20 total units; the remainder are to be marketed for families.

“I am concerned with delaying this wonderful project,� she said. “An extension is not going to make any difference to any of the people here.�

“The delay was triggered by them not paying escrow,� pointed out Rebillard. “It becomes issues that have tentacles. It really has nothing to do with senior housing. To say they’re going to break ground by 2010 — that doesn’t even seem reasonable because they’re going to have to have permitting.�

“I don’t really have a problem with a two-year extension, though I don’t really think it’s going to pan out,� Stahovec said. “At the same time I don’t think a month, two months or three months is really going to make a difference.�

McGhee then moved to table the issue until Housing Resources can either come up with the money or not. Briggs and Stahovec voted in favor of the motion. Sherman did not.

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