Skinner’s Pressure

Editor, Times-Union:
At last night's presentation concerning the Courts of Colfax, Warsaw’s Community & Economic Development Director, Jeremy Skinner, appeared more interested in pressuring the City Council to a yes vote than addressing legitimate concerns raised about his proposal.
The Council is not a rubber stamp. Its members are elected to ask questions, examine evidence, and exercise judgment. There were serious questions raised, particularly by one resident's POA who came forward to describe concerns about the conduct of the ownership.
Consider the financial picture. Based on the rental revenue discussed, the property appears capable of generating approximately $900,000 annually in gross rent. That raises an obvious question that the resident's POA asked: Where is the money going? Because they are not seeing it in the building.
The property has paid less than $23,000 in property taxes per year. And according to the POA the residents are doing many of the basic services, like cleaning the common areas. The on-site staff consists of one manager and a part-time maintenance employee. Even assuming $150,000 in annual staffing expenses, that would leave approximately $727,000. There are other expenses like insurance, some basic maintenance supply costs, and common area utility costs. Even taking off another $20,000 per month, that leaves $487,000. When looking at a number near half a million, we should wonder where the money is going.
The remaining amount is likely not 100% profit. But a property generating that level of revenue should be able to afford maintenance and improvements without need of government subsidy. How much does the owner receive in payments? How much is paid in management fees? How much is actually spent on repairs and maintenance? How much is reserved for capital improvements? Those questions are essential when the property owner is seeking the taxpayer to cover needed improvements.
We should not incentivize bad actors, but good ones instead. And that brings us back to Mr. Skinner.
Instead of pressuring the Council toward approval, shouldn't a Community & Economic Development Director be helping the Council obtain answers to questions? A great Director should already have the answers ready with evidence to back it up. Warsaw should establish objective standards for PILOT agreements, including financial disclosures and evidence that the proposed tax treatment is necessary to accomplish a legitimate public purpose. Mr. Skinner repeatedly said we need affordable housing for families with kids as a Warsaw need. If that is part of the formula, the problem with that statement is that this project doesn't provide any such units.
Supporting affordable housing doesn’t require us to accept every arrangement without asking questions first. The City Council does not work for Jeremy Skinner. Jeremy Skinner works for the City of Warsaw.
Travis J. McConnell
Warsaw