So, I asked a question in a private meeting the other day . . . and I’ve had people ask me the silliest questions ever since . . . . My question was “Why is the CDA bonding going towards Pres House?”. It was a question about number 5 and 25 on the council agenda of June 20th, 2006. The best explanation of what we are doing is in the fiscal note which says:
The bond issue in an amount not to exceed $17,000,000 authorized by this resolution will be used to fund construction of a 43 unit apartment project owned by Presbyterian Student Center Foundation, Inc. Although issued in the name of the CDA, these bonds are payable solely from housing project revenues. They do not constitute an indebtedness of the City or the CDA. The CDA will receive an issuance fee of approximately $56,350 in conjunction with this transaction. This resolution has no other budgetary impact.
Truth be told, I did say something to the effect of “Why are we issuing bonds for a religious facility?” and “Isn’t there a separation of Church and State issue?” Someone tried to argue that the Pres House wasn’t a religious facility, and I argued that it was. Although this is an issue that I asked about . . . my real concerns go much deeper than that.
I wanted to know more about the details of the program . . . but about all I could find on the city website was this (scroll down to the bottom).
Housing Revenue Bonds/Rental Housing Bonds
Contact: 608/266 – 6558 ext. 311
When I asked about the program I was told “Don’t worry, it’s a good thing. The CDA will make money.”
But that’s not the point. This is a tool that could create affordable housing. I wanted to know what the specific terms of the program required. What benefit is there to the developer for using this program? How affordable is the housing? How long does it have to remain affordable? How does a developer learn about this program? What could we do to have more developers use this program if it is beneficial? What are our priorities for this program? Why would we be using it on student housing? Is there a limit to how many bonds we can issue? Can we put stricter rules on the bonds? etc. etc. etc.
But I haven’t heard answers to any of these questions and I certainly can’t find them on the City website. Instead, people seem fixated on the fact that I asked a question about the church/state issue as a legal curiousity. What I really need to know is:
- Why this project?
- Why we don’t use the bonds more often?
- What are our priorities?
- How do people find out about the program?
- What is being done to promote the program?
- Why don’t we use it more often?
And after reading more about the program, I don’t understand why this tool is being used for a student facility . . . just doesn’t seem to fit the objectives of the program.
And on the religious issue, geesh . . . settle down. I just asked a question. Didn’t know it was so offensive to be curious.
