The Dispatch commends the Lexington City Council’s overeager support for Landmark Group’s low- and moderate- income loft complex in the former Elk Furniture Mill:
Landmark says it likely will ask the City of Lexington for street, sidewalk and utility improvements for the project. In addition, the city council in August unanimously approved a resolution of intent to issue up to $10 million in multi-family housing revenue bonds. However, Landmark would pay the principal and interest on the bonds, and the city would have no liability.
On Monday night, the council took the additional step of unanimously passing a resolution of intent to loan Landmark $600,000 – about $6,000 per apartment. Landmark does not expect to need the money but hopes the city’s further indication of support will earn points with the N.C. Housing Finance Agency, which will recommend whether the state Tax Reform Allocation Committee should approve a federal low-income housing tax credit for the project. Failure to obtain the tax credit would kill the project financially.
The resolutions of intent are unprecedented actions that can make citizens nervous. Also, private owners of other rental housing in Lexington might question city government’s involvement in the project. In the face of such potential concerns, council members should be commended for continuing to demonstrate faith in the project – especially with an election three weeks away.
By mentioning the council’s faith in the project with an election three weeks away, I guess the Dispatch is suggesting that council is demonstrating some sort of political courage. Well, if people in control of other people’s money eagerly offer it up to others (even when it’s not sure if they’ll need it) is political courage, then they’ve got it. My guess is the council is confident of low turnout in November.
