Interesting Winston-Salem Journal story on the city’s proposed plan to acquire 22 undeveloped lots in the Lake Park subdivision. Residents are supportive of the plan as long as the city maintains the standards that the original neighborhood restrictive covenants:
In addition to banning such things as exterior clotheslines and the long-term parking of boats and campers, the restrictive covenants set a minimum house size: 2,000 square feet for a two-story house; 1,700 square feet for a single-story house; and 1,900 square feet for a split level.
Such were the standards applied to original construction. But in 2011, the covenants were amended to allow smaller houses: A single-story house could have a footprint of as little as 1,200 square feet, with a minimum size of 1,500 square feet for a two-story house and 1,350 square feet for a split level.
Key part of the article is at the end, where City Council member Jeff MacIntosh tells the finance committee that the deal should be a good one long-term for the city, even if there’s no immediate payback.” An interesting comment considering the Journal explains that the subdivision was started in 1990 with a $275,000 loan from the city:
Jose Isasi, the president of Lake Park Development, told city leaders in 2016 that he put $400,000 of his own money into the project to start building houses, but people complained that houses in the neighborhood didn’t appreciate in value.
The sale of lots has been stagnant for many years. Isasi asked the city for an extension to pay back his loan in 2016.
Recently, Isasi told the city that he would not be investing any additional money in the development.
City administrators are telling council members they have determined that the best thing to do is for the city to forgive the remaining balance of $167,500 on Isasi’s loan and in return accept ownership of the unsold lots.
Perhaps in another 28 years the Winston-Salem will at least make its money back on Lake Park. Fifty-six years—I’d say that’s a long-term investment alright.