By G. MICHAEL GRAHAM
Fort Thomas Matters Reporter
Many people
know what kind of economic impact this major acquisition from the U.S.
Department of Veterans Affairs and refurbishing would mean to the city of Fort
Thomas.
The city
recently made huge step toward that when City Administrative Official Don
Martin drew up a two-year plan memorandum and presented it at a city council
meeting in March. The hope is to see the 12.554-acre property in Tower Park
that includes five single-family and five duplex homes occupied in the fall of
2015.
“The correspondence between the city and the VA is
very professional and courteous,”
Martin said. “The VA staff currently
assigned to this project seems anxious to see it move forward. The biggest
delays are a result of legal reviews at the VA.”
Once the
project is completed, Martin and staff estimated property values will run
between $6 and $7 Million. That would mean about $24,000 in extra property tax
revenue to Fort Thomas and $48,000 in more tax revenue to Fort Thomas
Independent Schools. Martin even noted $25,000 in payroll tax revenue could
come during the construction process.
It is no
secret the value of the property has depreciated over recent years. The
property’s appraised value currently runs at $510,000 compared to $2,480,000 on
July 25, 2007. The property has devalued by about 80 percent.
The plan
noted the $510,000 value did not come via a re-appraisal. The value would be
higher if the houses could be torn down, which is not permitted. That reduced
the value of the property by $290,000.
The reason
the homes can’t be torn down is because the property is included on the
“National Register of Historic Places boundaries of the Fort Thomas Military
District.” The memorandum noted the agreement between the city, VA and Kentucky
Heritage Council “is to ensure the preservation of the historic integrity of
the structures by preventing their demolition and applying Architectural Guideline for their preservation, restoration and rehabilitation
of the exteriors of the buildings.” The memo said no restrictions came
regarding renovating the interiors of the homes.
Martin and
staff put together an estimated minimum bid of $903, 512 as compared to the
previous minimum bid of $1,595,000 that did not result in any bids back in
April, 2011. The deadline for those first bids was June 24, 2011. The memo said
the city does not have to buy the property if it can’t find a purchaser.
The costs
are broken down four ways. After the appraised value, the VA Administrative
costs are estimated at $166,712 with the removal of hazardous materials
estimated at $126,800 and $100,000 in the city’s administrative costs.
The city
recently approved the documents and the signed Memorandum of Agreement was sent
to the VA. The VA gave an estimated return of 90 to 180 days to approve the
document. Once returned, the memo said the VA will let the city, possible
bidder and subcontractors access to the buildings to be able to look for ways
to execute their bid.
The memo
also said the successful bidder must also execute additional steps. That
includes communicating with utility companies facilities for things like water,
gas and phone use.
Martin did
note that the city will keep a part of the property as “park property.” That
area is the center lawn area, behind the houses and the hill looking toward the
river.