Mayor, Citizens, and Water/Sewer Authority Raise Questions About IDA’s Housing Grant Plan

By LYDIA BERGLAR
News Editor

Alex Case (City of Trenton mayor), Elizabeth Zeller (Dade County Water and Sewer Authority interim general manager), and Ryan and Melissa Faircloth attended the January 8th meeting of the Industrial Development Authority, with the Faircloths and Case bringing up concerns during public input.

Early in the meeting, Evan Stone (executive director) reported that Georgia Power requested permission to move a berm in order to move power lines at the north end of the former Price farm (the future North Dade Industrial Park). Georgia Power is happy to replace the berm if the IDA would like, but the board did not see a need for that.

The Sentinel followed up with William Back (recording secretary) after the meeting to see if this discussion is related to the easement on the property. Back reported that this request came from Georgia Power, unrelated to the IDA’s plans for the property.

Later in the meeting, Stone said that Georgia Power has been great to work with. He said, “They’ve already told us, ‘When you get ready, if you get a customer to come in on this property and we need to move those lines, we’ll work with you in anyway.’”

In the post-meeting follow-up phone call, the Sentinel asked Back to confirm that Georgia Power has been contacted about the easement. Back reported that the easement has not yet been discussed with Georgia Power, saying that there is no reason to address the easement until the IDA knows what industry will come to the property.

This contradicts both Stone and what James Cantrell (IDA chairman) told the Sentinel in a November 8th, 2023 article, quoted here:

The Sentinel asked, “Was the IDA aware of the power line easement at the time of purchase?” Cantrell responded, “Yes. That easement can be moved. We’ve already had contact with Georgia Power. That’s not an issue.”

Stone then addressed the state’s workforce housing grant which the IDA has been pursuing since the summer. (See the May 24th, 2023, issue of the Sentinel.) Stone turned to Back for an update.

Back explained, “The concept was to utilize some part of roughly 100 acres that the IDA owns east of Vanguard, between Vanguard and Lookout Creek.” He said that projects with under 50 units were turned down because the state is seeking bigger projects that will have a larger impact on communities.

He continued, “We got turned down on one very large project on Back Valley Road because the prices of the houses and apartments were mixed. Some of them were higher than the guidelines.” The grant requires homes to be sold for no more than $290,000.

He said that the Georgia Department of Community Affairs is looking for projects between 250-350 units, “preferably on the high side of that. We are still looking for developers who might partner with the IDA.”

Back reported that the total estimate for the project is between $55 million and $65 million. This capital, minus the $2.5 million from the grant, will come from the developer. It is intended that the $2.5 million from the grant will then be passed on as savings to the consumers, i.e. renters and homeowners.

Stone reiterated that while this is a government grant, it is not considered government housing, and no government funds will be used for the project in the long term. He noted that the state has a low-interest loan option for developers.

Back reported that the IDA will need to collaborate with the city and water authority, and the IDA needs engineering studies to show that the infrastructure can be supplied.

Stone then reported that the Dade County Commission invoiced the IDA for the Price farmhouse demolition. This expense was just shy of $4,500.

Case then notified the IDA that the authority owes the city roughly $42,000 to cover the additional cost for blasting during Trenton Pressing’s expansion. As previously covered in the Sentinel, a grant covered $75,000 worth of expense to put in sewer that will support Trenton Pressing’s expansion, but Case reported that the blasting cost well over the anticipated $75,000.

He said, “It was solid limestone rock…so we need that additional funding. We’ve already paid the contractors and everybody on this, so we need that money back to the city to finalize that project.”

Tangentially, Cantrell and Case mentioned the state of the IDA’s financing approximately ten years ago when Vanguard came to the county. Cantrell noted that some of these site issues ideally would have been addressed then. Case noted that the city used $450,000 from city SPLOST to pay for permitting for Vanguard due to the IDA’s financial situation at the time.

Robin Rogers (attorney) asked if the $42,000 was “a reasonable and necessary amount for the work that was done.” Case answered that the city only received one contract during the bid process, and since the work is already completed, essentially, the cost is what it is.

The IDA then discussed ideas for a scholarship as discussed during the November 2023 meeting. Rogers reported, “We can’t make a charitable donation. We have to get something back of value for what we’re spending money for.”

As an example of what the IDA could do, Rogers said, “If we’re tying it to an existing need that employers need in order to stay here, and also, the scholarship would require the person receiving the scholarship to work within the industrial park for so many years. We would have a very difficult time giving an open-ended scholarship.”

George Williams (board member) suggested donating money to the school system for Dade County High School’s construction class to purchase materials.

Stone suggested paying for the purchase of PPE (personal protection equipment) to be used during DCHS field trips to the industrial park.

The IDA tabled the discussion for the time being, with Cantrell expressing the desire for students to benefit and for the scholarship to offer long-lasting value.

During public input, Ryan Faircloth asked, “For the workforce housing, do you guys feel like a $250,000-$290,000 house is workforce affordable?”

The IDA agreed that a $290,000 is not affordable for the target workforce, but that number is the high end of the grant’s guidelines, and they hope for cheaper housing to result from the project.

Faircloth asked, “What happens when those houses are built and no one buys them?” Back answered, “The developer has to look at the local market and gauge a price that the developer feels can be sold.”

Faircloth said, “I don’t see that as affordable. What I’m seeing as affordable these days, with inflation and all that, is people buying single-wide mobile homes and buying a piece of dirt for $5,000-$10,000…some people are even moving into RVs to be affordable. I’m all for making money and all that good stuff, but if you build 300 houses, I just wonder what the real economic impact is going to be on our community.”

Back noted that some of the units will be rentals, capped at $1,040 per month for two bedrooms/one bath. “The grant people have not specified what kind of rental increases will be available each year. The standard, though, is the rent should be no more than 30 percent of the median income within Dade County.” He said the rent must be stabilized for ten-year periods.

Currently, Census.gov lists Dade County’s median household income as $59,531.

Melissa Faircloth then asked if the land in question is within the City of Trenton (it is) and therefore, how is it zoned. Case answered that the land would require a zone change to become residential. Melissa asked who would have to go before the zoning and appeals board. Case answered that the IDA would be responsible.

Melissa noted that the Faircloths personally have learned that lot sizes must shrink in order to make affordable housing financially feasible for developers. (As previously covered in the Sentinel, the Faircloths have plans to build small houses on small lots.)

Case answered that the government has to follow the exact same process as individuals and private companies. He said, “They’re going to have to spend some funds if it goes forward for engineering. We’ve just seen solid limestone, what it costs us per foot for water, sewer. At this property, it’s a concern.”

Melissa said, “My other concern here is, we were told whenever you were reaching out into the unincorporated areas of Dade County with no zoning that you were doing so because you had no more land left for industry, and now you’re saying you have land to build 300 homes. That’s somewhat contradictory of what you said before.”

Back answered, “The land east of Vanguard is either very rough and rises about 150 feet, parts of it, it’s old growth forest, parts of it are flood plain, and there just isn’t enough critical mass to give relatively level land. When you have land that’s very uneven, it’s either suitable for wilderness or residential. Houses are so small, they don’t have to be on flat area.”

Melissa responded, “I see what you’re saying, but dirt can also be moved. Where Wal-Mart sits used to be a massive hill. If these large companies come in, they have those funds.”

Back noted that the IDA originally purchased the land years ago because it was inexpensive. He said the area would require a much more substantial road to support industrial trucks and traffic. He said, “It’s a great question. It’s a very tough area to develop unless you’re building small buildings.”

Melissa asked about the flood zone. The IDA explained that parts of the land in question are in the hundred-year flood zone. Stone said, “They just fly over and declare some of this area [flood zone], and you can go back and ask for certain areas to be [reviewed].”

Melissa responded, “If you’ve ever had to cross flood insurance, you’ll know that you wouldn’t want to build in a flood zone.”

Faircloth asked, “Have there been any studies that show the economic impact…any studies of Atlanta, Birmingham, that show, when people are really pushing industry, what does it do in the ten, twenty, thirty-year term of a society?”

Stone responded, “I’m sure there are a great number of studies, both pro or con, depending on what avenue you wanted to try to look at.”

Faircloth responded, “I’ve looked them up, and it’s both pro and con…What are we really looking at when you build 200-300 houses that possibly won’t sell?”

Melissa also asked how additional families would impact the school system and (therefore) taxes.

Stone reported that he has spoken with Josh Ingle (Dade County Schools superintendent), saying that Ingle is in favor of the housing project. Stone explained that the 2011 tornadoes caused a decrease in student enrollment. Stone reported about 2,400 students were enrolled before the tornadoes, and now about 2,000 students are enrolled, so the schools have the infrastructure in place for additional students. (Note that other factors may also be at play in the decrease in enrollment.)

Stone continued, “They would also receive per student, I think Ingle said it’s right around $6,500 from the state for every new student.”

Melissa noted that 300 homes could result in 600 or more additional students. Williams asked where the 300 number came from. Back repeated that the range is “the high 200s to 300s.” Williams said, “That’s depending on getting a developer to do it.”

Case then addressed the IDA, explaining that the number of homes must be determined for sewer and water needs. “It’s a big deal. We had this in a meeting, and I gotta be careful here because we’re in an open meeting, but you’ve gotta spend money for this engineering, you’ve gotta have numbers, you’ve gottta have the lots set up. We’re doing the same thing–both city and water authority.”

He later explained that the engineers for the water authority use 5,000 gallons per household as a monthly average. “Then, it’s gotta come back into the sewer…Our engineers have to be involved.”

He continued to explain the complicated nature of such projects and the tight timelines, especially when a government grant is involved. He concluded, “It’s gotta be this board’s decision, is it feasible to do?”

Cantrell noted again that the IDA hoped to find a use for the 100 acres, saying, “If you want us just to back off of this and leave it alone, we can do that.” Case responded, “That ain’t what I’m saying. I’m just saying we’ve got some more homework to do before we decide if we’re going to do this.”

Case added that because of the limestone, it would cost more to build homes on the land in question than it would in other areas of the county.

Cantrell said that as a general contractor himself, he would be willing to take the risk because of the grant and cheaper property, concluding, “If the houses don’t rent or don’t sell, that’s on the general contractor.”

Case also explained that the water line will dead-end in this proposed subdivision, meaning a break in that line leaves no back-up water supply and affects fire protection. “This [grant process began] six months ago, we should’ve already been designing what we wanted and getting these rough prices.”

Stone said that information is still being gathered, and that this grant is not as simple as others because it is a new grant being administered for the first time.

Case added that one way in and out, as well as the railroad, could lead to emergency response issues.

Back concluded, “The problem with these grants–Alex just made this point–you have to have a lot of engineering before you can even apply for the grant, before you even know the grant’s going to be available. You do these projects and spend ten, twenty, a hundred thousand dollars on engineering reports, before you have the opportunity to apply for a grant…We did apply through the pre-application.”

After a roughly two-hour long executive session, Back reported that the board approved three motions. The first motion was to modify the existing lease with BeccaSam Solar (a solar energy company leasing five acres of land from the IDA).

The second motion directed Stone (as executive director) to establish a bid process for the sale of approximately 28 acres west of I-59. (This is a portion of the old Price farm that the IDA has deemed unsuitable for its purposes.)

The third motion granted an easement to Chattanooga Industrial Motors (or its affiliate) to store construction components on IDA land adjacent to Vanguard Drive.

The IDA’s next meeting will be on February 19th.