Written by Lisa Kuzela, September 1, 2014: Once again, Cedar Rapids Mayor Ron Corbett, with the help of the media, is stirring up public opinion; this time, it’s about the flooded homeowners in Time Check neighborhood who, after the flood, worked hard to go home. Now, he expects to get their property for next to nothing, claiming that he’s concerned about taxpayer money. I think it’s way past time to be concerned about taxpayer money, and time to uncover the truth about the post-flood buyout history in Cedar Rapids. The first “creative spending” with our disaster funds, was related to the flooded central fire station, which was relocated next to the river at 1010 1st St NW; owned by Lehman, Allsop and Evans, LC (LAE). FEMA’s period of time to reimburse temporary relocation costs is six months, but the City extended it to four years. Even though the property was on the buyout list, instead of acquiring it and using it rent free, we paid LAE $1,502,452 rent. On May 24, 2011, Council approved giving City Manager Jeff Pomeranz full authority to grant relocation assistance, and one month later, we paid LAE an additional $794,350. I still can’t figure out what they had to relocate. The lease ended on October 31, 2012, and the City acquired the pre-flood assessed $1.8 million property for $3 million, in addition to paying $500 of Local Options Sales Tax (L.O.S.T.) toward their appraisal cost – a program that the public was led to believe was only for homeowners. As we all know, no expense was spared for the hotel and convention center, but, did you know that in December 2010, we paid Armstrong Race Realty (owned by John Dusek) $5.2 million for two rehabilitated properties that were pre-flood assessed at $1.7 million? Additionally, we paid tenants to relocate their offices, including $729,000 to a dentist and $595,000 to a business. Homeowners got $850 to relocate their homes. Yes, if it was for their projects, there was no limit on spending the taxpayers’ money. You know that run-down building behind the police station known for haunted houses? Mayor Corbett thought it was an eyesore for the amphitheater, so in 2012 we purchased it for $1.5 million from our Parks Capital Improvement Project (CIP) fund. See how valuable the City thought that property was after the flood? The library has been a contentious issue in our town, and rightly so. February 2010, Council chose to relocate the public library to the then-TrueNorth site on 4th Ave SE, owned by Busse Investments and assessed at $1.5 million. The following month, TrueNorth bought the property for $3.6 million, and six months later, Council approved buying it for $7.5 million. In December, we paid $4 million of L.O.S.T. to cover the gap of the appraised value and purchase cost. Isn’t it great that our L.O.S.T. was used for pure profit to an insurance corporation? And, where do I begin with the value the City put on obtaining the land for the casino? The main buildings were owned by Ilten Brothers and Ilten Ventures. They were rehabbed and back in business. But, the mayor wanted them, and money was no object. The two main properties were pre-flood assessed at $1,071,485, but we paid $1,810,708, and in July 2011, Pomeranz granted $737,862 for relocation assistance. We later also paid $69,747 for relocation assistance; $9,800 for showroom design; $16,575 for moving expenses; $1,655 for searching expenses; $31,716 for a new building sign; and $10,000 for increased cost of operations. All these expenses were paid with the Department of Housing and Urban Development (HUD) disaster funds, however from L.O.S.T., we also paid $1,000 toward appraisal costs and $15,146 for “rent protection” - another program guised as being for residents. Additionally, residential and commercial tenants were compensated directly for relocation costs. Not shocked enough? In addition to using disaster funds to buy homes, businesses and churches that were already rehabbed and in use, the City also acquired homes that were never touched by flood waters! The City didn’t hesitate to open up our checkbook when they wanted to. So, Mayor Corbett, now that you want the remaining residential properties in Time Check, you suddenly claim you’re concerned about the cost to taxpayers? Isn’t it time to be fair about the “fair market values” regarding property acquisitions? What value do you put on “flood protection?”
Posted on: Mon, 01 Sep 2014 15:55:24 +0000
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