I have to say I totally agree with Terrell's comments regarding the potential
MCDA shortfalls.  Many of us on this list are familiar enough with the way the
MCDA does business to know that there is significant opportunity for "belt
tightening" at that agency.  Certainly many of the projects undertaken by MCDA
are of value, but often at a shocking cost.  Some of this is due to
relationships with contractors and developers, and some due to "personnel
issues" and bureaucratic CYA.

The MCDA, although improvements have occurred, is not in my opinion worthy of
our tax dollars.  They compete with the private market, and add cost to
everything they are involved with.  There was a house on Chicago Ave that MCDA
wanted to spend $10K to demolish a few years ago.  A reputable non-profit
developer was able to acquire it with much pressure from the neighborhood group,
and after rehabbing it sold it as more affordable than MCDA houses.  There was a
slight profit (about $8K) to invest in other houses that would have otherwise
had a gap between rehab cost and sales price, and the public did not have to
bear the cost of demolition and subsidization of new construction.

Taxes have been increasing faster than is apparent by the rate of taxation.
Consider that property taxes are calculated as a percentage of value, and values
have skyrocketed over the past few years.  In Central, for example, just a few
years ago boarded houses had practically a negative market value, now it's hard
to find a fixer-upper-from hell for less than $60K, and anything that is in
decent shape goes for $150K on up, some offers even at $250K - five years ago
$85K seemed like the limit in our area.  My taxable value has gone up by 100% in
the last two years, with relatively little additional investment in the home.
Oh yes, (effective) taxes have been rising for more than a few years!  Add an
increase in the rate to all of that, and housing just gets that much less
affordable.

Let's get back to city services before we talk about tax increases.  MCDA will
devour any amount of funding that is fed to it - in the meantime things like
snow plowing and graffitti are neglected.  Incidentally, a friend recently found
gang graffiti on his car, and was told by the third precinct to report it to the
graffitti hotline.  The "hotline" folks told him that they would be out in a few
days to get pictures of it, and that's about all they could do.  He washed it
off.  Apparently the hotline is yet another half-baked idea that has not
fulfilled the expectations of the creators.

David Piehl
Central



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