Ogden City Council Examines Quality Neighborhood Initiative Before Extending Program | Local news

OGDEN – Ogden City Council continues to consider a mayor’s proposal to expand the city’s quality neighborhood initiative.

Before the panel votes on whether or not to continue the program for the next five years – which includes mandatory approval of $ 5 million in city funding – some council members are considering their concerns about the proposal.

According to the city council’s records, the Quality Neighborhoods program was first adopted in November 2015 to coordinate various programs, strategies and funding sources to help stabilize and revitalize certain neighborhoods. The program uses multiple sources of funding, including federal community development block grants, lease income from Business Depot Ogden, and government and other local funding sources.

The program supports neighborhoods near downtown Ogden – especially the east-central neighborhood. The area has long been one of the most economically stressed areas in the city and has been a target for redevelopment for years.

Ward Ogden, Ogden’s Community Development Manager, said the initiative had been successful and helped drive positive change in several areas of the city center. In the five years since Ogden first adopted the program, the city has completed $ 3.13 million in revitalization projects and used an additional $ 2.4 million to repay work-related debts. The projects carried out by the city range from the demolition of old, destroyed buildings to the renovation of single-family houses and the construction of completely new subdivisions.

But Councilor Luis Lopez said he was concerned that rising house prices are putting the program-related housing options out of reach for many Ogden residents.

According to Estimated Weber County property ratings in 2020, median home values ​​increased 11% over the past year compared to 2019. The median is the midpoint for Weber County’s home values, with half being worth more and half being worth less. And according to the Utah Association of Realtors, the average price of a house sold in Weber County rose a staggering 28% from January 2020 to January 2021, rising from about $ 281,000 last year to $ 358,000 this year.

Tom Christopulos, director of community and economic development for Ogden, said that while the global housing market has raised the prices of apartments in connection with Quality Neighborhoods Initiative programs, it appears that the city has very little control over them.

But Lopez questions the validity of the program when even most “middle class” Ogden residents can’t afford affiliated homes.

“What I am hearing is that the funds we are using here are for building houses that are not affordable for people who are not making a lot of money,” Lopez said, adding that he has seen as the nearby city advertises homes for $ 400,000. “I’m talking about, could we try to do some kind of construction … that (doesn’t) make houses that cost $ 400,000 but maybe $ 300,000? Something along those lines.”

Christopulos said with the cost of construction what it is, the only way to do what Lopez is suggesting would be direct subsidies, which would be extremely difficult for the city to manage.

“We used them specifically (initially) to get them into the areas you are talking about,” said Christopulos. “But market forces are so strong. This is an economic problem and a supply problem, it is not a political problem that we can deal with. There are things we can do about it, but right now in the market where it is , is it.” would require extremely high subsidies, which is not a pragmatic solution in the current environment. “

In a previous council discussion on the matter, Councilor Rich Hyer expressed concern that the program and funding was essentially limited to one area of ​​the city.

Ogden and Christopulos acknowledged Hyer’s point of view that there is decline and deterioration across the city that can be addressed, but said prioritizing the city’s core for revitalization should ultimately help those areas as well. On Tuesday, Hyer said he understood this concept, but noted that it was difficult to reach out to his constituents who live on the north end of town and to witness continued city-initiated redevelopment near downtown.

“I understand the reason they want to focus this money. It’s really difficult to answer the voters,” said Hyer. “Maybe we need to make our news better. Explain why we do what we do.”

The council’s executive director Janene Eller-Smith said the common refrain Hyer was referring to is that residents have problems with the city by using “my tax dollars” on projects that are not close to their neighborhood , don’t be comparing apples to apples when it comes to the Quality Neighborhoods Initiative.

The program calls for an annual infusion of $ 1 million from the city’s Business Depot Ogden leasing fund, which is not taxpayer’s money. The city collects rental income from tenants who work in the BDO business park and divides the money 50-50 in a public-private partnership with the Salt Lake City-based Boyer Company. After expenses, the city raises about $ 8 million a year there, a figure with no property tax revenue.

The city is expected to vote on the five-year extension for Quality Neighborhoods next Tuesday.