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The city Redevelopment Authority/Land Bank is trying to hash out how it will proceed with housing development, and whether it will continue to seek an executive director to guide the process.
A couple months ago, the organization received an unexpectedly high bid from the single contractor who responded to a request for proposals for renovation of a badly dilapidated, but fundamentally sound, frame house on 21st Avenue -- one the organization hoped would become the pilot for a program that emphasizes rehabilitation, rather than demolition, of blighted homes.
At its most recent meeting, that disappointing bid led to discussion of a variety of options for the 21st Avenue property -- and by implication, future potential redevelopment efforts -- options the board intends to choose from at its next meeting this month.
The earlier RFP drew little interest, as the project seemed too big for the "little guys," and too small for large contractors -- one of whom ultimately put in a bid for $292,000, which didn't include some work that would be necessary to make a desirable property.
It's not likely that a rehabilitated house in that Fairview neighborhood could command anything like $300,000 to cover expenses for such a project, said Mayor Matt Pacifico, a board member.
The options that will be debated this month include: advertising the house for sale as-is to a developer, who would then take responsibility for rehabilitation; reroofing the house and cleaning it up to create a "cold, dark shell," prior to advertising it for sale; or demolishing the house.
Selling to a developer might lead to a more financially feasible proposition than simply hiring one to rehabilitate the house, officials said.
The unsuccessful RFP convinced him it's better to let "the private sector do it," rather than for the city to be the developer, as initially planned, said Ron Beatty, board member and city councilman.
Within the basic options, there are other, nested choices that could be considered: engaging a developer to rehabilitate the house, but holding title, pending completion of the project, to maintain leverage and ensure the work gets done right; versus offering to sell the property outright, so as not to make it harder for the developer to use the property as collateral for a construction loan.
Some developers might be put off by plans for the city to hold title until completion, according to organization Chairman Richard Fiore.
And yet a county redevelopment authority in western Pennsylvania that was featured at a recent blight symposium holds titles for such properties, pending completion of projects, said Ron Beatty, board member and city councilman.
One concern is that projects would not be completed if they "get into the hands of the wrong people," said Codes Director Rebecca Brown.
The organization plans to create an "approved list" of developers that have the wherewithal to complete projects, officials said.
That list should be open to anyone who's qualified, including large and small operators, to be fair, said board member Jessica Sprouse.
But developers ought to have the financial wherewithal to handle projects without needing to use the properties they're working on as collateral, according to Beatty.
Requiring that completed houses be sold rather than rented after rehabilitation will likely limit the pool of willing participants, Fiore said.
The fewer barriers the better, he said.
Still the Fairview neighborhood where the 21st Avenue house is located is tilted toward owner-occupancy, said city Community Development Director Diana White.
The organization should consider potential input from Penncrest Bank, which forgave the mortgage on the house, which was headed for foreclosure -- a $35,000 donation to the city, according to Beatty and Louisa Lobre-Riley, a board member.
The bank is welcome to send a representative to the next meeting, Fiore said.
The 21st Avenue house is on a corner property, which might be big enough for two homes, if the current house is demolished, one official said.
The organization could wait until after a city consultant completes its revisions of the zoning and planning code, before embarking in earnest on the rehabilitation program, White said.
An executive director could work with the Department of Codes and Inspections to bring houses as early as practical into a rehabilitation program, so they don't get to the point where they're so hard to fix up, like the 21st Avenue property, Beatty said.
An executive director could also work with faith-based and nonprofit organizations to help low-income homeowners deal with code issues, so that there isn't a need for their houses to enter the program, Beatty said.
An executive director could be an employee of the city for whose services the RA/LB pays, to avoid the need for the employment-related accounting that would be required of the RA/LB otherwise, officials said.
Mirror Staff Writer William Kibler is at 814-949-7038.