Groundbreaking in July 2007.According to records in the tax assessor's office at City Hall, nineteen condo owners are paying full taxes at 400 East Front Street, while the city is only collecting a partial assessment of $128.21 annually each on the balance of the 63 condos.
The development known as The Monarch was projected early on to bring in $400,000 in annual taxes, but to date less than one-third have been sold. Tax Assessor Tracy Bennett said Thursday she did not know that now some units are occupied by lease-to-buy tenants.
The trigger to full tax assessment is issuance of a certificate of occupancy. Construction Official Joseph Minarovich said such certificates are now being issued on the rental condos, although Bennett said she has not yet received that information. Once her office is informed, the assessments will be adjusted, she said.
The concept of leasing to buy the condos was floated as far back as November 2009 (see Plaintalker post), but condo owners say they noticed an influx of renters starting in January.
The building includes a senior center and veterans' center, promised at no cost to the city. Last year, developer Glen Fishman's firm, P&F Management, sought reimbursement from the city for costs of fitting out the center and condo fees that the city owed for the center. Terms of the development agreement call for the center to pay 13.96 percent of building maintenance fees. The veterans' center is supposed to pay 1 percent of maintenance fees after all units are sold and it is turned over to veterans for $1.
The City Council was surprised in April 2010 to get the tab in excess of $250,000 for the "free" senior center and the matter has yet to be resolved. Click here for Plaintalker's post. Meanwhile, because the senior center is in fact a condo, monthly common fees of $2,750 continue to accrue.
--Bernice Paglia
Once again, a bad idea from our current administration has gone awry. Thank you, Sharon. The tax payers get taken to the cleaners again.
ReplyDeleteWhat is amazing is that the seniors got a lot for $250,000 that includes heat and air conditioning. Yet $450,000 was spent on the Tepper's building and all that was included were a few walls and no heat or air conditioning.
ReplyDeleteThe feds really need to investigate the Launtenberg grant and follow the money.
What a scam! This Mayor and her decisions has been BAD for the city. I can't even tell you how disappointed I am with her and her administration. I'm sure the owner of the building is just "begging" for a CO. All of the tax breaks come on the heels on the city's property owners who are paying more than their fair share for ????
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