Sycamore (SICKamore?) Village selling fast

[CSense]

Are you against suburban new home development too? Afterall, the region is losing population. Or is only Buffalo on the Titanic?

I'm not against new development, it has to be done logically, practically and sanely. Sickmore Village is not a success on any level,, it's development by the mentally challenged (aka Retards) . Let's break down the project cost.....

24 proposed housing (20 "market rate", 4 low-income)

750,000 Previous site prep costs from failed venture with MJ Peterson
300,000 Purchase of three existing homes
30,000 Demolition of homes
300,000 Remediation Cost
150,000 Site Prep (Blasting)
1,000,000 Sydni Road Construction (including Sewer, water, sidewalks, curbs, utilities)
500,000 Sycamore/Jefferson Improvements (including Sewer, water, sidewalks, curbs, utilities)

Infrastructure (including site prep) alone is roughly $2.9 million (conservatively). Divide by 24 homes, that's a $122,000 subsidy!

Now the cost of the homes, they are selling for $235,000 (which btw come with new stainless steel appliances, even for the low-income families) I wonder how much is actually being subsidized on the selling price versus cost. This is an unknown, so lets make an estimate of $10,000 per unit.

Financing. The city has a line of credit through Fannie Mae @ 4%. So the project has been going on for about 2 years wonder how much cost BURA is eating up while the homes are being built. Let's estimate that the city will lose $1,000 a unit over the entire 2 year period.

Incentives. The city is allocating purchase price subsidies of $7,000 for first-time homebuyers, $10,000 for police/fireman/teachers and HUD is distributing $10,000 for closing cost.

So a typical "market rate" home is costing us $150,000. The six low income homes will cost us $250,000, due to the additional $100,000 subsidy.

Now admittedly, I'm being ultra conservative on my numbers the true costs are conceivably more outrageous and would probably floor even you.

The irony is that not one person would buy the homes if not for the Empire Zone incentives which give city property and state income tax breaks. So on top of the "cash out" we will be losing full valuation for taxing purposes.

So you call this is a success story? Can you please tell me how this makes any sense?

Oh and btw, this may cost the city even more money. You see, when the city took out it's financing through Fannie Mae, it secured the line of credit via it's block grant funds. Thus the money can only be spent on low-mod income families (Tim Wanamaker overlooked that regulation). The end result may very well be the city forking over millions (city funds) to repay HUD for the misappropriation.

Gotta love the insanity.

[Michele J]

AND...not to mention there is nowhere to walk to buy a loaf of bread within 10 blocks of the development...There is 1 chinese restaurant across the street...nothing else going on over there.Economic development or in this case REdevelopment,remove slum and blight(around the corner there are vacants galore) and then you build homes..

[leftWNYbecauseofBS]

Are you against suburban new home development too? Afterall, the region is losing population. Or is only Buffalo on the Titanic?

While the region is loosing population as a whole, there are still more than enough people in the region and in the city to make development work.

In the city of Buffalo alone, 57% of residents are renters. In NYS as a whole it is 47%. As you know, most renting is done in the "Buffalo Double" which is the primary housing structure in the city. These upper rentals are nothing more than 2 bedroom flats.

If development is going to happen, it needs to focus on converting these renters into similar units for ownership. Suckmore Village does not come close to doing that.

Look at all of the development east of Michigan. 50 years ago this was a dense neighborhood with plenty of people and commerce elements. Now all that exists are single family homes. Because this area lacks density and low density developments like Sycamore Village continue to be the focus, the elements that make a neighborhood are not developing as Michele J pointed out. This leads to low property values and a lack of ROI.

[leftWNYbecauseofBS]

What would be a good development is the creation of a mid-rise condo and townhome development across the street from the Broadway market of units that range from $75k to $125k. They should have a strick HOA and CCR.

Start at the innersection of Broadway and Fillmore and go out 2 blocks in every direction at a time. Offer tax breaks for conversion of these units from multi-dwellings to single family units. Allow several blocks at a time to convert to HOA complexes to ensure property values do not go down.

[WestCoastPerspective]

What would be a good development is the creation of a mid-rise condo and townhome development across the street from the Broadway market of units that range from $75k to $125k. They should have a strick HOA and CCR.

Start at the innersection of Broadway and Fillmore and go out 2 blocks in every direction at a time. Offer tax breaks for conversion of these units from multi-dwellings to single family units. Allow several blocks at a time to convert to HOA complexes to ensure property values do not go down.

Condo and townhome development near the Broadway Market? From $75k to $125? What would the subsidy be for THAT?

Hundreds of subsidized homes have been built on adjacent blocks- and unlike the scattered homes in Masten and Cold Springs (and the Burke Homes built east of Jefferson)- the foreclosure rate is low. This is likely one of the most stable neighborhoods, albeit low density, on the east side.

Towne Garden Plaza is just a few blocks from Sycamore Village, there is a deli on Broadway at Jefferson- one block away (and perhaps a few others within walking distance), another at Jefferson and Peckham, and a Rite Aid at Jefferson/William; this isn't Machias folks.

I get the subsidy argument. I also cringe that the homes are being built on remediated land.

These buyers aren't debating whether to purchase a new build priced at $200k or a two-family fixer on Woltz Avenue. It's a new home with a yard in Sycamore Village, or a Ryan home in Lakeview.

[CSense]

These buyers aren't debating whether to purchase a new build priced at $200k or a two-family fixer on Woltz Avenue. It's a new home with a yard in Sycamore Village, or a Ryan home in Lakeview.

Seeing that these individuals bought a home that has no front or backyard it is safe to say they would go for a condo or townhouse. Especially seeing the density and proximity of their neighbors is closer than new builds in the suburbs and some new housing in the city.

That said, I favor new development on sites that are 1) closer in proximity to more stable neighborhoods. 2) Previously residential or commercial , not industrial! 3) Limited subsidies.

I think I stated this before but condos/townhouse should be developed for low-mod than single family homes. Most of these families, if not all, are first-time buyers - long-time renters. They would be better served having to allocate funds to an association fee for the long term capital maintenance of their unit than to have them budget that cost. But more importantly, they would get a more cost effective residence for their investment. Taking out a loan for $135,000 (Sycamore Village) versus a $75,000 loan is enormous, especially for low-mod income families. If developed in the right location (adjacent to stable neighborhoods), the investment could reap them financial benefits in the future.

Unfortunately, Sycamore Village is the quintessential example of retarded planning, criminal incentives and short sighted development practices our leadership (lack their of..) constantly delivers.

It is not the worse of two evils as you've tried to illustrate but rather inappropriate development. Who cares if people move to the suburbs?! Either build correctly or not at all because this kind of development will haunt us for decades.

[leftWNYbecauseofBS]

Condo and townhome development near the Broadway Market? From $75k to $125? What would the subsidy be for THAT?

Why would there need to be a subsidy? There are more than enough people renting on their own in the city AND people who are living in "rentals" via public money.

Here is how I would do it. Provide TAX BREAKS instead of giving SUBSIDIES. Have a developer come in and build 300 units on the site across the street from the Broadway Market. We both live in CA and know what these developments look like.

Give the developers tax breaks to be passed on to the owners. Similar to what happened on the water. Out of the 300 units, place make 75 of those units townhomes and the other 225 2-3 bedroom condos. Since this would be a connecting development, create STRICT HOA regulation to control the quality of life so to speak.

Place the townhomes and 100 of the units on the open market with tax breaks. Take the other 125 units and rent them to the BMHA. This would take them out of the housing business and just act as a conduit of funds. Since there would be strick regulation via HOA rules, the same challenges found in housing projects could be eliminated.

Additional to this, this would place at least 600 residents on a parcel of land that is currently empty. Similar plots on adjacent streets only contain 40 homes. Mostly Buffalo doubles. I would say, if 100% occupied, that would be around 320 residents. Right there you would double your population density.

Additional to this, you would increase the value of surrounding homes AND create the need to retail in the area to increase and increase the usage of existing retail like the Broadway market. This would increase the tax revenue from this section of town.

Hundreds of subsidized homes have been built on adjacent blocks- and unlike the scattered homes in Masten and Cold Springs (and the Burke Homes built east of Jefferson)- the foreclosure rate is low. This is likely one of the most stable neighborhoods, albeit low density, on the east side.

Home are the problem. Single family homes are counter productive to urban areas that are facing decay. They, by way of construction, lower the population density of an area and do not create a community as dense population would in both areas.

Building single family homes says we are competing with the better parts of the city and the suburbs. This is a fight that is never going to be one. What needs to happen are dense pockets of development centered around transportation and exiting retail corridors and work your way out.

Towne Garden Plaza is just a few blocks from Sycamore Village, there is a deli on Broadway at Jefferson- one block away (and perhaps a few others within walking distance), another at Jefferson and Peckham, and a Rite Aid at Jefferson/William; this isn't Machias folks.

This area does not need a deli. We know the pricing structure for those. This area needs a grocery store that charges a realistic amount for a pound of ham or a can of corn. Those places charge what they do because they know thier customers have little choice. Other businesses simply will not come in because there are not enough people.
Say for example a dry cleaner. Say 10% of the area would use a dry cleaning service on a weekly basis. When there are 500 people living in walking distance, you have 50 customers. When there are 1000 people, you have 100 customers. That 50 customer swing can be the difference between opening up a shop or not. Keeping it open or closing.


I get the subsidy argument. I also cringe that the homes are being built on remediated land.

There is a lot of it in Buffalo. I agree. They should have just let it become a park.

These buyers aren't debating whether to purchase a new build priced at $200k or a two-family fixer on Woltz Avenue. It's a new home with a yard in Sycamore Village, or a Ryan home in Lakeview.

This is the challenge. The COB should not be competing with Ryan homes in Lakeview. That is a fight they are NEVER going to win without costing the taxpayer HUGE amounts of money. see. Sycamore.

What the city needs to do is compete with ZERO competion. That is affordable condo/townhome living in either a rential or ownership market.

[kernwatch]

This continues to be painful to watch, especially as the US & NYS economies melt down.

Interestingly, allegedly 11 homes had been sold in a October 30 report, now there are nine. And it is not yet known where those 9 buyers will be moving from.

Although real costs remain elusive on this incredible project, 24 homes at $7 million equals about $290K each. . . as a similar massively subsidized newbuild housing project further up Jefferson Ave is proceeding at BMHA's AD Price public housing complex.

Despite the city's shrinking population (& economy) there is heavily subsidized new housing going up everywhere, as ever more neighborhoods die.

Not good!

http://www.buffalonews.com/cityregio...ry/499347.html

City shows off Sycamore Village, homes on former brownfield site
By Brian Meyer, NEWS STAFF REPORTER, 11/20/08 06:12 AM

Buffalo’s newest residential corridor was showcased Monday as city and state officials visited Sycamore Village.

On the one-year anniversary of the project’s groundbreaking, Mayor Byron W. Brown and other local leaders participated in a ceremony to commemorate the completion of 15 homes.

When the $7 million project is finished, 24 new homes will be situated in a parklike community that is bordered by Jefferson Avenue, Sycamore, Matthews and Mortimer streets. Twenty of the homes will be market-rate residential units, and four will be offered to low-and moderate-income families.

Brown said buyers already have been found for nine of the 15 completed homes. “We had future homeowners interested in these new properties well before a shovel was put in the ground,” the mayor said.

Sycamore Village was the site of a massive environmental cleanup that included a $1 million investment by the state. Brian Reilly, the city’s top economic developer, said transforming the onetime industrial site into a residential neighborhood demonstrates how government partnerships can find new uses for brownfields.

The project’s proximity to downtown’s business corridor is an added benefit. “Downtown Buffalo, in recent years, has become one of the fastest growing neighborhoods in Western New York,” Reilly said.

Planners said the new homes range in size from 1,400 to 1,800 square feet and represent nine designs. Each home has either three or four bedrooms. Ellicott Council Member Brian C. Davis, whose district includes Sycamore Village, noted that the project includes attractive streetscape upgrades. Davis said he thinks the project will help stabilize the neighborhood and serve as a catalyst for future development.

bmeyer@buffnews.com

[kernwatch]

I learned that the buyers profiled in the Sycamore Village press conference (Mr & Mrs Pheland Floyd) have apparently long lived on the 500 block of struggling Berkshire Ave in the fast-slipping 14215 zipcode.

Other recent sales nearby to the Floyds have been $13K (#455, 2/26/08), $33.5K (#512), $26K (#492), & $25K (#459).

Many buyers of previous heavily subsidized downtown newbuilds have also come from struggling city neighborhoods, speeding their decline . . . . at very heavy taxpayer cost.

SEE:

http://buffalorising.com/story/first...e_villag_1#sca

First Phase of Sycamore Village Opens

[Michele J]

I learned that the buyers profiled in the Sycamore Village press conference (Mr & Mrs Pheland Floyd) have apparently long lived on the 500 block of struggling Berkshire Ave in the fast-slipping 14215 zipcode.

Other recent sales nearby to the Floyds have been $13K (#455, 2/26/08), $33.5K (#512), $26K (#492), & $25K (#459).

Many buyers of previous heavily subsidized downtown newbuilds have also come from struggling city neighborhoods, speeding their decline . . . . at very heavy taxpayer cost.

SEE:

careful Dick... doing searches on people who arent wanted criminals could be considered stalking.

[therising]

A few years from now, when this thing officially fails - that is, when 25% of them are foreclosed on, 25% have been abandoned and stripped, 25% were never sold, and 25% start glowing from the soil....the public officials who are taking credit for it now, MUST be held accountable for wasting our money.

And, one of these fools are there for the photo ops now, should have the balls to step forward, and say "Yes, I believe in this so much , that I will put my job on the line if it doesn't work."

[joe d.]

careful Dick... doing searches on people who arent wanted criminals could be considered stalking.

SALES AND PURCHASES a.k.a. REALESTATE transactions are PUBLIC INFORMATION....FOCUS on the info...NOT THE AUTHOR!

[kernwatch]

It is very difficult to ever have a serious policy discussion on SUWNY without it quickly deteriorating into personal attacks.

Michele Johnson, who has aspired to be housing commissioner, should know better. She used to be a strong critic of Sycamore Village, apparently not any more.

Here is the latest post by David Torke, another critic of the latest costly 'newbuild' bonanza:

http://fixbuffalo.blogspot.com/2008/...e-opening.html

Sycamore Village - Opening

While I'd never begrudge anyone an affordable, clean and decent place to live - sometimes you just got to wonder where the priorities are, or in this case, where they've been. The point is this. Closer to the downtown core along so many blocks between Genesee and Broadway and west of Jefferson, there are neighborhoods that were started years ago with some of the most amazing residential urban infill we have in the city. There are streets lined with modest brick duplexes and singles. Houses that fit the city and streetscape and routinely sell in the $60-80K range. Between many of these houses are gaps that need to be filled to create the sort of urban density that could potentially attract retail and commercial development. Simple.



Instead, City planners leap frogged that area and built houses that are ostensibly designed to lure suburban residents to the city and in this case, away from the core and away from downtown. While cool houses like this - corner of Monroe and Sycamore - were demolished to make room for the first phase of these heavily subsidized new builds, it will be interesting to track what the new residents are leaving behind when they move to Sycamore Village. Many veteran observers have told me that new builds along William and Clinton Streets are directly linked back to areas of the city like Hamlin Park - a game of musical chairs. No doubt an interesting trend, where one part of the city grows at the expense of another.


The other long term issue that's looming has to do with environmental issues involving the site's remediation. For the first time I spent some time this afternoon in the Hickory Woods neighborhood, off Hopkins Street. In August I visited Love Canal. Twice in recent memory municipalities have pushed and marketed housing on contaminated sites. Any thoughts on what the story here at Sycamore Village might be in the years ahead?

The other issue is the immediate area's new build foreclosure history. I covered part of that disturbing trend here and here recently. Recent new builds available for the second time around are selling for a fraction of their original sale price!

Lots of questions - why here, when the actual construction costs exceed $205,000/house - and no answers. Here's a flickr stream - Sycamore Village - with site construction pics.

Let me know what you think. Thanks.

[Michele J]

AND...not to mention there is nowhere to walk to buy a loaf of bread within 10 blocks of the development...There is 1 chinese restaurant across the street...nothing else going on over there.Economic development or in this case REdevelopment,remove slum and blight(around the corner there are vacants galore) and then you build homes..

I posted how I feel about this project several times already.. I do not want to keep repeating myself. MY opinion is never going to change its a big waste of money and will cost us millions in lawsuits in the future...
dick..just stop it..focus on Minneapolis.

[WNYresident]

It is very difficult to ever have a serious policy discussion on SUWNY without it quickly deteriorating into personal attacks.

I have had enough of you.