Demo delay costing city thousands

DAYTON, Ohio (WDTN) – Dayton may be paying thousands of dollars extra to finish demolishing a building because of a federal agency’s delay.

Work has stopped on the Schwind building until funding is approved to cover the rest of the demolition.

City Commissioners were considering a measure Wednesday that would provide the extra $215,000.

City officials say the problem is a deed restriction on the building from the federal government because the Schwind building used to have affordable housing units.

When the government shut down last year, so did Housing and Urban Development’s ability to remove that restriction.

“We had been working with HUD to have it moved,” says Planning and Community Development Director Aaron Sorrell. “I don’t think anybody thought in September when the last budget expired that HUD would lose its Congressional authority to move these restrictions.”

We called HUD to ask about the delay but have yet to hear back.

The building is supposed to be replaced with apartments for 350 students but the developer Student Suites can’t get the financing with the restriction still there.

That’s why the city has to pay the extra $215,000 to finish demolition.

“The project needs to be completed,” Sorrell says. “We have a deadline that is approaching.”

We asked and we were told the extra money the city is providing is what other communities couldn’t use from a state demolition grant.

It means fewer houses the city will be able to tear down, but officials say the trade off is one they’re willing to make.

“Absolutely,” Sorrell says. “The goal is to still have 350 beds of student housing on this site.”

If the money is approved demolition is expected to start again soon.

The project is now set to be finished in the fall of 2015, a year later than first planned.

blog comments powered by Disqus