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The Verde Independent | Cottonwood, Arizona

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2/8/2014 1:21:00 PM
Cottonwood provides loan to launch senior housing project
The City of Cottonwood has agreed to loan $120,000 for the Highland Square Senior Apartment project.
The City of Cottonwood has agreed to loan $120,000 for the Highland Square Senior Apartment project.

Jon Hutchinson
Staff Reporter

COTTONWOOD -- The City of Cottonwood has agreed to provide a $120,000 loan to help get the dormant Highland Square Senior Apartment project off the ground.

Proposed to be constructed at Candy Lane and Mingus Avenue, the project hopes to use low-income housing tax credits from the Arizona Department of Housing for the project. The project was shelved five years ago due to the floundering economy. The council unanimously agreed to the loan.

Steve Hastings, director of Real Estate Services for the Foundation for Senior Living, and Terry Campbell of Campbell-Hogue & Associates recently met with Mayor Diane Joens and Administrative Services General Manager Rudy Rodriguez to discuss the possibility of a local government contribution from the City toward the project that would entitle the developer to additional points on its application for tax credits.

The funding mechanism is highly competitive.

Under the scoring matrix for this program, such local government contributions can take the form of a cash contribution; HOME contribution; CDBG contribution; deferred or cash flow loan; donation of land; or waiver of fees.

The city and the partners discussed the option of an "in-kind" donation using roadway rights but that option did not quality.

The dollar figure is an amount equal to about 2 percent of the construction cost.

In exchange for this sum, the developers would execute a promissory note that would provide for monthly payments back to the City from the project's cash flow over a five-year period at a rate of interest that approximates what the City would receive if the funds were maintained in a safe, conservative deposit or investment. The note would be secured by a "letter of credit," a guarantee from a bank or other financial institution that the payments will be made as promised and required.

Taylor Waste

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Reader Comments

Posted: Saturday, February 15, 2014
Article comment by: Ondine nic Manannan

Economic Development--So you'd turn Cottonwood-Clarkdale-89A into a poor child of Prescott Valley? Just so you can more impetuously go shopping?

Myself, I'd rather go over the mountain, or to Phoenix, for those things I cannot now find here in our smaller, less clamorous shops . The prospect gives me pause to think...Do I really need this? Is it worth the trip? Often, I find it was just a passing fancy that I could well forego. Sometimes in favor of more homely wares. Sometimes to save myself from an extravagance.

You might want to contemplate the blight of fast-food joints and big box stores marching row on row across our view of Mingus.

Posted: Thursday, February 13, 2014
Article comment by: Economic Development

My complaint is the city does not do enough of this. This is a LOAN. It will be paid back. Why do so many have to drive over the mountain to shop in Prescott? Because Prescott uses incentives to get all the major stores to build there. Many were upset that so much was provided to get Trader Joes to Prescott. It took 6 months for the city to recoup the investment and start reaping major new economic return. We will never get major economic return if the city does not wake up and start attracking business with incentives. Until then we will all have to buy the gas to drive to Prescott and let them reap the ecomic return.

Posted: Wednesday, February 12, 2014
Article comment by: N J

Just saying, remember their names. Did you read the article?
As an aside, sometimes there are reasons for only initials.

Posted: Tuesday, February 11, 2014
Article comment by: @ NJ - yes remember them -

So you can thank them for doing a job that nobody else obviously wants to do and for taking no end of grief for it.

Rather than 'remembering their names' why not put on your big boy or girl undies and run your self under your own name.

Somehow we don't imagine we will be seeing 'NJ' on a ballot any time soon. Easier to toss stones in comments and be a 'Wednesday morning council person' rather than actually run or even attend or watch the meetings on tv.

Posted: Monday, February 10, 2014
Article comment by: N J

Remember the council member's names come next election.

Posted: Monday, February 10, 2014
Article comment by: Do people even read these before they bash the city/council ?

Good thing the folks on the council were not running for a popularity contest.

The article says that the $ is to help get points on the application for the funding, they tried to use the $ already spent on mingus ave. but it did not qualify.

One thing the article does not mention, thank god for the video/live broadcast on channel 2 or the internets... they city is out nothing unless the place is approved and even then the city will get interest on the loan as well as 60 new senior living places.

How folks can bash that is a mystery but par for the course and expected.

Funny how none of them ever run for council though... easy to talk the talk but not walk the walk.

Posted: Monday, February 10, 2014
Article comment by: Kevin Perry

How is it that Terry Campbell of Campbell-Hogue & Associates can use city money to help fund a project when they already own 3 complexes in town Aspen ridge, Mingus & Courtside Apts If you make a profit of $ 50,000+ a month at Aspen Ridge and profits at Courtside why would you want to scam the city out of money and did they finally buy the property/parcels from the legal owners as they had not last time they wanted the project or are they trying to slide it thru again.

Posted: Sunday, February 9, 2014
Article comment by: Hard to ignore hypocrisy

So on the one hand yes promoting affordable senior housing in Cottonwood is a step in the right direction, considering the poverty rate in this town exceeds the overall Arizona rate, and median household income in Cottonwood is one-third less than the statewide average.

On the other hand it's hard to miss the fact that Cottonwood just nailed its water users with a massive 67% rate increase for those residing outside city limits, and a 34% increase to those residing in the city.

The excuse? Need more cash for debt service.

Yet it clearly is absolutely no sweat for this city to cough up more than $100K for this project, with few assurances that money will ever be repaid.

That's because there's more where that came from, a lot more. Financial audit records show Cottonwood holds literally tens of millions in excess cash reserves.

While we hope this project is successful, all this just goes to show how the water rate increase was unnecessary. As is their excessive 3% city tax on rent and food.

The underlying reasons why the people of Cottonwood are poor won't change until we elect more independent minded and assertive people to the city council.

It's not supposed to be government by the government for the government.

We need elected representatives who will prioritize the people of Cottonwood over the city government.

Posted: Sunday, February 9, 2014
Article comment by: Mary Jane

In exchange for this sum, the developers would execute a promissory note that would provide for monthly payments back to the City from the project's cash flow over a five-year period at a rate of interest that approximates what the City would receive if the funds were maintained in a safe, conservative deposit or investment.

So the interest would be 1/10 of 1%?

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