$544,000 grant for flood-prone properties discussed with property owners
Jasper — Eight people with interest in several properties in a flood plain on South Main Street in Jasper attended a meeting Tuesday night to hear how the city would use a $544,584 grant to purchase those properties.
The city has been seeking to purchase the properties in the area located in the block — encompassed by South Main and Jackson Street to the west and east and Second and West First Streets to the north and south — since 2011. In 2008 and 2011, the city was forced to place sandbags around the homes to protect them from rising waters from nearby Patoka River.
Currently, the city owns three properties in the block. Under former-mayor Bill Schmitt, in December of 2011 the city approved the purchase of a home at 120 South Main Street due to the owner’s wish to get out from underneath the property and the lower than market value price.
That property has been demolished. A home — 110 South Main Street — going to sheriff’s sale was purchased and then donated to the city in 2013. An empty lot was also donated to the city in 2013.
To purchase the remaining properties, the city applied for a matching grant through Federal Emergency Management Agency/Homeland Security in which the city would pay 25 percent and FEMA the remaining 75 percent, but was subsequently denied due to the affluence of the city.
The grant information was then turned over to the Indiana Housing and Community Development Authority for consideration and in November of 2013, the city learned it had received the full grant for $544,844. It could begin the process of purchasing the remaining properties, of which four have homes and one contains a storage unit.
The eight attendees were concerned about how the city would move forward in purchasing the remaining properties and how that would affect their current renters.
Brian Philps, with the Indiana Housing and Community Development Authority, was unable to attend in person but answered questions from the property owners through Mayor Terry Seitz’ cellphone speaker. He assured the property owners that their renters would have adequate time to find alternative housing during the process of purchasing the homes. They would also qualify for monetary assistance through the Uniform Relocation Rights Program, unless they waived their rights and moved prior to the city purchasing the homes.
Philps assured the homeowners that the process would include two appraisals paid for by the city through the grant. The appraisers would be informed to consider the value of the homes prior to any damages sustained through flooding. The median of the two appraisals would be used to determine the amount the city would pay for the homes.
The property owners are not being forced to sell their properties and can wait to see what the city offers to determine if it is a fair price.
Additionally, if the property owners don’t approve of the offered price, they can pay for a third appraisal but a question of how that would assist the homeowner went unanswered as Philps had already left the conference and was unreachable by phone.
The mayor took the question concerning appraisals and several others regarding how funds would be paid to the property owners under consideration and stated he would attempt to find answers today.
The process of purchasing the properties is expected to take up to six months.
The city hasn’t announced any solid plans for the area yet, but it does fit into the recently completed Jasper Downtown/Riverfront Master Plan.
