Ferdinand Town Council: Begle apartment complex on track for completion in 2017

Members of the Randy Begle family were on a roll Tuesday night (August 9), starting with garnering required certification to apply for a residential tax abatement.

This step was in the purview of the Ferdinand Economic Development Commission, the body that has been actively looking at how to expand housing in Ferdinand.

Commission member Mike Cummings commented, “I applaud you for the duplexes and in-fill development you have done,” but wondered if this would lead the next person who wants to build a home to seek an abatement.

Attorney Bill Shaneyfelt noted, “To put it bluntly, they would have to build a hell of a house [to qualify].”

Chances are a single family residence would not. However, “If a housing developer commits to building multiple homes this may be where we encourage them [to apply for an abatement].”

The Begles, including Randy, Diane and their son, Dakota, returned for the Ferdinand Town Council meeting later in the evening.

Randy and Dakota, who is 21 and in his final year studying finance at Purdue, explained their vision. They own a 3.528 acre parcel north of the Industrial Bypass on the west side of SR 162. Now a bean field that has never been developed, they wish to build a 2.5 story, 12 unit apartment complex on the parcel. All 12 units will feature two bedrooms and a bath, four on the first floor, four on the second and the final four built into the roof line. Simultaneous to this, or actually a bit ahead, Randy plans to build two duplexes, one at 5th and Delaware and the second at 5th and Alabama, although Alabama was never developed so the entrance will be accessed from 5th Street. These would be two bedroom, two bath units with a garage.

The Begles combined the two projects for the abatement, which qualify under the strictures of the certification process and therefore for the abatement.

The four year abatement was approved at the council meeting. Property taxes would be abated 100% the first year, 75% in year two, 50% in year three and 25% in year four.

Ordinance 2016-14 was adopted, declaring this to be an economic development target area. In addition, Resolution TA 16-01 was passed, declaring the sites to be economic revitalization areas within the Town of Ferdinand.

As part of the process to make this apartment complex a reality, the council scheduled a public hearing for 8 p.m. on September 13.

Dakota Begle will be the owner of the apartments, his father explaining he is helping him secure the loan.

Dakota said he met with Ed Cole from Dubois Strong who shared the results of a county-wide housing survey. Specific to Ferdinand, the study revealed that with the rental vacancy at 0% there is obviously a need for 25-50 rental units within one to three years. “We can’t build near that fast [the Begles hope to add additional apartments in the future].”

Dakota believes they can help fill that void.

However, the up front costs came in higher than expected. Dakota completed an amortization schedule [he is, after all, a finance major] and the original 12 units came in at $860,000 preliminarily from Universal Design. With 20% down, that leaves $700,000 to borrow and pay back. Including all fees (attorney, accountants, etc.) the return would be $3,000 per year if everything goes like clockwork (highly unlikely)and every unit is filled.

Wastewater Superintendent Roger Schaefer reminded the council that Randy and Diane Begle invested $8,000 — paid to the town — to have a sewer line run under the Industrial Bypass — which will save money. “They already have skin in the game,” he opined. “If we had to bore under the road it would be much more costly.”

“We’d like you to view helping with the utilities not as a cost, but as an investment,” Dakota added.

Schaefer noted thisexisting extension would help with potential future housing developments.

The Begles see this as the start to other developments along the bypass. Dakota said Cole explained the bypass is a fantasy right now as no development has occurred and this could be the start.

Randy Begle said it is ironic, he stood before the council 30 years ago when he was in his early 20s seeking approval for some duplexes for his then-employer, Ed Ewing. Now he is back with his 20-something son making similar requests, although requirements have gotten stricter over time.

Council members all agreed they like the idea. “We’ll have to see the numbers,” said Councilman Ron Weyer. “I’m all for it [helping with utilities], but we have to justify it to the rate payers.

Shaneyfelt noted that while four inch lines would suffice for the Begles’ development, the council should consider larger lines looking to the future.

Schaefer and Electric/Water Department head Henry Haake were directed to provide firm cost estimates so the council can decide how and to what extend they can help.

Meanwhile, the Begles will continue crossing all the t’s and dotting all the i’s necessary to create both the apartment complex and duplexes.

Randy Begle said the golden shovel should go in the ground in February and if weather and contingencies allow, the projects should be completed by December 31, 2017.

The council also:

-Agreed to close Maryland Street from 8th to 10th for a car show during St. Ferdinand Catholic Church’s Picnic August 28. Property and Street Superintendent Tom Lueken was able to check with all residents who would be affected, save one. The Town will send a letter to the night-shift worker who has been unavailable to make certain she is okay with the closure, which will last from 8 a.m. to 4 p.m.

-Heard reports from all department heads and granted several requests to attend special training and also, from the Park Department and Property and Street Manager Tom Lueken, to attend a special session in Indianapolis to help garner a grant for improvements at the Old Lake recreation area.

-Gave approval for a water rate study, to be completed simultaneous to a sewer rate study by HJ Umbaugh. Since the two projects will be done together, Umbaugh dropped the price for the water rate study from $10,000 to $8,000.

-Approved a contract with the Lochmueller Group to engineer the Westside water main and the Best Home Furnishings water line extension.

-Heard updates on projects in progress, including phosphorous abatement . The town received a letter from the Indiana Department of Environmental Management and while that body did not change the timeline, the letter said as long as the work continues on its current trajectory IDEM would accept the delays, which are primarily due to a slow process with Rural Development, tapped to finance the project.

-Heard from Town Manager Chris James that work is progressing on a northside welcome sign which will be similar to the sign at 5th Street Park. This is a joint project with the Ferdinand Chamber of Commerce and, because the town does not have electricity in the area, will rely on solar lighting.