The discussion lasted one-hour last night, but in the end, no other action was taken by the Trenton City Council regarding money owed to the city by Trenton Plaza LP.
Facing a city hall conference room filled with guests and the usual city officials, Mayor Nick McHargue moved up discussion of Trenton Plaza to the first item.
Two weeks ago, the city council voted six to one to write off more than $68,000 owed to the city by Trenton Plaza LP. The topic surfaced last night in an attempt to provide further explanation and respond to questions– of which were many.
In the year 2000, Trenton Plaza had issued a promissory note for $100,000 for sewer work done then by TMU. Plaza Apartments opened in fall of 2001.
City Attorney Tara Walker spoke first to clarify the city council had voted to write off the debt from its books, as recommended by the city’s auditor. But she stated the debt is still collectible if the council chooses. It was noted the remaining debt is due by January 1st, 2018. Councilman Brad Chumbley, who had cast the only “nay” vote last month to write off the debt, made a motion to have the city attorney investigate any avenues toward collecting the debt. That motion died for lack of a second.
Trenton Plaza Apartments initially involved four partners: U.S. Bank, the National Development Council, North Missouri Rural Housing Coalition, and Green Hills Rural Development Incorporated. Once the initial 15 year period expired, Jackie Soptic reported U.S. Bank and the National Development Council left the partnership.
Mrs. Soptic stated the 23 unit apartments, now called Trenton Plaza Towers, is managed by Hamilton Properties. She noted the North Missouri Rural Housing group retains one percent which is to allow the Plaza to continue to be eligible potentially for grant funds.
Low-income housing tax credits were sold as part of the financing for the major rehabilitation work. The Missouri Housing Development Commission, which awarded the tax credits, has restrictions that reportedly kept the rent steady for the first 15 years, as well as for the next 15 years. Spendable income is limited to commercial interests who occupy the building. TMU’s Rosetta Marsh said Plaza utilities amount to $3,500 a month (1 electric meter).
Jackie Soptic indicated taxes are $7,000 annually and she noted apartment furnishings were obtained locally during the construction. The point being made is that the city and local vendors have benefited from the Plaza being open and not left with an empty structure downtown.
Councilman Brad Chumbley, who praised the apartments for being filled to capacity, criticized writing off the Plaza debt at a time that the city council is raising utility rates at Trenton. Vincent Harris told the council that to the public, perception is everything. He said he questioned some council members to see if they understood what they were voting on two weeks ago. Mayor McHargue, who could not vote, said he felt he understood that there are no more funds to pay back the city for work it had done.
Jackie Soptic indicated there’s other existing debt on the Plaza.
A question was asked as to why the council discussed the Trenton Plaza matter in an executive session April 24th. City attorney Walker responded by noting the situation could have evolved into a legal matter if the council wanted to pursue collection of the debt. She noted the council did come out of executive session and conducted the vote in open session. The outcome (6 to 1 to write off the debt) was reported to the news media the next morning by City Clerk Cindy Simpson.
Acting on an offer made by Jackie Soptic to look at each of the audits for Trenton Plaza LP, Councilman Chumbley made a motion to hold a special council meeting to review those documents. After a second was obtained, the council tied four to four to review the Plaza audits – so the motion failed to carry. Mrs. Soptic still offered to let interested council members review those annual audits.
To this observer, the apparent risk is that if the city pursued collection of the debt, the management company could pull out leaving the possibility of eventual closure for Plaza Apartments and displacing the residents who are living there.
