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Grants to help fix up homes

Lodi Council approves city's first redevelopment program

By Chris Nichols
News-Sentinel Staff Writer
Updated: Thursday, October 2, 2008 5:40 AM PDT

Lodi's first-ever redevelopment program — which promises to help Eastside residents spruce up their homes — was approved 4-0 by the City Council on Wednesday night.

Paint-Up/Fix-Up will provide grants of up to $10,000 to low-income and moderate-income residents to make minor repairs and improvements to the exteriors of their homes.

Mayor JoAnne Mounce was absent.

The program will be funded by redevelopment revenue and start in July 2009.

The council approved a redevelopment district this summer amid much debate. That district encompasses more than 2,000 acres in the city, including all of the Eastside and several commercial corridors that stretch into central Lodi.

Redevelopment districts allow cities to keep a greater share of property tax. That additional revenue must then be spent by the city on improvement projects that will benefit residents who live within the district.

Wednesday night's vote and public hearing on Paint-Up/Fix Up was decidedly quiet.

In other action

  • The council voted 4-0 to approve $5,000 in start-up funds for Project Lodi Art's sidewalk mosaic medallion design competition. Open to all residents, the competition will use 24 winning mosaic designs for permanently installed sidewalk medallions. It will be part of the East Lodi Avenue Improvement Project.

    Entry forms and more details are available at Hutchins Street Square, the Lodi Public Library, City Hall, Lodi's Parks and Recreation office and the Lodi Boys and Girls Club office, or at www.hutchinsstreetsquare.com.

  • The council rejected Councilwoman Susan Hitchcock's symbolic proposal to terminate the city's General Plan update contracts. Hitchcock had argued that her fellow council members have haphazardly approved major development changes of late without first finishing the General Plan update — a document that will guide the city's growth for the next 20 years.

    She cited the council's decision to allow Reynolds Ranch to double its retail component last month as a major change.

    She added she did not intend to slow the General Plan update process, and never intended to vote to cut funding herself.

    "It was to check the pulse of the rest of the council," she said after the meeting.

    Her fellow council members said they did not feel haphazard changes were taking place.

    The General Plan update is not expected to be complete until sometime in 2009. City officials acknowledged the update has been delayed by a couple months, partly because of other projects that have moved forward, like the Wal-Mart Supercenter project. Rad Bartlam, the city's interim community development director, serves as the lead consultant for the update of the planning document. Dyett & Bhatia, a San Francisco-based consulting firm, is also contracted by the city. To date, Bartlam and the firm have been paid $39,023 and $512,903 respectively, according to city figures.

    — News-Sentinel staff
  • "This is kind of a landmark action that we're taking," Susan Hitchcock said, after a call for public comment on the matter produced no speakers from a sparse audience at Carnegie Forum. "This is the first expenditure of redevelopment dollars (in the city of Lodi)."

    Eligible properties for Paint-Up/Fix Up include any owner-occupied, single-family residences, duplexes or mobile homes "where there is a legitimate need for improvements," according to the city guidelines that were approved. The properties must be located within the redevelopment district.

    Eligible work includes: Painting, stucco repair, repair and replacement of damaged wood siding, replacement of windows and window frames, replacement of exterior doors, door hardware and deadbolts, repair and replacement of roofs, landscaping and several others. A city-approved contractor would perform the repairs and improvements.

    Both Hitchcock and Councilman Bob Johnson said they'd like to see low-income and very-low-income residents given top priority.

    The rest of the council agreed, removing the program's "first-come, first-served" stipulation.

    For a family of four, the very-low-income category will be $30,650 or less. The low-income and moderate-income categories for families of four will be $49,050 and $61,300, respectively. Residents in all but the very-lowincome categories will be required to pay for 20 percent of the work.

    Payment from the city would be made upon completion of the work.

    While city officials are moving forward with redevelopment programs, a public vote on the powerful planning tool could be coming.

    Smart Lodi, a small group of redevelopment opponents, turned in signatures last week from thousands of residents requesting such a vote.

    Those signatures must be verified by the San Joaquin County Registrar of Voters.

    If enough are valid, a vote would be scheduled as early as March.

    Smart Lodi has argued redevelopment projects will plunge Lodi into massive debt.

    City officials noted Wednesday night that Lodi will not borrow any money to pay for the Paint-Up/Fix-Up program.

    Contact reporter Chris Nichols at chrisn@lodinews.com.

    Reader Feedback

    Bry wrote on Oct 9, 2008 8:40 PM:

    " Today's America on all levels of government is moving toward socialism at the expense of the working middle class. This working middle class continues to pay for the selfish faults of the rich and the needs of the negligent and poor. There is no personal accountability. You can be certain within a few short years the middle class will be extinct. And today's poor will be super poor while the rich get richer. And big daddy government will control all with a big stick, more laws, rules, regulations and higher taxes. Say good by to America's borders, freedoms and Capitalism. "

    16925 wrote on Oct 3, 2008 7:20 AM:

    " Growth of government to a staggering degree. Let me keep more of my property tax so I can fix my own house instead of giving it to the poor. "

    edumacation wrote on Oct 2, 2008 9:45 PM:

    " To patton1: I have some economics textbooks for you. Yes its true extreme leverage when you are on the RIGHT side of a trade can be VERY lucrative. Very few trades turn out that way in ANY investment. You have to pay the toll. If you have NO RISK tolerance you have no business risking everything. Its not a prudent decision. If you CAN tolerate risk, I recommend no more than 2-3 % of portfolio assets for a highly leveraged position. This is true for stock speculation as well as house speculation. Can you afford to play in the game? You have to know when to hold or when to fold, AND YOU NEED SOME LUCK. If you can't ante up WITH YOUR OWN MONEY, you are taking too much risk. So read the newspapers about the milions losing their houses. The are all not subprime or ALTA-A, BUT ALMOST ALL IN TROUBLE HAVE MORTGAGES. Figure it out. "

    edumacation wrote on Oct 2, 2008 9:35 PM:

    " To patton1: My REALTOR friend who has sold HUNDREDS of houses, determined that ALL the houses she sees ARE OVERPRICED. She has the opportunity of picking through the crud and getting the best deals from motivated sellers. you show me a NEW 4,000+ sq/ft house on a raised foundation, slate roof, top shelf amenities, REAL wood cabinets and flooring and crown molding etc etc on 0.9 acre with river access and boat dock for $350,000 and I'll buy it. But, all she has seen is JUNK. Thats why she was forced to build custom. If she sees a good deal she'll give me a call. What can you show me at that price with those features in Lodi? She is in Contra Costa County in a pricier area. PRICES ARE STILL WAY TOO HIGH. Most listings are junk. Realtors tell me that!

    If a Realtor ADDS VALUE, you are welcome to pay their fees. If they DON'T add value, they are paper shufflers. For EVERY foreclosure today there are at least two real estate salesmen that "helped" a naiive buyer get buried in debt. Professional? Accountability? Responsibility? Please explain. "

    patton1 wrote on Oct 2, 2008 8:06 PM:

    " I am not sure what is wrong in using a realtor? I also dont know what is wrong in obtaining a mortgage?Has anybody heard of leverage. Done correctly, that is how you obtain wealth. "

    16925 wrote on Oct 2, 2008 7:40 PM:

    " Here is a good idea. Let us keep our own taxes. I would rather not give my taxes to the government so they can hand it out to the poor to fix their houses. "

    edumacation wrote on Oct 2, 2008 7:14 PM:

    " To Whoa Nellie: Lets say you see a once in a lifetime investment opportunity and only need a quick $150K cash. Where are you goinmg to get the money? HELOC---thats a deadmans answer. Sell your house to get some equity? OKAY, but you need the money tomorrow. How many people can market and sell an SFR and close in one day? So you see, a house is VERRY ILLIQUID, with a very sketchy market value. Want big bucks? Save 6% and sell it yourself. If you have NO mortgage you can do this. "

    edumacation wrote on Oct 2, 2008 7:10 PM:

    " Whjoa Nellie---I Never thought you had PO<MI. Thats areal suckers bet. people who need PMI have no business buying a house. I think you misunderstood something. PMI is another junk fee, where you get NOTHING for your money. PMI protects grantors not grantees. "

    edumacation wrote on Oct 2, 2008 7:07 PM:

    " To fawn: Yes it can be, as long as you aren't paying interest for the "privilege". If you want more houses, compute your equity functions and project into the future. Estimate the highest profit and sell. Start immediately saving your money, pay off all debts and when you are ready to sell, you will be ready to buy---ON YOUR TERMS --- with NO MORTGAGE. Anyone can do nit---you just have to stop drinking the koolaid and get serious. Cash talks, BS walks....and makes lots of RE people good incomes. "

    Whoa Nellie! wrote on Oct 2, 2008 5:39 PM:

    " Edmu, you are a classic.

    NO, I do not have PMI. You see I had made a ton of money off my previous house that I had a nice fat down payment on this place.

    Yes, I believe you Edmu. Real Estate is a depreciating asset...hahahahaha! Have you noticed no one agrees with you. "

    fawn lebowitz wrote on Oct 2, 2008 5:17 PM:

    " I have to say you guys are players...5 homes here..8 in Pleasanton...man, I wish I had some property, cash flow, tax write-offs for improvements, yada, yada, yada. I'm just a workin' chump with a mortgage. Got to say...money to fix up the east side homes is a good idea. Pride in ownership is a good thing. "

    edumacation wrote on Oct 2, 2008 3:51 PM:

    " To t jefferson: Yes all inclusive everything. people driving by "lookie loos" have been offering up to 1.2 M thinking that it was a developer. They said "NO" we built it to live in it. But its interestung to note that even though the Realtor assiociate has an inside track to all the deals, she felt that ALL of them were asking too much. She is a professional---and must know what she is doing. She has experience working for many of the national builders and knows ALL the games they play. If you want a house that meets yourneeds build it yourself. Why give someone else your hard earned cash? If you work and add vale---those workers get paid. Everyone else is middleman and freeloader. Ask yourself are they slamming nails or just BS ing. Pay the workers. "

    edumacation wrote on Oct 2, 2008 3:19 PM:

    " To dogs4you: I can tell you have been there done that. YOU have my sentiments exactly. I am glad you figured it out. The question is: Are you happy? It sounds like you are and you know what you are doing. Thats good. Many years ago I was lucky enough to ask a really wealthy person how they looked at life. FIRST PAY NO INTEREST! What? I asked a question about "life" not interest. They responded that with interest you are being robbed of life. If you remember
    "DO NOT PAY interest and bogus fees" and only buy what you need or can afford. These two simple rules will allow you to rapidly accumulate money WITH NO DIFFICULTY. "

    dogs4you wrote on Oct 2, 2008 3:02 PM:

    " according to edumacation, a house is a luxury, and according to this learned person a house is a depreciaing asset, even at 2% a year I would call it and apreciating asset. A boat is nothing but a hole in the water owners keep pouring money into and is considered depreciating asset. Well then adu, I am living in the lap of luxury 30 days at a time, since thats when the bank lets me live in their house and is happy with a payment. Just like my new truck, as long as I make that monthly payment, they let me park their truck in my garage. Isn`t Capitalism wonderful, along with a good paying job? "

    t jefferson wrote on Oct 2, 2008 2:58 PM:

    " does that include land and permits? "

    edumacation wrote on Oct 2, 2008 2:37 PM:

    " Thats right -- $75/sq ft! She tld me this was on the high side since she has over twenty years experience as a Builders sales agent. She knows the inside secrets" Hire an A&E who already designed the house you want (same county)---big discount, No General contractor. You will NEVER cheat yourself. Hire only the best subcontractors at the lowest prices. They are working for less today. Use only the best materials, like a slate roof. Now look at an old 1940's fixer on the east side. Whats is the asking price. Compare the houses. If the new house is ten times the old value, the old house should be one tenth= 35,000 MAX for an OLD house. See what I mean? Most of us can't afford to build our own, so we TRUST a stranger with our loan funds. It looks kind of rediculous to put yourself in a 30 year debt for a stranger and a smile, so you can say you "own" a house.. You only own the mortgage. Your house has a market value of what it can sell TODAY. "

    edumacation wrote on Oct 2, 2008 2:26 PM:

    " Today in the news it seems everyone is concerned about the "bail out" of the banking and Real estate sector. It all comes down to a simple: what is the REAL VALUE of those houses that were purchased with Other Peoples Money? I don't have the answer. But I do know 1) Houses are a depreciating asset. 2) The real "market" value of a house is what a buyer is willing to pay for it. Does a house have an intrinsic or REAL value? You can look at many theories. I like reality. I have a Realtor friend who recently completed building her own custom house. Its in an area of million + dollar houses. How much did it cost her? Lets see including the Architect-Engineer, her finished COST---BOTTOM Line is: Guess? 0.9 acre on a view lot, river access, nice area all underground utilities. 4,000+ sq feet living area, single story with raised foundation, landscaped, all the nice amenities. Get ready? There is a reason she did not buy an existing house for sale. $350,00 TOTAL PRICE! "

    edumacation wrote on Oct 2, 2008 2:00 PM:

    " To cheeto: Does this look familiar? It's just like money management 101 for card players, but it has fewer variables. Never play poker with those who you do not know. do you k now loan officers? NO! Do you know Real estate salesmen? NO! Each is in the GAME for THEMSELVES ONLY. If you can't make a payment---its YOUR FAULT, but they always get a profit. I don't play games with people who have the deck stacked against me they have valuable information that they will NEVER disclose. Who are they REALLY working for? Who pays whom? And who has the money? Simple questions will make them RUN. THEY ONLY WANT LITTLE FISHIES THAT BITE THEIR BAIT! Be careful---its YOUR money! So you can see I am NOT against real estate. I am not against buying today. BUT when you walk away with a contract,DID YOU GET THE BEST POSSIBLE DEAL FOR YOU? Today, every single house buyer who is losing their house, thought at the time, that THEY had the best deal on the table. SURPRISE! "

    edumacation wrote on Oct 2, 2008 1:50 PM:

    " To cheeto: Read my comments and do your own research. With a single family residence as a primary residence, there are FOUR TYPES OF EQUITY:

    1) Equity from down payment (if a mortgage)

    2) Equity from accumulated mortgage principal payments.

    3) Equity do to the increase in inflation (during an inflationary economy).

    4) Equity due to speculation:

    If you are a house "owner", its easy to sum up the values. If you are a house buyer, look at you intended down payment and loan figures. Look at the amortization chart.

    Plot EACH equity line SEPARATELY. Plot time on X axis and dollars -Linear- on vertical. I like to use four different colors. ANYONE CAN DO THIS! The figues are easy to gather. you have to be honest though or you will be the fool if you exaggerate. You will quickly see that some transactions have almost NO values for some variables and lots of values for others. Plot them anyway!! Now for any year in the future, can you afford to live in the house, sell the house or buy the house. "

    edumacation wrote on Oct 2, 2008 1:40 PM:

    " To cheeto: You are only minimally correct. There are many undefined variables in your example. But first have to admit that ANY TIME today, or tomorrow. or yesterday might be the very best time to buy a house BUT it must meet the following criteria. 1) Is it priced correctly? That never means phoney baloney Real estate or appraiser. Those are values FOR THEM ONLY! 2) Can you afford to pay cash? 3) What is your risk tolerance? In my case if all of my house market values went to ZERO, I still won't lose ANY MONEY! Read it feel it think it. DEBT is NOT wealth. Please repeat: DEBT IS NOT WEALTH. People should ONLY buy houses if they can afford it. A house is a luxury and not a necessity. Its like buying a plane or boat. They are also depreciating assets. They cost BIG BUCKS TO OWN AND TAKE CARE OF. Cheeto see next. "

    WY wrote on Oct 2, 2008 1:26 PM:

    " Jeez....I wish I could have 10K to fix up my place "

    cheeto wrote on Oct 2, 2008 1:17 PM:

    " Edumacation, here's a quick economics/vocabulary lesson for you ... depreciated = goes down in value, appreciated = goes up in value. Let me use those words in a sentence so that you can better understand the definitions: "Since Whoa Nellie's house went up in value, it has 'appreciated', as opposed to 'depreciated'." You don't have to thank me for the lesson. That's my random act of kindness for the day. "

    edumacation wrote on Oct 2, 2008 1:01 PM:

    " To Whoa Nellie, you are making my point for me! Answer these questions (to yourself). Your 1994 house you bought for $155k. 1) How much did you pay per square foot? 2) Did you pay cash? How much did you pay on your interest? (sum the monthly I of PITI). Now the big one. Sum all the monthly T of the PITI. Add the second I and not even adding upkeep and repairs you are already minus today. Did you forget to add the time value of money on investments/PROFITS YOU WOULD HAVE MADE if you did not pay interest on a house? You are living an illusion unless you buy LOW and SELL at the highest (if you have mortgage interest--I don't) "

    edumacation wrote on Oct 2, 2008 12:55 PM:

    " To commonsense1: Obviously you don't know what your talking about. I own five SFR and commercial property. BUT I PAY CASH. No mortgages and no Real estate fees and commissions. This is the only way to by. And yes, we both know that houses are DEPRECIATING assets. Do you computer your "basis" annually? If you don't you pay the capital gains? Never pay a mortgage or Realtor if you know what you are doing.

    IMHO only suckers fall for their sales pitches. "

    commonsense1 wrote on Oct 2, 2008 12:24 PM:

    " To suggest maintaining or improving your home is a bad investment, is ridiculous. Guess you could pay me that same money for rent and have noting to show for it. I'm not trying to chase my tenants away, (hope you're not one of them) but the benefits of owning and caring for your home are many; Long term appreciation, mortgage interest deduction, mortgage reduction builds equity, capital gains exclusion, pride of ownership, stability, are just a few of the benefits of home ownership. Can you tell us why this is a bad time to buy a house? "

    Whoa Nellie! wrote on Oct 2, 2008 12:09 PM:

    " Edmu, you must be the "least smart" person on this blog. A house is a depreciating asset? Really?

    Lets see, I bought my current home in 1994 for $155K and it needed work. Even with the slide the last year plus it's worth over $400K, less the $100K I've invested in to my asset, so I'm up at least $150K.

    How do people pay for the costs you mention? Well, 1) save 2) loan 3) combo of both. Especially older homes, you got to know you're into constant bills for maintenance. "

    commonsense1 wrote on Oct 2, 2008 11:44 AM:

    " edumacation.....Obviously, you are not now, nor have you ever been an owner of real estate. My leveraged, income properties here and in Pleasanton (9) would hardly be considered depreciating assests. With a very small cash investment, I have enjoyed nearly 20 years of positive cash flow and appreciation. I'm sure we could all use a little of your investment advice. "

    edumacation wrote on Oct 2, 2008 10:48 AM:

    " My point is that lot of things need fixing and repairing with any house. A HOUSE IS A DEPRECIATING ASSET. Any other definition is a lie brought to you by people who ONLY MAKE MONEY by trying to speak to greed and ego.

    A typical family who buys a house with todays high prices face lots of problems. Where do they get the money to replace the roof, plumbing, termite repair, when they eralize that their "home" is losing market value every month . If there were no "cheer leader" caused bubble, people could afford the needed recurring rapairs on their own without the RDA. They have alwats done it before. Whats so different about today. Oh yes the phoney baloney housing-Real estate bubble which only benefited a relatively few bubble cheerleaders. " "You must buy today, they ain't building land any more". "

    Monique wrote on Oct 2, 2008 10:12 AM:

    " I'm actually really grateful about this whole push. My fiance and I own a home on the east side. We scrape by with what we have. It's not about the painting for us, but putting up new windows would definately be a great thing for us right now. Since we moved in we haven't had the funds to repair the window. It's not a bad idea, taking the money that we spend in taxes to help us improve on the place. "

    oldguy wrote on Oct 2, 2008 10:01 AM:

    " to edumacation: you are doing a good job of building a straw man to attack. If you listened carefully you would know there is no debt associated with this plan. Redevelopment law requires that 20% of the funds collected go to housing issues. The tax increment has just started so there are no funds in the pot now; that is why the project will start next year. I am sure you take care of your home and do not look at the maintenance of that home as lipstick on a pig. I think that anology has been overplayed a bit, don't you. The beneficiaries of this are people who have very low incomes and can not afford cosmetic upkeep. "

    SportsGuru wrote on Oct 2, 2008 9:54 AM:

    " .
    Painting contractors that will charge top dollar, pay sub-standard wages under the table to illegal immigrant workers, and maximize the profit for themselves???? "

    SportsGuru wrote on Oct 2, 2008 9:54 AM:

    " .
    It sounds like a potential BOOM for painting contractors! "

    edumacation wrote on Oct 2, 2008 9:40 AM:

    " To Observer: Of course people should take care of their HOUSES! But it should be realized that the tricksters that try to promote the idea that houses are appreciating assets and that house prices ONLY GO UP are still passing out the koolaid. A house cxan be where a family lives. That's good, but when did the label change to a "home" or "exclusive estate" with preaching that a $50-100,000 dollar house is worth $400,000? There is still too much koolaid being ladled out in buckets. Jim Jones would be proud. "

    Observer wrote on Oct 2, 2008 8:29 AM:

    " Edu, are you suggesting that we don't want to take care of our homes? Hell, I've had to replace my driveway, have the house painted, fence replaced, etc., etc. I've been impressed with some of the young couples that have moved into homes on the East side and fixed them up. It's good for them and it's good for the neighborhood. "

    Observer wrote on Oct 2, 2008 8:25 AM:

    " I am curious as to how much money has been generated in the Redevelopment fund? How much has been set aside for this project? I am happy to see that the City is not borrowing money therefore I can only assume the money has been generated and available. How much? "

    edumacation wrote on Oct 2, 2008 8:20 AM:

    " Let me undrstand this. You have an old dump built in 1918 that you have been trying to sell for $320,000 with no bites. You want to keep the price high (thats why it didn't sell), so the city pays up to $10,000 for paint and repair of the exterior. It sounds exactly like "putting lipstick on a pig". You can never "paint" someone a new house. An old house with new paint is still an old house. What will the same house be like in five years? An old house in need of yet another paint job.

    When will we understand. A house is nothing more that wood, nails, stucco, and termites. Its is a depreciating asset. The only way to slow down the depreciation is to throw money at it. Realtors, builders, and taxing authorities have a fetish with houses because its the only way they make a profit. Don't keep drinking the kool aid. Debt on debt is more debt and NOT wealth. "

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