'WIN-WIN': Clinton will sell apartments
Clinton City Council agreed Monday to sell Tallwood Homes Apartments to a private company.
The deal must be approved by the US Department of Agriculture, which loaned the city the money to build the apartments in the 1970s. The city still owes $191,000 on the apartments.
Tallwood is owned by the Clinton Senior Citizen Authority composed of the mayor and all six council members. The 40-unit complex is managed by Boyd Management Co. of Columbia.
City Manager Frank Stovall told council, meeting in a special-called meeting Monday, Boyd has received an offer to purchase Tallwood. Although the potential buyer was not named, in similar situations, Boyd has set up a separate, private company to purchase other apartment complexes.
Tallwood provides housing for elderly and disabled citizens. The rent is income based. If the deal goes through, Stovall said, Tallwood will continue to serve the elderly and disabled.
The buyer will assume the $191,000 debt and pay the city between $140,000 and $160,000 in cash, the city manager said.
He said the new owners plan to use tax credits to rehabilitate the units.
The advantages to the sell are improved housing for current residents and potential reduction in utility costs through energy efficient improvements, Stovall said.
The property will also go back on the tax rolls, he said.
“Residents will be temporarily moved out of each unit so that the rehabilitation and remodeling of the unit can take place,” he said in a written report to council. “Once the units are remodeled, the resident can return to a like-new unit.”
If Tallwood is purchased by the private buyer, the Clinton Senior Citizens Housing Authority will essentially be out of business.
In a letter to Stovall, Boyd Management Vice President Joseph P. Wilczewski said Tallwood is “in need of substantial rehabilitation in order to update its physical condition and preserve the on-going viability of the project.”
Limited cash flow prevents Boyd from making the repairs needed, he said.
If the deal is approved by the USDA, the buyer will have to obtain financing and tax credits to close on the property.
The only discussion before the unanimous vote was from Mayor Bob McLean. “I think this is a good thing,” the mayor said. “It puts the property back on the tax rolls, too. It’s a win-win for everybody.”