The Ketchum City Council constantly insists its No. 1 priority is affordable housing. They made an agreement with a developer (this time with P&Z Commissioner Sam Williams) for him to pay $895,000 in in-lieu housing fees rather than provide actual housing in his building. The balance of $795,000 was due in December. Mr. Williams did not meet this deadline and then waited until the last minute to come forward with a proposal.
The agenda item on the March 1 calendar regarding this transaction was so ambiguous that it caught everyone by surprise. It turned out to be an agreement that would partner the city with ARCH, which would purchase Unit No. 5 in Mr. Williams' building for $540,000 (funds provided by an anonymous donor), resell it and split the net profits (unknown) with the city. The city may collect an in-lieu payment of an unknown amount at a future, unknown date with unknown terms. It was disclosed that since the original payment was not properly secured, Mr. Williams has no obligation to pay the in-lieu fee or provide a housing unit. So instead of paying the city $795,000 that he owes, Mr. Williams receives $540,000 and may or may not owe money in the future. And no affordable housing is provided.
Many questions surround this agreement. Who is involved? Who came up with the proposal? What financial involvement does Councilman Larry Helzel have that prompted him to recuse himself? Since the council appeared to have no knowledge of the relevant aspects of the agreement, and the mayor remained mute (an interesting position since he placed this on the agenda), the council went into executive session to discuss it, and then voted to approve. How does this new agreement secure any future housing or fees for the city?
Transparency? I don't think so.
Phyllis Shafran
Ketchum
