IS IT TRUE MAY 30, 2017

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IS IT TRUE that the Lincoln Estates complex had 112 residential living units when the new owners picked it up from a bank that had repossessed it?…the reported sale price of around $2.6 million works out to $23,000 per unit which is a heck of a lot cheaper than the $240,000 per unit that the government paid to turn the old safe house into apartments?…there must be a reason that the Lincoln Estates complex was recorded as a “zero dollar” transfer back in 1999?… If government protocol was used in the construction the taxpayers may well have paid today’s equivalent of over $200,000 per unit or more than $20 million to build the place?…there would have plenty of pork to feed plenty of cronies well on such a job?…the reality of what Lincoln Estates is worth in the real world is the $23,000 per unit that the new owners just paid?…at a comparable cap rate of 8 percent and a scheduled rent of $900 per month per apartment, the new value of Lincoln Estates will likely exceed $10 Million, proving that private money is smart money and government money is just plain dumb?

IS IT TRUE that the saga of the Lincoln Estates affordable housing project is unfolding daily and the rats are scattering from the ship as reality is being exposed?…one reality that has come forward is that the complex was built using tax credits that were available back in 1999 when it was built?…we will assume that the construction company made a hefty return at the expense of the taxpayers and that the workers were paid according to the inflated government scale commonly known as “prevailing wages”?…it is likely that both the workers and the company were winners in this well subsidized project and the taxpayers lost?

IS IT TRUE that the daily management of the Lincoln Estates project was carried out by the Evansville Housing Authority  after opening with smiling politicians mugging for the camera?…there were many tenants admitted to the apartments and the lion’s share of them were subsidized by the taxpayers?…even with guaranteed rent payments courtesy of the taxpayers, the complex always came up short financially?…eventually the complex failed and was repossessed by the bank that held the note?…we find it extremely interesting that the Evansville Housing Authority wanted to buy it from the bank after managing it into the ground years before but the bank was not interested in their low ball offer?

IS IT TRUE that today a new owner that is very hard to pin down has the deed may be converting this property into market rate properties?…after 18 years, many taxpayer dollars down the drain, countless tenant inflicted damages, and egg on many faces, Lincoln Estates is now in private a developers hands?…that so far the only winners are the people who got subsidized rent for all of these years and the original construction group?

IS IT TRUE that the question arises as to what the prospects for success for the new owners will be?…Lincoln Estates sits on the edge of downtown Evansville which is well poised to absorb this number of residential units due to the handful of medical students who will soon be studying in downtown Evansville?…one of the demographic statistics that has limited the ability of downtown Evansville to attract basic things like a grocery store, a pharmacy, or even a gas station has been the fact that there are not enough people with disposable income living there?  …if the new owners adopt a new business plan to keep subsidized tenants out and charge market rates like the McCurdy is to the new tenants, they are very likely to have a profitable future?

IS IT TRUE that many people are blaming the new owners for the misfortune of relocation that is being suffered by the former tenants?…in reality, the blame for the failure of Lincoln Estates lies squarely on the backs of the Evansville Housing Authority and the other un-named stakeholder who failed to manage a Section 8 housing project in at least a break even way?

IS IT TRUE we wonder why Mayor Winnecke decided to sell the once not-for-profit Evansville Housing Authority to a group of for profit business people?  …we wonder how money did the business investors pay the city to acquire the assets of the not-for-profit Evansville Housing Authority?  …we wonder what city account was this money deposited in?

IS IT TRUE we wonder if you would like to know who were the owners of Lincoln Estates before Bayview Loaning Service LLC took over the ownership of this property in 2016?

IS IT TRUE the real question is now, “which public housing complex located in Evansville will be the next to fail?”

Todays “Readers Poll” questions is: Would you like to know who were the owners of Lincoln Estates before Bayview Loaning Service LLC took over the ownership of this property in 2016?

18 COMMENTS

  1. Have they ever said the total dollar amount owed to the complex by the residents who were not paying their rent?

  2. I am not sure that Bayview ever owned Lincoln Estates. It is more likely they were just being paid to service the loan for loan provider, whoever that was. It could be a local bank or a group of local investors for all we know.

  3. November 1, 2016

    MORTGAGE LENDING AND FRAUD PREVENTION TASK FORCE LEGISLATIVE REPORT 15

    Defendant Name: George Zarris, Barbara Zarris, and Alexander Olympus Zarris

    Prosecuting Agency: Scott County Prosecutor

    Indictment Date: July 2009

    Case Status: Closed January 14, 2016

    Sentence: No Time Served

    George Zarris, Barbara Zarris, and Alexander Olympus Zarris – Barbara Zarris, George Zarris and Alexander Olympus Zarris were charged in Scott County, Indiana with five (5) felony counts of acting as unlicensed loan brokers, five (5) counts of loan broker fraud, and four (4) counts of fraud on a financial institution. Due to statute of limitations issues and the fact that most victims were deceased, the parties negotiated a settlement in this case. The Defendants agreed to pay $9,500.00 to the only surviving victims and, in exchange, the State dismissed all charges against the Defendants.

    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    George Zarris apparently started the not for profit Christian Radio International in 2013.

    http://990s.foundationcenter.org/990_pdf_archive/454/454839130/454839130_201412_990.pdf

    I do not see the cash flow at CRI that would warrant some lending institution making them a loan of $2.6 million for a property like Lincoln Estates. I do not see how this property fits in with Mr. Zarris’ radio ministry.

  4. I thought the city has an ordinance where all rental property owners has to register with the city or be fined. So wouldn’t they know who owns the property because according to the ordinance the city must have a contact number and address. Or is this another one of the feel good ordinances with no oversight or enforcement?

  5. There seem to be some common themes here:
    1. Admiration that private investment (the marketplace) is taking the lead here on the LE property.
    2. Envy that exhibits itself as “Well, how much money are they gonna make here?”…like somehow they have no right to make a profit on their risk. Which is it??? — a) You’re happy the private market is succeeding here? OR b) Wait, the capitalists are making high whore profits again!” Which is it?
    3. Failure to acknowledge that downtown Evansville re-development efforts are clearly creating momentum in the downtown marketplace – the purchase and redevelopment of LE being the evidence…..in spite of the many here…..who insisted it would never work. Comeuppance is due here…..at least some!…don’t you think Editor and cynics who post here?

    • The medical school has created a demand for residential apartments that are nice in the downtown. The Centre did not. The Ford Center did not. A hotel won’t. Even the boat was limited in residential stimulation. Perhaps the medical school should have come first. It is substance. The rest are bets on fun and games.

  6. When you read the article and comments you know there’s more to the story. Can anyone answer who are the board members of EHA and just what is thier role in the city today. A Tim Martin has been on TV for them. Is he the president of EHA cause he is pretty evasive in his explanation on TV. Does the EHA have to follow open door and freedom of information requests as government does or at least used to? They have to know more about this than we are hearing . For example, who owned the property when it went bankrupt and who was the person of record?

  7. As it seems, the Vanderburgh County Assessor website indicates that Lincoln Estates property is owned by Lincoln Estates Redevelopment Partne Bayview Loan Servicing, LLC ..the Indiana Secy of State website confirms that no LLC exist using the name noted on the Vanderburgh County Assessor website. Is this a phantom entity?

    • The Indiana SOS has an “active” listing for Lincoln Estates Redevelopment Partners LLP, and an “active” listing for Bayview Loan Services llc.

  8. 1) What is the relationship of the EHA to the City of Evansville ?;

    2) Is this the start of the gentrification of downtown which Connie Robinson of City Council predicted with the Medical School downtown ?; and

    3) Is the Lincoln Estates and the “relocation” of citizens on Walnut Street to make way for the D-Patrick move from Downtown just the beginning of a City which throws poor people into the street to get the real estate ?

    Reference Los Angeles in the 1950’s, Chavez Ravine/ Dodger Stadium.

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