Mayor favors loan program
Aid to workers targets central-city homes.
Published Sunday, February 3, 2002

Mayor Darwin Hindman wants to fight the perception that central Columbia is overrun with crime. He wants to take head-on the notion that it’s not a good place to buy a home. And he’s hoping to do so, in part, by encouraging city employees to settle down there.

Kate Gorman graphic
The Columbia City Council is expected to vote tomorrow on a resolution that would set up a home-buying assistance program for the city’s 1,100 employees. Working with lender Fannie Mae, the program would provide eligible workers a $5,000 loan toward buying a home in a designated portion of the city’s core. Recipients could have the loan "forgiven" if they stay in their homes and with the city for five years.

"I’m very much in favor of it," Hindman said. "To have a successful city, you’ve got to have a strong core. I think we must strive in every way to make it so there are benefits to living in the central core that you don’t get living anywhere else."

If approved, the city would initially set aside $30,000 in discretionary money. Employees who have worked for the city at least two years could apply for the loans on a first-come, first-served basis. The eligible area includes parts of every city ward.

First Ward Councilwoman Almeta Crayton, who lives in the eligible area, supports the proposal.

"I think it would be a good way to bring back professional people to the neighborhood," Clayton said. "We should bring people back as homeowners and pillars of the community."

Fannie Mae representatives have indicated that if the council approves the resolution, they would be willing to work with other employers in the city on similar programs.

City Planning Director Roy Dudark said he’s unaware of any other employers in Columbia that offer a homeownership loan program. He said similar programs for city employees in St. Louis and Kansas City have succeeded. "It’s not only a good thing for the neighborhood but also a tool to recruit and retain quality employees," he said.

Hindman doesn’t think the plan would lead to gentrification in the city’s center. "I assume if a place is for sale, that we’re not going to be displacing people," he said, noting that only six people a year could receive a $5,000 loan under the proposed program.

In other business, the council is scheduled to consider:

● Authorizing City Manager Ray Beck to sign an agreement with Rafael Architects of Kansas City to do preliminary work at the Nowell’s building on Worley Street, which will house the Columbia-Boone County Health Department. The city and county would split the cost, which is not to exceed $218,000.

● A report on farmers market issues. The report includes a draft letter from the city of Columbia to the Missouri Department of Economic Development indicating that the city wants to enter a lease agreement with Sustainable Farms & Communities. While the city council and SFC haven’t hashed out all the details of the proposed lease, the council agreed to write the letter so that the state would review SFC’s application for tax credits. The council must approve the letter.

SFC has asked that the city allow it to lease 5 acres at the old fairground for $10 a year for 99 years to accommodate a $2.7 million Columbia Farmers Market Community Center. To be eligible for tax credits, it must have a lease in hand by April 1.

The report also includes a market request to use the Nowell’s lot on Worley this season because construction of the recreation center limits space at the fairground site.