Lakewood's Fiscal Turning Point - What Would You Cut?

[David Anderson]

I don't think Lakewood has a glut of rentals. It has a glut of crappy rentals. Nice doubles and triples rent as quickly as ever. But, again, it costs Lakewood money to enforce codes.

Imagine the impact on Lakewood's income tax revenue if rental units were rentable (not Taj Mahals but decent, working homes) and filled with tenants. (The trick is finding a way to "incentivize" owners/landlords to bring faulty family and rental houses up to code short of giving jail time.)

I can't help but feel that an effective enforcement of codes would benefit Lakewood all the way around - budget revenue (income taxes from new tenants), attractiveness, affordability of services, marketability to all business and industry.

I look forward to reading additional thoughts.

[john crino]

I don't think Lakewood has a glut of rentals. It has a glut of crappy rentals. Nice doubles and triples rent as quickly as ever. But, again, it costs Lakewood money to enforce codes.

Imagine the impact on Lakewood's income tax revenue if rental units were rentable (not Taj Mahals but decent, working homes) and filled with tenants. (The trick is finding a way to "incentivize" owners/landlords to bring faulty family and rental houses up to code short of giving jail time.)

I can't help but feel that an effective enforcement of codes would benefit Lakewood all the way around - budget revenue (income taxes from new tenants), attractiveness, affordability of services, marketability to all business and industry.

I look forward to reading additional thoughts.

In a city that has lost 20k+ people in 35 years,in a county that has the most rapidly declining population of any county in the US,in a region that has lost thousands of manufacturing jobs over the last decade,all while still dealing with the loss of the steel industry and it's periphery,in a municipal area that has the highest vacancy rate in the country per capita...I think Lakewood has a glut of rentals.
I'm not blaming renters. I am talking about Lakewood and Cleveland adapting to their changing worlds.

[Bill Call]

This always breaks me up. Cutting is so easy, just numbers on paper. So much easier to cut then create.

Next.
.

If you added 1,000 jobs per year each paying $50,000 the City would raise $750,000 in new tax revenue. That is not enough to pay for even one raise for City employees. Does any development plan you have seen promise to add 1,000 jobs a year for the next 10 years?

If you increased the City income tax rate by 50% you would eliminate the City's deficit for one year. The following year you would need another income tax increase to finance another round of raises.

In a couple of years property tax revenue will begin to decline. Then what?

The City cannot operate with a deficit. So, what would you cut?

[David Anderson]

John Crino and All -

The following information can be harvested from http://factfinder.census.gov/home/saff/ ... l?_lang=en

Lakewood’s Housing Profile:

Total homes – 28,416
Renter Occupied – 14,630
Owner Occupied – 12,063 (Single Family – 8,781; Owner Occupied Multiples – 3,282)
Vacant 1,723 or 6.1% (U.S. average is 9.0%)

(NOTE: It's difficult to determine whether this vacancy rate is per unit for multiple family homes or by building. I'm assuming the later.)

Lakewood and Cuyahoga County Population:

Lakewood
1990 59,718
2000 56,646
2006 (est.)53,244

Cuy. Co.
1990 1,412,140
2000 1,393,978
2006(est.)1,314,241

John, when you write that Lakewood and Cleveland should adapt to a changing world what specific ideas would you like to advance? Also, not that I doubt you, but where did you get the statistic that we Lakewood/region (?) have the highest vacency rate in the country per capita?

Time to Ramble on a Bit:

I do not want folks to think that our region's leaders are just sitting back paralyzed by fear of doom and gloom. There are numerous entities in Cuyahoga County/region working to change the economic development paradigm. There are many success stories from within the county where business sector incubators have made substantial gains in bringing new world jobs and industry here - tech, bio sciences, polymers, advanced materials, and power and propulsion. John, slowly but surely, the region is redefining itself.

All of this taken into consideration, I feel Cuyahoga County still has the critical mass (1.3 million) and economic development leadership in place to reclaim its prosperous heritage. Lakewood and all cities, suburbs play a role and have much at stake.

Name another asset Lakewood owns that is more valuable/important than its housing stock of 28,416 (70% are multi family). Lakewood is a multi-family rental community. Unfortunately, I feel that this fact has caused some of our leaders have an inferiority complex about Lakewood. Why can't Lakewood work to develop and market the region's #1 Best housing stock to owners and renters? People should want to come to Lakewood.

Eliminating housing stock will not get us anywhere.

I look forward to folks ripping apart my expressed opinions. Let me have it.

Later

[Charyn Compeau]

David:

Nice post.

Very nice.

Charyn

[john crino]

olymers, advanced materials, and power and propulsion. John, slowly but surely, the region is redefining itself


Eliminating housing stock will not get us anywhere.

Later

The info I posted came (mainly) from a commercial RE agent in Cleveland that I use to find properties.
I agree the region is redefining itself.Why? Because jobs have left and people have left. Part of the redefining should be replacing what is no longer needed, like thousands of apartments built to house downtown office workers during a time when buying a home or apartment was the exception not the norm like it is now.
For the record, I like Lakewood and Cleveland as a whole. I own a house in Lakewood and a business and I hope more than anything it turns around for the better. I'm not dissing lakewood for the sake of being cynical. I base my opinion on info I have read and my personal take on what I see everyday.
I also am not talking about straight elimination of housing stock I am talking about new ideas to make Lakewood more desirable and so it can compete with other places for jobs and people.
I am 38 and many of my friends have bought houses within the last 5 years so they can settle down and raise a family. Of course I try and convince them why they should chose Lakewood,like i have, but the reason none have is their perception of Lakewood as full of sex offenders and problem rentals that might end up next door to them.
what can I tell them? they look at the offender maps online and at all the for rent signs in lakewwod and it makes it less desirable
to them.
The problem is not the people pointing out the negative issues in Lakewood and Cleveland and trying to get some changes, but worse is people that pretend the problems do not exist or that "Lakewood has always been mostly rentals,blah,blah,blah".

[David Anderson]

Thanks for citing a commercial real estate agent as the source of Lakewood having the most vacencies per capita in the country.

I appreciate your thoughts. I am also concerned about the quality of housing across the board here in Lakewood. However, I am not as concerned about the quantity as you are but can see your point.

(Just for the record, folks who rent from me work in Cleveland, Crocker Park and Brookpark.)

The question is what policies do you propose be enacted? I am not debating the merits of your post. I agree with most of what you write. I'm suggesting that we work to upgrade Lakewood's housing stock. You are suggesting that we ...

I appreciate the exchange and hope others join us.

Later.

[Bill Call]

Lakewood is a multi-family rental community. Unfortunately, I feel that this fact has caused some of our leaders have an inferiority complex about Lakewood. Why can't Lakewood work to develop and market the region's #1 Best housing stock to owners and renters? People should want to come to Lakewood.

The problem is not the people pointing out the negative issues in Lakewood and Cleveland and trying to get some changes, but worse is people that pretend the problems do not exist or that "Lakewood has always been mostly rentals,blah,blah,blah".

I think you have both recognized that a healthy housing market is key to Lakewood's economic health. The question is: Can the City government have a meaningful affect on that market? I think the answer is yes.

How? By recognizing that both of you are correct. David is correct in seeing that much of our current housing was built to last and if properly maintained will always have some appeal. John is correct in seeing that some of Lakewood's housing is obsolete and needs to be replaced.

The reality is that nothing will done about Lakewood's housing until we first deal with the current fiscal emergency. Since the current Mayor and current council president have refused to face the City's fiscal crisis both of your housing dreams will remain dreams.

[Jim O'Bryan]

The reality is that nothing will done about Lakewood's housing until we first deal with the current fiscal emergency. Since the current Mayor and current council president have refused to face the City's fiscal crisis both of your housing dreams will remain dreams.

Bill

I think all of council voted to fund mainstreet, Hoggsback study, Vista Bridge study, and nearly 1/2 million in fluff.

Right now from what i understand they are still planning the street-scape on Detroit though the state has all but told them "no changes."

It was council, led by Mr. Demro I believe that gave SBC carte blanche, when they could have gotten as much as $1 mill a year off of them had they merely asked them to follow the same rules as COX Communications.

Now COX will sue and we will loose the franchise fee, the taxes, and all of the FREE services that could take as much as $1 million to replace.

There is more than enough fault to go around my friend.


.

[Bill Call]

.............I think all of council voted to fund mainstreet, Hoggsback study, Vista Bridge study, and nearly 1/2 million in fluff.

Right now from what i understand they are still planning the street-scape on Detroit though the state has all but told them "no changes."

.....There is more than enough fault to go around my friend.

I agree that the City wastes an incredible amount of money.

I agree that all members of the council have some responsibility for that waste and mismanagement.

To paraphrase Everett Dirksen, "A million here and a million there and pretty soon you're talking about real money". The question here is what would you cut to balance the budget?

As to the responsibility for the current fiscal crisis.....A fish rots from the head first.

[Justine Cooper]

How many on council are there and how much time do they put in? Does anyone think there are enough dedicated and hardworking people to do council as volunteer? I may get pelted for that but you asked where we would cut. I asked in the other thread for the accomplishments of council and not one person put forth anything. I am just wondering how many hours a week it would take and if could go volunteer?

[Bryan Schwegler]

I think council's current salary is miniscule so it wouldn't help the budget issue at all to remove it.

And in all honesty, given the amount of time most put it compared to their salary, it almost is volunteer right now

[Justine Cooper]

Bryan,
You are right and it was a long shot. There are some hard working people there, but the ones that ignore calls and turn their backs on tax-paying citizens that show up at meetings don't deserve a check, in my opinion. I bet if it did ever become volunteer there are enough people in Lakewood that are trying to make a difference that would do it. There is no way these taxes should be raised again. I don't see it with the gas bill we got last month being affordable to pay higher taxes.

I do agree with John that SOME of the empty ugly doubles could be used for something better! Yes we do have too many! This is not about being against renting, as we did it and most do it, but too many empty doubles and we are in need of the space! Even putting in a few community parking lots could help the city when they do art crawls, hops, historic events, etc.

[DougHuntingdon]

We also have some ugly singles. We have some ugly gift shops. We have some ugly restaurants. We have some DISGUSTING-looking bars (inside and out).

Doug

Renting is not a crime

[Justine Cooper]

Doug,
This is not about renting is bad! But there are too many empty rentals, and yes empty ugly storefronts and ugly bars! The truth about renting in this area, is you don't have to worry about losing money on a declining housing market. There is no reason to buy unless you are 100% sure you are going to stay a minimum of five years in one place anyway, or you lose money with all the closing costs and everything else. And even living 7 years we made no money on the sale of our house, so renting is NOT bad at all and keeps the economy going too! I still think we have too many empty ones that could go to better use.