Once Bitten, Forever Shy

The City is trying to sell two buildings that are considered surplus property: 10-12 Warren Street and 429 Warren Street. Both buildings are to be auctioned, with no minimum bid, the sale to be subject to a $100,000 penalty if the building is resold or not developed within three years.

Some have questioned the need for such a penalty, but a story from Hudson history will explain why it is considered necessary and may make one wonder if $100,000 is enough. 

Prior to about 2001, selling City-owned property required a referendum. In the first sale of property after the law was changed, which took place in 2002, a plan was crafted that sought to ensure that the properties sold would be redeveloped to their highest and best use. The properties involved had all been seized by the City for nonpayment of property taxes. Instead of a straightforward auction, potential buyers were asked to submit proposals that not only made a monetary bid but also explained how the property would be restored and/or redeveloped. The proposals were reviewed by a committee of aldermen, and the winning proposal was decided based not solely on the amount of bid but also on the quality and appropriateness of the proposal for future use. All in all, it seemed an enlightened scheme, but, as time demonstrated, it left out an important element. There was no penalty for not doing what you said you were going to do.

One of the properties, a vacant lot, was flipped for a tidy profit within a year of its acquisition. Two other properties, both houses, were sold for a profit within a couple of years, before any restoration happened. The restoration of those properties was carried out by the new owners. Another property was left to molder for nine years before it was sold to Galvan, which let it molder for another ten years before it was finally restored and sold. Another property was neglected for ten years until it was deemed a public safety hazard, and the City stepped in and demolished it at the end of 2011. To Gossips' recollection, not one of the winning plans was carried out as proposed. 

Whether or not anyone on the current Council actually remembers what happened more than twenty years ago, it is this experience that inspires and justifies the City's caution when selling property to which it holds title.

COPYRIGHT 2023 CAROLE OSTERINK