August 25, 2010

City home rehab contracts create hundreds of jobs

"Every day, we hear people asking us, 'Have you got any jobs?' Well, we're here today to tell you, YES!"

With that as preamble, Mayor John Dickert today announced the granting of 165 contracts for the rehabilitation of 18 homes, and the construction of 5 new ones, using $1.25 million from the federal Neighborhood Stabilization Program.

The plan is to rehab the homes, sell them, and then "recycle the money" by doing it all again with a new set of homes.

Mayor Dickert with, from left, Jim Spangenberg, Greg Helding, 
Jean Wolfgang, Joe Heck, Ray DeHahn and Morris Reece

Dickert said 82% of the qualifying contractors had Racine addresses, and 10-12% are minority owned. It's impossible to say exactly how many jobs will be created, but Dickert said approximately 10 contracts were awarded per house (plumbing, electrical, siding, roof, etc.) and each would require two to three workers. That could total as many as 30 jobs per house, and about 750 in all -- although some contractors were the successful low-bidders on more than one project. Still, at an average rehab cost of $60,000 per house, that works out to just $2,000 per job.

Dickert said the program meets multiple needs, since Racine suffered from 441 foreclosures last year (compared to about 30 a few years ago), so the program will not only put people to work, it will put people back into homes. He was joined at the announcement by Aldermen Greg Helding, Jim Spangenberg and Ray DeHahn, each of whom echoed Dickert's excitement. "It's a thrill to put people from Racine back to work," said Spangenberg.  Other city officials who took part in the news conference were Joe Heck, assistant director of development, Jean Wolfgang, associate planner, and Morris Reece, affirmative action director.

The homes to be rehabbed -- and those demolished to make way for new ones -- were bought in foreclosure for about $650,000 - $700,000 -- $10,000 to $65,000 per home, from an initial grant of $1.9 million. Coupled with the approximately $60,000 per home in rehabilitation funds from the second, $1.2 million grant, that means the city will have to sell them for an average of $90,000 or so to break even. The mayor's recently released 10-year-plan said that was the median price of a home in the city.

Dickert said the two real estate firms granted the listings -- First Weber and Shorewest -- have agreed to intensive marketing, as well as to a higher commission for the selling agent (2.4% compared to the usual 2.1% of the standard 6% commission; the rest is divided between the listing and selling agencies).  The city hopes this added incentive will reduce the time the houses are on the market.

But, of course, there are lots of houses on the market selling for less than their owners have in them. Asked about that, Dickert, a former Realtor, said, "The market is not that bad... but, candidly, we'll find out."

The city has until February 2013 to continue turning over and recycling the NSP money. At that point, the program ends and -- theoretically -- any remaining money will have to be returned to the federal government.


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34 comments:

  1. "But, of course, there are lots of houses on the market selling for less than their owners have in them. Asked about that, Dickert, a former Realtor, said, "The market is not that bad... but, candidly, we'll find out." "

    Can the Mayor Read? Can the Mayor do Math?

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  2. Awesome ! Good work Mayor and City Council ! This is a big step forward.

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  3. is he a mayor or a realtor?

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  4. we are paying the contractor for the work. Who knows who will actually be doing the work and how much they will get paid.

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  5. I want to know who the contractors are?
    What they are doing and what the contracted prices are duh!

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  6. I do as well. 4:54 you need to see the George Meyer Show on the Spanish Center. That little deal has me worried about what is REALLY going on here.

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  7. "The market is not that bad"
    Plenty of homes for sale already, not many buyers. Someone should tell John to put the Jimi Hendrix records away.

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  8. July was the worse moth on record for home sales! Racine has high unemployment,High Crime and poor schools. Who in God's name is moving in to buy these home when and if they get done?

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  9. Nancy Jamison8/25/2010 7:16 PM

    I seldom read the comments or respond to them, but why all the negative comments? The Mayor is trying to do something positive for the City. What are you doing expect for complaining and whining about everything the City tries to do? All some of you do is complain. Be a positive force for the community instead of bringing it down.

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  10. http://www.zillow.com/local-info/WI-Racine-home-value/r_54043/

    Look at the AVE selling price for a home will they even get that in the hell areas they are in? Would YOU buy a home to live in here?
    That's right the Mayor plans to cover up the crime going on in the City

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  11. Nancy Jamison we are exposing the lie that is John Dickert's Racine. If you think that anyone with kids are going to move to a crime infested city with no jobs good luck with that

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  12. Nancy, I'm waiting for the city to do something positve. Investing in housing stock, in the worst housing market in history, in the worst neighborhood in the city, just makes NO SENSE! COMPLETE IDIOT!

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  13. No Jobs, No Home Buyers..........I'm just saying

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  14. Way to go Mayor Dickert and aldermen! The nay sayers need to do something constructive - and pitch in and help. For many of the negative nay sayers, they are not able to give credit where credit is due. Get behind the Mayor and elected officials and work on the problems that face us all. John Dickert is a very positive force and involved all over the city of Racine. Thank you John and elected officials.

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  15. Greg Helding, I thought you were a republican? You are nothing more than a RHINO and that goes for your little freind Aron! Dweebs see you on election day, loser!!

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  16. Dosent Spangenberg look like he has to go "potty"?

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  17. "John Dickert is a very positive force and involved all over the city of Racine."

    Sure if you mean giving crones jobs. Just like American Tire and Point Blue this will blow up in His Face and Racine will have to pick up the tab.

    "work on the problems that face us all."
    I think we will by voting the bums out.

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  18. I like Greg. But I agree, he's a RINO.

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  19. News that Dickert does not want you to know:

    http://www.jsonline.com/newswatch/101490684.html

    The Hemorrhaging of jobs in the State The unemployed will not buy homes

    http://www.jsonline.com/news/milwaukee/101518284.html

    A Milwaukee Dem said NO to KRM No Toy Train for John no crony buy the land around the rail center

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  20. I would like to see a list of those "contractors" who were granted the jobs. I bet that they are not Racine contractors and Dickert is lying.

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  21. Ronald Reagan was a huge freakin' RINO.

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  22. I want a detailed list of the contractors, who owns them, where exactly do the live (not a mailing address) how many employees they have their where exactly they live (not a mailing address but a physical hundred block would be nice).

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  23. when the properties do not sell,will the unemployed rent the houses from Dickert

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  24. Tim the Shrubber8/26/2010 8:12 AM

    "Greg Helding, I thought you were a republican? You are nothing more than a RHINO ..."

    I think you mean 'RINO'...or do you really mean to say that Helding is a rhinoceros?

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  25. Helding and Wisneski have withstood every election challenge they have had to date. See you on election day indeed.

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  26. I have a question for the nay-sayers. What will make you happy?

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  27. Hey Naysayers - got any better ideas? If so, let's hear them.

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  28. #1 idea remove Dickert. I hear his next idea is to build a Hotel Convention Center Downtown.

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  29. #2 Idea Remove Grant Writer
    #3 Idea Remove PIO not only becuse he i a crony but he is clueless on media.IMHO WRJN is a Radio Station like Hitler was a Peacemaker

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  30. "#1 idea remove Dickert. I hear his next idea is to build a Hotel Convention Center Downtown."

    Yeah, what a horrible idea. That would really suck if we had a decent hotel and convention center.

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  31. Right on! So would come to Racine if only we had a decent hotel and convention center! See the crime, the white only Hvy drinking downtown.

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  32. I thought we already had a hotel and convention center downtown?

    They were supposed to publish the contracts on the City of Racine Website today, but I still can't find them

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  33. hundreds dof jobs for who? Out of 23 homes, our company got a portion of work under $2,000, only enough to give 2 of our guys 1 days worth of work, if that. We heard most of the work went to contractors in Kenosha and Illinois.

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  34. Looking at the list, there are a lot of contractors from the Fox Valley.

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