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Topic: SMITH VILLAGE Repayment Tab now over $2 million!
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untanglingwebs
El Supremo

JohnofGB May 19, 2012 at 8:15PM


This is what happens when government gets into an industry that private builders excel at. Flint has already diverted monies from the water fund to hook up these homes and the Flint taxpayers subsidized it with higher water/sewer rates. Lawler better look in the mirror if he is looking to see whom is partly to blame.
Post Sat May 19, 2012 7:54 pm 
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untanglingwebs
El Supremo

Lawler is having a press conference at noon today on the City Hall lawn. He might get rained out. He is blaming Brown for the delays in University Park.

Frankly I think he is blaming the wrong person. Walling and Eason should have coordinated the water,sewer and storm connections at the beginning of the project. Brown has only been in place since december. While I don't like paying for the upgrades in Smith Village, Brown is correctly bidding out and finding altenative funding for city taxpayer dollars.

Residents and others are questioning Lawler's relationship to Charles Young. Speculations are running rampant.
Post Mon May 21, 2012 5:51 am 
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untanglingwebs
El Supremo

Councilman: Flint's EM and political agenda stalling Smith Village


Posted: May 21, 2012 6:35 PM EDT Updated: May 21, 2012 6:52 PM EDT

By Lori Dougovito - bio | email


FLINT (WJRT) -
(05/21/12) - The city of Flint has named two new, out of town companies to take over the second phase of the stalled Smith Village project.

This as one city council member makes a public plea for answers about development delays.

During a news conference Monday, councilman Bernard Lawler says emergency manager Mike Brown and his administration need to put away political agendas and complete the project.

The project has been in the works for years and plagued with problems long before Brown.

Gov. Rick Snyder appointed Brown in December.

Right now, for example, there are 25 homes up, completed during phase one at the end of December, and no one knows when they can move in.

"The house is there. I've been in. It's a very nice house," says Adelaide Evans.

She intends to move in that home.

It will be her daughter's, who is visually impaired.

"This is Alice's dream and I'm trying my best to be a good mom, ok?"

Evans says if they had it to do all over again though, they probably wouldn't go this route.

"I don't think so," she says.

"(I) still want to be here, but if it's going to take from now until next year. I'm going to make some changes," says James Seale.

He says there's been no progress at all over on his lot.

Seale says he stops by nearly every day.

"I wonder. How come that's not coming up? That's not going in," Seale says.

"There has been no clear direction regarding Smith Village in six months," Lawler says,

Lawler points to unpaved streets, sewer work he says the city is responsible for.

It's work not being done.

Lawler says its hindering crews trying to make homes move-in ready.

"According to the plan sent to HUD, phase one must be complete and phase two must be started by June 10, 2012," Lawler says.

"It is obvious this will take more than one month to complete."

The contractor in charge of that first phase of construction is expected to hold a news conference Tuesday.

It's not clear what he will address.

Again, Brown is moving forward with other companies for the second phase, the building of 83 remaining homes.
Post Mon May 21, 2012 6:50 pm 
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untanglingwebs
El Supremo

Smith Village woes: Flint switches developers again amid project delays

Published: Monday, May 21, 2012, 6:00 PM Updated: Monday, May 21, 2012, 6:02 PM

By Kristin Longley | klongley1@mlive.com

View full sizeKristin Longley | MLive.comThe Rev. Jacob Hawkins, a Smith Village resident, speaks at a press conference to highlight construction delays that have prevented some prospective Smith Village homeowners from moving into the development.
FLINT, MI -- Flint emergency manager Michael Brown's office is changing developers on the troubled Smith Village housing project as construction delays keep prospective residents out of their newly built homes.

It's the second time the city has switched Smith Village developers since the project was restarted in 2010. A lawsuit as a result of the first change, which occurred under Flint Mayor Dayne Walling's administration, is pending in Genesee County Circuit Court.

Brown's office says project delays are the primary reason for the latest switch, although prospective residents and a city council member say the current developer was on track and the city is at fault for the hold-ups.

"We needed to get that project completed," said Tracy Atkinson, Brown's appointed director of the city's community and economic development department. "It had basically been stalled for several different reasons since December. We need to have somebody who could get a project done."

Charles Young of Smith Village Construction Services, the current developer, declined to comment Monday, on advice from his attorney, he said. Company spokeswoman Lela McGee-Johnson said they would hold a press conference at 1 p.m. Tuesday to release a statement about the situation.

A message seeking comment was also left for Bret Russell, who is listed with the state of Michigan as the principal agent for Smith Village Construction.

The new developer is Ginosko Development Co. of Milford and the new general contractor is Rohde Construction Co. of Kentwood, according to Brown's office. City officials said they could not immediately respond to The Flint Journal's request for the bid proposals from the companies.

Brown's office says Ginosko will help the city meet its federal requirement of building 83 homes, at least half of them for low- to moderate-income families.

The company has a history of hiring 40 percent local, low-income workers in their workforce, which is more than required by the federal government's U.S. Department of Housing and Urban Development, Brown's office said in a news release. He said the developer is properly bonded and licensed.

"Ginosko Development Co. has completed multi-million dollar, single- and multi-family
residential projects successfully in the past," the statement says.

But Flint City Councilman Bernard Lawler, who represents the 5th Ward where Smith Village is located, was unhappy about the developer switch, especially since the companies are not locally based. Lawler also said he was never informed of the change before it was announced.

"He (Brown) declares there will be transparency and inclusion," Lawler said. "Where is the transparency?"

Lawler made his comments at a news conference he called to highlight the construction delays that have kept several families out of their newly built Smith Village homes.

At least 25 houses stand on the development site, but can't be occupied because roads aren't paved, sewers aren't connected and other work such as landscaping, driveways and patios isn't completed.

Lawler said the roads and sewers are the main issues, and the city is responsible.

Atkinson admitted that the city should have had funding in place for the roads and sewers, but said that's still no excuse for the developer not finishing the houses that are at the development.

"They could still go in and finish the homes," she said.

Atkinson said the new developer will be responsible for finishing this first phase of homes, as well as the balance of the 83-unit development.

The Smith Village project started 14 years ago, but stalled over the course of several administrations and was never finished, despite funding granted by the federal housing department.

The project was restarted in 2010 under threat of penalty from the federal government, and the city was required to pledge its available resources to complete the development or risk having to repay $1.1 million.

Prospective homeowner Robbie Grier said she just wants the city to come to a resolution so people can move into their homes.

As a music teacher, Grier said her personal life and professional life have been interrupted by the delay. Half of her belongings are packed in boxes waiting to be moved, and her landlord has "graciously" allowed her to live in her apartment on a month-to-month lease, she said.

Grier worries that the delay will cause her to lose her financing or affect her credit.

"Are we going to lose on that end?" she said. "Our financial future is in limbo."

Grier said she's going to wait out these most recent developments, but that doesn't mean she won't be an activist. She said she believes Young has been a good developer from what she's seen.

"Nobody's perfect," she said. "But I do believe Charles has done all they can do from what I know."

ic23b May 21, 2012 at 6:23PM


Smith Village has been nothing but a scam of Federal dollars since the day it started 14 years ago. Nothing will happen until the next deadline and the minimum will be done again. All the grant money is long gone.


Whiteone May 21, 2012 at 6:43PM

R.White/:

Sounds like Mike Brown has taken a few pages from Donald Williamsons book... Under the table envelopes filled with boat and vacation money... Hire a contractor rather local or out of town and get the job done!!! This project has been delayed for far too long. Politics is what got Flint into trouble and politics will continue to be Flint's demise!


numero407 May 21, 2012 at 7:34PM

I see Reverend Flynn in the photo. I wonder where his megaphone is.

67chevy May 21, 2012 at 7:45PM

14 years, really making progress. What a total Flint failure. How many does this one make? Did previous developers get paid? How much did they funnel back to the politicians?
Post Mon May 21, 2012 7:02 pm 
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untanglingwebs
El Supremo

Under Walling and Eason the initial developer choice and the swtch in the 11th hour to Young were both improperly done.

Metro Community Development must have been pressured to come up with Young as a partner and the pending lawsuit has sat in Yuille's chambers since mid December. look for it to cost the city some money aside from all of the legal expenses so far.

Lawler and his entourage look like fools. The plans for infrastructure and the cost should have been one of the first things done.

In my opinion, Young and Russell did not meet the criteria for this project. Don't forget this had to be approved by the state for Brown to enter into these new contracts, MSHDA and HUD.

Just two weeks ago Neeley told participants in a meeting that the County had imposed road restrictions. The houses were already there, what else needed to be hauled in?


Last edited by untanglingwebs on Sat Feb 09, 2019 8:08 am; edited 1 time in total
Post Mon May 21, 2012 7:15 pm 
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untanglingwebs
El Supremo

Some council need to be more cautious about who and what they support. Citizens are angry and there are accusations of kickbacks, croneyism and bribes being bandied about in the community. A look at M-Live gives a glimpse into the mindset.
Post Mon May 21, 2012 7:22 pm 
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untanglingwebs
El Supremo

This issue was discussed befor. Eason committed many millions in future city funds (federal funds too) in order to complete this project. He bragged that he saved the city a $1 million dollar repayment, but there was considerable work done to prevent that repayment anfd it could have been argued.

Now the city must pay for all of the infrastructure (water,sewer and roads) as well as the sidewalks, trees and landscaping. The budget generated under Walling did not even include the cost of the sewer and water tap ins. Flint must also buil a new early childhood development center and a center for the performing arts.

With all of this expense for Smith Village, where does Lawler, Nolden and Flynn think the money will come from for their Northeast plan?
Post Mon May 21, 2012 7:29 pm 
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untanglingwebs
El Supremo

Ginosko Development Company (GDC) is a rapidly growing family of companies involved in all aspects of affordable housing development, construction, ownership and management. Although the organization was formed in 2002, the roots of its dedication to quality affordable housing reach back more than half a century. Founded by Amin Irving and John Hayes, Ginosko Development Company began by recognizing the growing demands of preserving and establishing affordable housing.

September 2003: GDC obtained site control over its first property in Battle Creek Michigan known as Springview Tower a 175 unit apartment complex.

July 2004: GDC was awarded $200,000 in development proceeds.

June 2005: GDC was approved by HUD to decouple a 236(e)2 Interest Reduction Payments.

June 2005: GDC successfully implemented a 14% increase in rents increasing property value over $400,000.

August 2005: GDC closes a $7.87M real estate transaction.

September 2005: GDC received a reservation of over $2 Million in Tax Credits.

May 2005: GDC secured site control over a 76 unit property in Detroit, Michigan.

December 2005: GDC received an award of $3,459,000 in Tax Credits.

April 2006: GDC closes on a 30 Scatter Site Home project in Ohio totaling $5.34M.

September 2006: Obtained $1 Million from the United States Department of Agriculture.

November 2006: GDC closes a $6.25M deal to rehabilitate/own a 76 unit apartment building in the New Center Area of Detroit.

January 2007: GDC secured site control over a 60 unit property in Michigan.

February 2007: GDC successfully obtains nearly a Quarter Million from City Proceeds.

October 2007: Ginosko Development Company expands into larger office complex to accommodate for rapid growth.

November 2007: GDC obtained site control over a 71 unit apartment complex in Detroit, Michigan.

April 2008: GDC awarded over $3.4 Million in Tax Credits.

April 2008: GDC obtained site control over two 100 unit apartment complex's in Chicago, Illinois.

September 2008: GDC obtained site control over 775 units in Michigan.

September 2008: Amin Irving recognized as Crain's Detroit Business Top 40 Business Person's Under 40 Years Old (He was only 31).

September 2008: GDC awarded over $10 Million in Tax Credits.

November 2008: GDC awarded over $1.7 Million in City HOME funds.





Copyright © 2007 All rights reserved. Ginosko Development Company
1100 Corporate Office Drive Suite 110 Milford, Michigan 48381 - Phone: 248.676.0220 - Fax: 248.676.0880 - Email: info@GinoskoOnline.com

Web Designed by Digital Marketing Solution LLC


- Email: info@GinoskoOnline.com
Post Tue May 22, 2012 6:30 am 
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untanglingwebs
El Supremo

FLINT, MI (WNEM) -
It's been more than 14 years since a federally funded housing development was announced for Mid-Michigan.

But while the construction is still ongoing, no one has moved into any of the homes, even though they are mostly completed. On top of that, the roads aren't paved and there's no running water.

Not everyone is happy with the slow progress at the subdivision. On Monday, Flint City Councilman Bernard Lawler held a press conference to voice his concern that Smith Village may never get off the ground.

Lawler, who represents the Fifth Ward, spoke with TV5 about the situation. "My concern is that the current administration, Mike Brown, is not sharing information with me as I advocate for the residents in this area as the Fifth Ward City Councilman," said Lawler. "Those that have purchased homes are ready to move into their homes - there's no communication."

Lawler continued, "The homes have been built according to HUD compliance [as of] December 2011, there [were] 25 homes that were built. There's been no activity, so people were not able to move into their homes. The reason is because the roads and sewers have not been built. The city is responsible for the roads and sewers. There's no sidewalks, the streets are dirt roads.

"Before Mike Brown came on board, in November of 2011 [city council] approved money to come out of the sewer fund so that the sewers can be put into place. The road construction was already in place," said Lawler.

More than $760,000 was approved by the city council to go directly to the developer for water and sewer hook ups at the housing site. So far, that work still isn't done.

When TV5s Tia Ewing asked Lawler what the problem is for Smith Village in one sentence, Lawler responded with, "politics, I'm not certain of the full political agenda, but there has been a proposal to go out for bid for another contractor and another developer, and there's been no sightings of the current contractor and developer - there's too many hiccups [in the process]."

Shortly after TV5's first report at noon on this situation, the City of Flint issued this statement:

The City of Flint is announcing that the next phase of development on Smith Village (Phase II) will be undertaken by Ginosko Development Company and Rohde Construction Company. Ginosko Development Co. is bonded and licensed as a developer and has completed several development projects using MSHDA (Michigan State Housing and Development Authority) funding.

Ginosko Development Co. has completed multi-million dollar, single and multi-family residential projects successfully in the past. In addition, Ginosko Development Co. has a history of using 40 percent local low-income workers in their workforce, which is above the 30 percent mandated by Section 3 of HUD for projects like Smith Village. Ginosko Development Co. will help the City of Flint make its deadline of building all 83 remaining homes by next year.

About a year ago, The city of Flint found out it will not have to pay a $1.1 million penalty for the long overdue housing development.

According to published reports, the federal government has agreed to waive the fine under several conditions.

The Flint Journal reported the city must build at least 83 houses, half of them for low- and moderate-income families, dedicate the resources necessary to complete the project, "including effective coordination among city agencies and priority for city approval processes" and "give priority to the Smith Village neighborhood for the commitment of available city resources."

The U.S. Department of Housing and Urban development originally asked for a repayment of a $1,086,935 grant, saying Flint did not meet federal deadlines on the Smith Village portion of the project.

Copyright WNEM 2012 (Meredith Corporation). All rights reserved
Post Tue May 22, 2012 6:38 am 
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untanglingwebs
El Supremo

The U.S. Department of Housing and Urban development originally asked for a repayment of a $1,086,935 grant, saying Flint did not meet federal deadlines on the Smith Village portion of the project.
______________________________________________________________
Measures were taken to develop infrastructure and circumvent this repayment.

The initial construction of the first six houses on Chippewa, behind what once was the Kennedy Center, was delayed at first because the infrastructure was being put in place.

Williams Street is only 40 feet widw and the original engineering plans did not call for homes facing this street.

The City under Walling and Eason failed to get the proper bonds and other development requirements in place.

Lawler was pushing for Young to be a partner of the Northeast development project. There was a press conference linking praise for Obama and this development.

The city, under Walling and Eason, failed to comply with FOIA requests for information on the subcontractors and company principles although the city was to make these selections per the development contract.

Subcontractors were put to work before the initial development contract was in place and there was no performance bond to pay them. The minority contractors lost one-third of the money owed to them. Tia Ewing covered this story too.

Brown had to have approval from MSHDA and the Governor's office to make this change. They also had to have approval from HUD. This was not a decision he made lightly.
Post Tue May 22, 2012 6:55 am 
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untanglingwebs
El Supremo

FOIA requests that were filled indicated that the two companies initially selected were probably not properly vetted. A representative of the Department of Community and Economic Development signed documents
(belatedly) that Charles Young was in compliance. He was not and nothing was on file for Bret Russell. After increased demands the city produced a letter of credit from a bank for Russell (dated long after the initial request).

The government should examine documents for kickbacks and fraud . What will happen to the lawsuitthat has lingered in the Judges Chamber since mid December. Yuille is a stickler for the swift course of judgement so the delay in this case is unusual.
Post Tue May 22, 2012 7:07 am 
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untanglingwebs
El Supremo

About a year ago, The city of Flint found out it will not have to pay a $1.1 million penalty for the long overdue housing development.

According to published reports, the federal government has agreed to waive the fine under several conditions.
--------------------------------------------------------------------------

The "several conditions" Ewing references require the federal and city resourses for several years. All costs for roads, sewer, water, and sidewalk improvements must be born by the city. Even if federal money is used, that takes much out of the equation for development in other areas. Flint must also build a child development center, a health center and a center for the performing arts.

The money for northeast development projects will be tied up for some time.

Some residents believe kickbacks and bribes were involved in the initial selection of a developer.
Post Tue May 22, 2012 7:08 am 
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untanglingwebs
El Supremo

Booted Smith Village developer addresses rumors, explains turmoil
[Posted by Sarah Wojcik | swojcik1@mlive.com May 22, 2012, 5:30 PM]

Brett Carlsen | MLive.comCharles Young, President and CEO of Smith Village Construction Services, delivers his side of the story on the Smith Village Construction situation. Lela McGee-Johnson, the company spokesperson, stands at his side.
FLINT, MI -- The ousted developer of the city's Smith Village project says he's taking the "high road" by not suing the city.

Charles Young of Smith Village Construction Services called a press conference Tuesday to deliver his side of the story on Flint's delayed housing project.

The developer made it clear that he felt unwanted in the city under emergency financial manager Michael Brown's administration.

The company signed an agreement Monday to completely pull out of the 83-house project and allow Ginosko Development Co. take over.

Despite pressure to sue the city over liability issues, Young said he wishes to make the new homeowners' transition as painless as possible by not delaying the development.

"It's not about the money. It never was," he said. "It's truly about the people, residents and new home buyers, and the community."

He said he lost $1 million in five months on the project.

Young stated his pride in completing 25 homes in four months, which he said can't be inhabited because the city didn't pave the roads.


"We could have put those people in those homes if we had just had a passable road," he said. "The city would not issue us a temporary occupancy permit."

Young said a third party consulting company hired by the city to oversee the work never notified him of a problem.

"If there was a violation, they'd have to give us a 30-day notice and give us 30 days to fix it," he said. "We never saw any notice."

Politics kept coming up in Young's address.

He said Flint City Councilman Bernard Lawler, who represents the 5th Ward where Smith Village is located, did not respond to his request in December for a meeting.

"We have never partaken in politics and that's not who we are," said company spokesperson Lela McGee-Johnson. "We are here to transform and make better lives, creating safe and affordable homes, as well as employment opportunities."

It's the second time the city has switched Smith Village developers since the project was restarted in 2010. A lawsuit as a result of the first change, which occurred under Flint Mayor Dayne Walling's administration, is pending in Genesee County Circuit Court.

The original project began 14 years ago.
Post Tue May 22, 2012 5:16 pm 
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untanglingwebs
El Supremo

Developer dismissed from Flint housing project trying to fight myths, rumors


Posted: May 22, 2012 4:07 PM EDT Updated: May 22, 2012 5:33 PM EDT

By ABC12 News Team - bio | email


FLINT (WJRT) -
(05/22/12) - The developer who was dismissed from Flint's Smith Village housing project says he's trying to fight the myths and rumors that are damaging his reputation.

Charles Young says people are talking behind his back

Young says Smith Village is behind schedule because of politics in Flint City Hall, and he says money has been set aside to pay suppliers and vendors.

"They will get paid. As of yesterday, the funding was set up. It's now in the city's hands. All the funds will go into an escrow account. A title company called Sergeant Title will clear people who come in with their releases. If they've got the paperwork, they'll get paid," Young said.


Right now, 25 homes have been completed, but no one knows when they can move in.
Post Tue May 22, 2012 5:38 pm 
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untanglingwebs
El Supremo

I missed Tia Ewing last night, but I understand she interviewed a vendor that was owed $120,000. Channel 12 today says the sub contractors and vendors will be paid. I wonder if they will have to take discounts as the first unpaid vendor did.

Last edited by untanglingwebs on Sat Feb 09, 2019 8:10 am; edited 1 time in total
Post Tue May 22, 2012 5:42 pm 
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