Sheldon applies for grant to raze buildings

Wednesday, April 2, 2014

Nevada Daily Mail

Community members and property owners in Sheldon gathered at the Community Building on Monday to learn about and discuss a Community Development Block Grant that would provide funds for tearing down vacant, dilapidated buildings in town.

Kristi Kelly, a representative of Kaysinger Basin Regional Planning Commission, explained the grant needs 50 percent participation from property owners who meet qualifications to be on the list for demolition in order to proceed.

To qualify for the demolition list, properties had to meet the definition of dilapidated or dangerous outlined in the town's ordinance as well as not have electricity or water and sewer service for one year. Outbuildings are not considered in the grant and are left intact. Phyllis Sprenkle said the list is a work in progress and properties mistakenly put on can be taken off and properties mistakenly left off can be added.

"The first thing you do for the process is take an inventory of dilapidated structures," Kelly said, "and then you contact those property owners and see if they are willing to participate in the program. Some of you have received the letter."

Kelly said if the grant is approved, then a match is required of each property owner, $1,000 for residential buildings and 20 percent of demolition costs for commercial buildings.

"We're going to try to work with the city and community organizations to help pay for a portion of that," she said. "Once that match is met, then we get the property taken down. It's a very competitive application; there's $500,000 available statewide. Ballpark estimates of residential property demolitions go for anywhere from $5,000 to $8,000 to take down. Commercial properties, ones that are connected to others, can go as high as $25,000. Twenty percent of that is a big chunk, but we're going to see what we can do."

A resident who has demolished properties through grants in other towns said none of Sheldon's commercial properties should cost that much, instead ranging from $10,000 to $12,000 for demolition.

"After we are able to remove a majority of the unsafe properties," Kelly said, "then the Department of Economic Development expects the city's condemnation process to kick in and condemn one or two dilapidated properties a year and sustain that level into the future. They want green space to be the ultimate end of the project. You can't build on the property until the grant is closed out. Once the project is done, it will take three to six months to close the grant. Then you're free to do whatever you want with the property."

Mayor Jerod Lamb added that once machines are on sight for demolition, other property owners not involved often hire those contractors too at a cheaper rate.

Kelly said the application for the grant is due May 15, and she needs to know how many property owners are willing to participate by the end of the week.

"Once we submit the application in May, we don't get a funding notice until October," she said. "Once we get funding approval, we will start the environmental review, which is very lengthy. We will start bidding for demolition contractors in April and May of next year. They take two to three months for demolition, and you close out the grant by December."

She said even if the grant is denied this time around, if enough property owners participate she will help the city apply again.

"It's worth it," she said. "The the project is we get a lot of unsafe structures removed, green space added and you get to keep the property at a very low cost for demolition."

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