Using financially troubled hotel to house homeless people derails social housing plan | Local government
Any lien on the property would have been resolved in the final sale price.
But Gorman made a deal to buy the property in Chilewood without knowing that the hotel would be used as a temporary shelter for the homeless after the closure and under his property, said Ted Matkom, president of Gorman Market in Wisconsin.
Gorman, uncomfortable making an acquisition under such circumstances – especially because his back-up plan if he didn’t receive WHEDA tax credits was to modernize and use the property as a commercial hotel – a now turned down the city’s $ 1.85 million price tag and no longer agreed to buy the property, Matkom said.
It’s unclear how long the property will be used to house the homeless, especially if other options don’t surface, and Gorman didn’t want to be able as the owner to force people out onto the streets. as he met the city and the contracting state. obligations to convert property into housing, said Matkom.
“It has become too complicated for us,” he said.
Depending on the circumstances, Gorman could revisit a project at the site in the future, Matkom said.
âOf course, we are disappointed that Gorman is pulling out of a project which we believe has good potential,â O’Keefe said. “But whether it’s here or elsewhere, whether it’s Gorman or another developer, we remain interested in exploring the use of hotel properties to help meet housing needs.”