After nearly an hour of discussion and comments, the Chillicothe City Council approved accepting the Strand Hotel Apartments. City Administrator Roze Frampton says it was a tough decision.
The payment will satisfy a lien by the Missouri Housing Development Commission.
Under the agreement, the owner will pay $70,000 towards the needed repairs to the building to bring it back up to code. The remainder would be paid by the management company hired by the city, Zabka Properties,
The agreement of the “Gift” to the City must be approved by the Missouri Housing Development Commission before the transaction is completed.
The Strand Hotel Apartments are currently low-income housing. Later this year, Zabka properties will begin transitioning the apartments to market-rate as they become available and are repaired or improved for occupancy.
The motion to approve the agreement to accept the Strand Hotel Apartments was made by Councilman At Large Tom Ashbrook and seconded by 1st Ward Councilman Reed Dupy. The vote was 3-2 in favor, with Ashbrook, Dupy, and 2nd Ward Councilman Wayne Cunningham voting Yes. Third and Fourth Ward Councilmen Josh Fosdick and Pam Jarding voted No.
Development Agreement
The Development Agreement for the Strand Hotel Apartment properties with Zabka Properties was unanimously approved by the City Council Monday.
Under the agreement, Zabka will make all repairs necessary to the building and will manage the property, including the collection of rent. He will be responsible for the maintenance of the building, including the remaining cost of the repairs to bring the building up to code.
The apartments will transition from low-income housing to market-rate apartments beginning in November, as they become available.
In approximately, three years, if the agreement has been fulfilled, the city will deed the property to Zabka.
Zabka commented following the vote.
He thanked the council for their support.
