The building in question where additional EDUs are needed to add residential apartments is pictured off Bay Street.

Tara Fischer

Staff Writer

In a tie vote broken by Berlin Mayor Zack Tyndall, the Town Council approved a property owner’s request to purchase and finance four equivalent dwelling units (EDUs) for an addition to a Bay Strreet housing complex.

At the municipality’s Monday, Feb. 24 meeting of the Mayor and Council, the council authorized developer Zachary Grauer to finance four EDUs in his project to repurpose a vacant structure on the north side of his Bay Street parcel. The initiative would see the construction of five new apartment units. One unit will be a two-bedroom space, while the remaining four will be one-bedroom, at around 700 to 800 square feet.

The discussion, which examined whether Grauer should be permitted to finance the EDUs rather than pay the $66,774 cost outright, was met with spirited debate, resulting in a tie that was broken by Tyndall. In the case of a stalemate, the mayor is given the authority to offer a vote by code.

Council members Steve Green and Jay Knerr supported the project. Council members Jack Orris and Vice President Dean Burrell opposed the motion, citing issues with the town’s financing policy, using taxpayer money to offer the loan and neighborhood overpopulation.

While Councilmember Shaneka Nichols was absent from Monday night’s meeting and could not participate in the vote, the mayor maintained that an earlier conversation between the two revealed that she had reservations regarding Berlin’s financing policy.

In 2017, the town approved a project that allows developers to finance five or fewer EDUs over five years. The motion earlier this week aligns with the policy and permits Grauer to finance four EDUs from the town for $66,774 at 525 Bay Street. The developer is to pay a 10% deposit of $6,677 and be charged a 3% financing fee to cover administrative and staff costs.

Despite disapproval from some council members, the town has a precedent for offering Grauer a financing agreement, including previous deals with Sonrise Church, Twisters, Renaissance Plaza, Strawberry Fields and others. Officials said that the municipality has had success with the policy.

“As far as I know, we haven’t had any defaults or delinquencies,” Town of Berlin Administrator Mary Bohlen said.

Still, the discussion was met with objection.

Burrell argued the proposed area is “busting at the seams,” and more housing units would increase traffic and population congestion on Bay Street. He added he approves of the developer’s plan to construct these apartments, but he does not believe it should be completed using taxpayer dollars. Instead, if the property owners wished to proceed, they should be solely responsible for the funding.

“The area is saturated now and is overpopulated,” Burrell said. “This project will add to that situation. I think this project is detrimental to the Town of Berlin. It will impact the quality of life in neighboring areas…This is your project, and I really do believe that it should be completed on your dime.”

Tyndall reminded the council and the public that Grauer is not receiving a price cut. Instead, he has agreed to pay the full EDU cost within five years.

“[The developer is] not getting a discount,” the mayor said. “He’s paying a premium for the EDU and just doing it over a set period of time…[He’s] not getting a gift from the taxpayers.”

Tyndall and the two council members who supported the motion emphasized that the project aligns with the strategic plan objective of increasing the town’s affordable housing.

“We have financed a lot of projects,” Green said. “… I feel that we need to be consistent. To me, affordable housing is in the strategic plan document … we can’t pick and choose what that means and what that looks like. I don’t look at it as getting done with taxpayer dollars. There’s no harm to the residents. I think that we are allowing affordable housing to move forward.”

Orris argued that the town should not be in the business of offering loans.

“I am not sure this is a road we should delve down to any further,” the council member said. “We are not a bank.”

However, given the current policy, supporters of the Bay Street financing maintain the the project aligns with the 2017-approved guidelines. While it would be easier for developers to pay the entire sum at once, Tyndall said that the standard is in place, and if it is “palatable” for the property owners to take advantage of it, then the governing group must honor that request.

“If we still stand by that policy, then they are fitting squarely within the mark,” the mayor said.

The EDU financing agreement was ultimately approved Monday night. However, to address the policy concerns that emerged during the discussion, the 2017 guidelines will be reviewed at the March 24 Mayor and Council meeting following a motion by Orris.

“If you have language or alterations to this policy, or if you feel it needs to be removed entirely, that is the direction that we need because it sends the wrong message to the public,” Tyndall said, addressing the council.