Menlo Park council buys home

Let's check the math. 4 of our City Concil members voted to spend $349,000 (plus closing costs) for the opportunity to invest $140,000 for property improvements, in order to sell the home for $409,000.

That is an instant, $80,000 out the door. Couldn't we simply subsidize someone's rent by that much? Sorry Heyward, Kelly, Rich & Andy, I just don't get the math on this one. The article makes it sound justified...because there aren't any BMR houses available? And this house didn't sell for two years (how much do we over-pay?!!!).

Nuts.

The house was on the market for two years, ergo, it was overpriced. Whatever you may think about the city's program, by overpaying for this house, the city is contributing to keeping housing prices in Belle Haven artificially high. By so doing, they are ensuring that fewer people will be able to afford a house -- without, of course, more government intervention.

It's a small house on a small lot. Why on earth would anyone pay over $400k when there are larger non-BMR houses in Belle Haven that are selling (or rather, not selling) for less?

A bad decision in so many ways.

Menlo Park should get out of the real estate game. They can't even control their own finances!

If you want this type of financial insanity to continue just vote for Heyward Robinson and Richard Cline. If you want to restore fiscal discipline and accountability to the residents I urgently implore you to vote for: Peter Ohtaki, Chuck Bernstein, and Russ Peterson.

Why not just think of it as a way of raising your property value and getting the market moving? AND the realtors are running out of ways to pay for Prozac.

As usual the city has no financial savvy - who pays the list price in Belle Haven these days?
Also as a 5bdrm 2 bath house of 1,460 sq. ft. what do you want to bet that the one car garage has been converted to a bedroom. Will the city make the buyers bring it up to code, will they fine them for the misuse of the garage? Will the city bring it back to code?
Also $140,000 is a heck of lot of money to make the place spiffy. Who are they planning hiring, an Atherton estate contractor?
And why does the city need to make a $500,000 home in an area where the price range is $275K to $400K.
I guess they just want to make some more places unaffordable.

OR....how about requiring people like the Beltramos to stick to their original deal and build 3 BMR units in the project rather than accepting in lieu of fees that can then be spent to buy houses in Belle Haven and sell them at a loss.

It is excellent that Menlo Park is so well managed, and its finances so secure, that the City Council has the attention and energy to broaden its portfolio to include real estate investment and management.

Congratulations, Menlo Park! You are one of a kind.

Greater Fool Theory, Law of Unintended Consequences,
"OPM" Other People's Money, MBA not required to see this deal smells,
You choose your label on this scam.
A little homework never hurts.
Here's what public records show, pay attention, it's your tax dollars at work to serve certain political agendas.

So, Gomez pays $10K over $699K list in '05, gets 80% 1st with no name (don't ask, don't tell) underregulated, now insolvent, minor lending institution, a 10% 2nd from Countrywide (now BofA).
$10K in "non recurring closing costs" (maximum allowed by lenders) gets kicked back to ??? Appraisal comes in at $710K because appraiser doesn't care.

Gomez defaults in '09 because he's underwater, cures default in fall '09.
Listing agent reduces price to $349K few months back, subject to short sale lender approval, may or may not happen.
Hears that city's got a pot full of BMR money and "staff housing specialist?" with authority to "find some deals no matter what they cost the city".
MLS in '05 says additions, upgrades with city permits expanded from 2 br. to 5 br.
City staff estimates $140K fixups to resell at loss.
In other words, $70K fixups, $70K administrative overhead and contingencies.
Gomez is current on loan payments, no current Notice of Defaults, but he gets out of a bad deal because sucker city council buys into staff urgency.
Instead of City helping Gomez with an Obama loan rework, Gomez gets evicted by City, City overspends on fixups, sells to another Gomez at a loss to city.
It's an election year, and the inmates are running the asylum.
So let's re elect the senseless incumbents, just like 2 years ago. Remember Kelly's Park Theatre Duncan Dance Studio scheme.
Makes you want to laugh and cry at the same time.

A further check of records showed that possibly the same individual (same name) sold a home on the 1200 block of Carlton (Bell Haven) in Aug 2009 for $300K, a loss of $137K on the price that person paid in 2004.

Wouldn't it be fascinating if it turned out that the Almanor owner has a city gov't connection? Nah, even Menlo Park isn't that foolish.

Just a thought. Isn't the Almanac supposed to be finding this stuff out for us - the reporters do have access to the same records we do.

Actually, this was a good decision to make just prior to the election. It's a shame that all 5 seats aren't up for a vote.

And you wonder why our city council has the reputation it does -- bad decisions; lots of energy exerted and not a lot of good results......

Not the same person.

Not

This deal once more demonstrates the reckless and irresponsible actions of the City COuncil. People should not reward incompetence by giving the same dunderheads another 4 years. Do not vote for Robinson and Cline. Learn from your mistakes. Do vote for Ohtaki & Bernstein. They are fiscally responsible people.

Who started this program, proposed it and took all the credit for it?

Hank has lauded him as a fiscally responsible guy over and over.

Can you guess?

Andy Cohen, hero of those poor folks put upon by the Menlo Park Man.

Hank, are you able to see the facts for what they are? This program was approved more than a year ago and set in motion the decision last week.

Does it matter?

Or are you just another high school kid playing personality games?

I suggest each Council Member and his/her families take turns (for weeks at a time)living in their new investment property, until the home is sold. That'll cure their real estate savy!

...except councilmember Boyle for his lone vote against. Sad, and entirely understandable why he is not running again. A voice of responsibility and reason. May the elections bring more of these.

Andy Cohen is a work in progess; but he is slowly getting there. When compared to Heyward Robinson & Rich Cline he is the postrer boy for fiscal responsibility. Could be worse. We could have had Gail Slocum running for City COuncil.