The Hollister City Council decided this week to discontinue
negotiations with investors with the Lado Del Rio apartment complex
over a proposed city loan, which would have been worth up to $1.8
million.
The Hollister City Council decided this week to discontinue negotiations with investors with the Lado Del Rio apartment complex over a proposed city loan, which would have been worth up to $1.8 million.
Redevelopment Agency Director Bill Avera brought the item before the Council Monday, moments after Council members turned down a controversial $1 million loan proposal – on an informal vote of 3-2 – to a contractor for his renovation of a historic building downtown. The Council informally voted 4-1 against further consideration of the Lado Del Rio loan.
Councilman Tony Bruscia was the only advocate on the Council in favor of continuing negotiations.
“I wasn’t ready to say ‘yes.’ I would have liked to have gone back to make sure this money is going to be well spent,” Bruscia said. “If there’s appropriate accountability, I’d be willing to loan the money.”
Councilman Robert Scattini expressed dissatisfaction with the city lending such a large sum to a profit-bearing agency.
“That’s an awful lot of money,” he said.
Built in 1982, Lado Del Rio is a 42-unit affordable housing complex that receives assistance from the U.S. Department of Agriculture. Building officials have experienced problems in recent years at the complex with residence neglect of housing code issues. Its investors requested the loan for repairs to ultimately improve the health and safety of the building.
“How do we go about lending these people $1.6 million when it’s been poorly managed for 20 years?” Councilman Tony LoBue said.
Although Avera advocated continued negotiations for a loan to Lado Del Rio, he said, “There was probably not a lot of caretake in the units.”
