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Show Council dubious about low-cost housing project by Christopher Smart Even though it doesn't think it's a good idea, the city council won't say no to a group of Park City Municipal Corporation employees who want to develop a housing project with retirement funds. Speaking for the group, the city's Chief Building Official, Ron Ivie, told the council at a March 7 work session that employees wanted to be "in control of their own destiny." Ivie said the employees would like to take the segment of retirement benefits which is now invested with Mutual of New York (MONY) and invest it instead in a housing project geared toward moderate-income families. Currently, Park City employees receive the equivalent of 17 percent of their annual salaries in retirement benefits. Some employees fear that the seven percent share now being invested with MONY will eventually be cut from the city's benefit package. Among other things, Ivie said the housing project would guarantee that employees would keep that seven percent portion of their paychecks. Park City employees now earn an 18 percent interest return on retirement funds invested with MONY. Ivie told the council the employees were aware the project held no guarantees for such a return. On the other hand, Ivie said it would give employees a chance to manage their own money while providing housing for many city workers who otherwise could not afford to live in Park City. But City Councilmen Bob Wells and Jim Doilney, who have first-hand experience with subsidized subsi-dized low-cost housing, were skeptical skepti-cal of the proposal. Wells explained to Ivie and other members of the employee group present that employees who were not living in the project would be subsidizing those who did. . Other low-cost housing projects receive subsidization from federal agencies such as the Department of Housing and Urban Development (HUD) or Farmers Home Administration 'FHA). But in this case the employees would be subsidizing other employees, Wells said. Further, Wells said the only way the project could work is if all employees investing in the project were forced to stay in it for 10 years. He explained that it could be disastrous if a large number of employees withdrew investments at the same time. Doilney agreed with Well's assessment of the housing investment. invest-ment. He added that other problems surrounding the management of the project could lead to a '-'real quagmire." Doilney applauded the group for making an effort to solve Park City's employee housing shortage. But he admonished the employees that putting retirement money into housing could "cause inefficiencies in both." After dissuading the group from pursuing the housing project, Doilney said he would not stand in the way if the group wanted to follow through with the proposal, "If you want to hang yourself, you should be free to do it." He added that he wouldn't vote against the plan because he doesn't want city employees to think possible competition with his own condominium condomin-ium project deterred him. Ivie said the group would continue to evaluate the housing proposal. |