GALATA Housing Giveaway Fallout: Councilwoman PFM Asks If GALATA Is Bringing Blight To The NW

Mayor Bateman and Councilman Williams did not remember the program, evidenced by their remarks.

We did: http://homesteadishome.blogspot.com/2011/12/director-of-galata-filed-for-bankruptcy.html

            http://homesteadishome.blogspot.com/2010/04/homestead-florida-city-haitian-relief.html

Three residents made the Mayor and City Council aware of a NW home given away to GALATA in December, along with four other homes, had fallen into neglected status creating an eyesore. The photos taken early this week show the properties have been mowed and cleaned up at this time.

 Property referenced in council complaint. 105 NE 17 Street, appearance improved.

Tommy Milner located in Homestead at 122 NW 17 Street stated he worked hard to provide a safe home for his family however problems have occurred as a result of the City of Homestead purchasing property on 105 NE 17 Street directly across from his house. Mr. Milner said the City refurbished the house and turned it over to a corporation called Galata who then rented to a Section 8 family who could not sustain their property and in return was bringing down the property value of the community. Mr. Milner asked why the City did not notify the public about the sale and questioned if the City knew the property was going to be rented to Section 8.

Mayor Steven Bateman asked if the program was run through Finance. Director of Finance Carlos Perez replied the property was owned by Galata who was also responsible for the upkeep. He stated he would follow up on the issue

Councilman Stephen Shelley commented he was made aware of the issue about a week prior went to look at the property physically and discussed it with the City Manager. He did not agree the community was a good area for a perpetual rental and stated staff would be looking into the concern.

*Councilman Jimmie Williams articulated he did not remember the City lease agreement with Galata and asked how often followups and monitoring of the property was conducted with the houses deeded over to Galata.

 *The minutes had councilwoman, we corrected it and Councilman Williams made the motion with Councilman Maldonado supplying the second, ayes all.

Director of Finance Carlos Perez stated the City was currently working on the issue. Councilman Jimmie Williams asked how many houses Galata overlooked.

Director of Finance Carlos Perez replied five.

Councilman Jimmie Williams asked for a copy of contract and asked if NSP money was utilized.

Director of Finance Carlos Perez responded 15 houses were purchased using NSP funds in which five went to Galata.

Councilman Jimmie Williams questioned if the properties were not maintained by Galata was the City to get them back.

Director of Finance Carlos Perez replied he would review the contract

Councilwoman Patricia Fairclough McCormick stated the purpose of the Neighborhood Stabilization Program was to stabilize communities and remove blight however it appeared blight was being brought into the community instead.

The Item: Finance/Enterprise COMMITTEE COUNCILMAN WILLIAMS
a MOTION TO PLACE CAR 184 ON COUNCIL AGENDA APPROVAL OF NSP PROGRAM SUB RECIPIENT AGREEMENT BETWEEN CITY OF HOMESTEAD AND GALATA, INC.
A Motion was made to place CAR 184 on July 26 2011 Council Meeting Consent Agenda Approval of NSP Program Sub Recipient Agreement between the City of Homestead and Galata Inc by Councilman Williams and seconded by Councilman Maldonado.
City Manager Gretsas stated staff recommended the Mayor and Council authorize the City Manager to execute the NSP Program Sub recipient agreement between the City of Homestead and Galata Inc.
Mayor Bateman asked all in favor Vote Ayes all Motion carried

The Councilwoman asked if Galata paid anything for the properties

Director of Finance Carlos Perez responded he would find out.

Councilwoman Patricia Fairclough McCormick said if the agency received the properties for free then they should not be profiting from them.

Mr. Milner asked for a member of Council or staff to meet with him in an effort to better understand the problem City Manager George Gretsas agreed to meet with Mr. Milner the following day.

Councilman Stephen Shelley expressed he represented that district and his door was always opened for comments or concerns.

James Melly located in Homestead at 112 NE 17 Street echoed the sentiments of prior speaker Tommy Milner. Mr. Melly stated he was concerned with the arrangement with Galata because it appeared NSP funds were spent the property was renovated and the house sat with no sales sign and was never openly marketed. He said at some point it was transferred to Galata with a zero dollar tax exempt sale. He stated Galata was a non profit organization who was making a profit from a rental. Mr. Melly said he would like to review the contract because the property was not being maintained.

Mayor Steven Bateman stated the City of Homestead council was responsible with the exception of Councilwoman Patricia Fairclough McCormick and the ordeal took place in 2009-2010. The Mayor indicated he  was not aware that five properties were given to one organization for zero dollars but stated the City would resolve the situation.

Calvin Ephol located in Homestead at 131 NE 17 Avenue echoed the statements of former speakers Mr. Milner and Mr. Melly. Mr. Ephol commented he chose his current neighborhood based off quality and his ability to later retire there both of which were now questionable. He asked if the City rezoned the area for rental properties and asked if the tax base would be affected.