Wednesday, January 12, 2011

USA Today: November home prices fall 5%, expected to fall more






U.S. home prices fell 5.1% in November from a year earlier and are expected to go lower as the housing market struggles to find its recovery, according to a report Tuesday.

Real estate analytics firm CoreLogic said that single-family home prices declined for the fourth month in a row and at a faster pace. They dropped 3.4% in October year-over-year.

November declines occurred in 44 states, up from 18 in June when federal tax credits for home buyers were still pumping up sales. Sales and prices fell after the credits expired.

The credits "created the illusion that the market was stronger than it's been," says Patrick Newport, economist at IHS Global Insight. His firm predicts national home prices will fall 5% to 7% more this year before potentially rebounding later in the year.

Rather than draw many new buyers into the market, the credits "just pulled sales forward," says Sam Khater, CoreLogic senior economist. The higher rate of decline in prices in November from October underscores the big challenges the market faces with recovery, he says.

The state of the housing market isn't good news for the overall economy, which is showing improvement. But lower home prices are also not surprising given the expiration of the tax credits, says economist Mark Zandi of Moody's Analytics. The economy avoided a double-dip recession, but "Housing is double dipping," he says. Zandi expects home prices to continue to decline, about 5%, until at least midyear. By the time prices hit bottom, the housing crash will have lasted five years and driven prices 35% off their 2006 peak, he says.

CoreLogic reports November prices did rise in six states: Indiana, Vermont, New York, Wyoming, North Dakota and Maine. Maine led the nation with an 8.6% jump, followed by North Dakota at 4.4%.

In general, states seeing rising prices didn't experience the real estate boom to the extent that other states did, and so they aren't feeling the bust as much, says IHS Global Insight analyst James Diffley.

Market researcher Zillow, which doesn't include foreclosure sales in its data, says November marked the 53rd- consecutive month of declining home values. Zillow's data show national home prices down 5.1% in November from November 2009, resetting to levels last seen in October 2003.

Zillow expects sustained declines until late 2011. Even then, "The bottom will be very long and rocky," says Zillow chief economist Stan Humphries.

Monday, January 10, 2011

Columbus City Council Appoints Two New Members


City Council Appoints Two New Members

(Columbus)— Columbus City Council President Andrew J. Ginther is pleased to announce the appointments of Michelle M. Mills and Zachary M. Klein to the City Council. Both were selected from a field of nearly 50 applicants and will immediately begin their duties as Councilmembers.

“From the very onset of the application process, I was impressed with the quality and caliber of all who applied to fill the vacancies on Council,” said President Ginther. “On behalf of my colleagues, I would like to thank those who submitted resumes and took part in the interview process. I am certain that Councilmembers Mills and Klein will serve with distinction as we work to create an even better community to live and raise our families.

Resumes for Councilmembers Mills and Klein are attached.

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Klein Resume -


Mills Resume

Sunday, January 9, 2011

Columbus Dispatch: (In Italian Village) Old bakery inspires rising hopes


Old bakery inspires rising hopes

Despite delays, planners enthusiastic about turning vacant building into creative multiuse space

Sunday, January 9, 2011 02:57 AM

THE COLUMBUS DISPATCH

Wonderland co-founders, from left, Josh Quinn, Adam Brouillette and Andrew Dodson
Tom Dodge | DISPATCH photos
Wonderland co-founders, from left, Josh Quinn, Adam Brouillette and Andrew Dodson
The building as seen looking south on N. 4th Street
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The building as seen looking south on N. 4th Street
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Artist renderings of how the Wonder Bread factory would look as the multiuse arts space Wonderland
BBCO Design photos |
Artist renderings of how the Wonder Bread factory would look as the multiuse arts space Wonderland
Artist renderings of how the Wonder Bread factory would look as the multiuse arts space Wonderland
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Artist renderings of how the Wonder Bread factory would look as the multiuse arts space Wonderland
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Open chairs and Wonder Bread sandwiches lasted only minutes at the first meeting, when hundreds of excited guests crammed into a room and hallway in Junctionview Studios to hear about a large, recently empty structure at 697 N. 4th St.

The 64,000-square-foot brick building, as of that night, was known no longer as the closed Wonder Bread bakery but as the future site of Wonderland, a multiuse space for art, performances and retail.

Proposed by an artist and four entrepreneurs, the idea sparked such instant enthusiasm that, in two weeks, a Facebook group in its honor amassed more than 5,000 friends.

A neighbor in Italian Village was among the first to comment on the page: "Oh my GOD, I am SO excited about this!"

"This is out of control, beyond awesome!" followed a city-planning professor at Ohio State University.

"YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!" wrote an artist, using twice as many exclamation marks.

And then, there wasn't much news for several months.

One year after the announcement, the 100-year-old building is still, for the most part, a big abandoned bakery. The founders, who originally said tenants would move in last summer, now aim for an opening party in which the iconic Wonder Bread sign would be lighted on New Year's Eve 2011.

Critics have compared Wonderland to Ibiza, which isn't a compliment. The Short North housing development remains a vacant lot, stalled since 2006.

Last January, though, the vision for Wonderland was relatively simplistic: a building with rented spaces that could be constructed by volunteers with hammers.

Then came that first meeting, the inquiries from more than 1,000 prospective tenants and the comments from community leaders about Wonderland as a boon to economic development and a symbol of the city's creative spirit.

"It really became much bigger than just a bunch of storage units. It became a cultural zeitgeist," said artist and co-founder Adam Brouillette, 30 - who is now Wonderland's executive director.

"When people ask me, 'I thought you guys were going to be done by now,' I say we had a choice: We could do it fast, or we could do it right. We just chose to do it right."

Wonderland leaders expect more visible progress in the coming months, when they secure nonprofit status and kick off a fundraising campaign. The organization will begin leasing the building, purchased for $1.2 million last year by real-estate developer and original co-founder Kevin Lykens.

The team, which now consists of Brouillette, co-founders Josh Quinn and Andrew Dodson and a board of directors, will also introduce a series of monthly events.

At a Chinese New Year celebration planned for February, a lighthearted science fair in March and an April show-and-tell dinner with the newly selected Wonderland tenants, more about the group's plans will be revealed.

Construction, expected to begin by June, will likely entail the building of artist studios, rehearsal spaces, a performance and event venue, a recording studio and places to eat, drink and shop.

Artists and possibly community members could share equipment in workshops, those without offices could rent a workspace, and tenants and visitors alike could display their work in a shared gallery.

One mode of transportation between the two levels: a tube slide, playground-style.

Wonderland officials, who plan to select about 150 tenants in March, have unexpectedly received more than 1,000 proposals, including some they had never imagined - including a 20,000-square-foot brewery and a closet-sized space where a tenant would spay and neuter cats.

The atmosphere should be collaborative, with each tenant having opportunities to work with others - whether the occupant is a musician or a lawyer helping artists with intellectual-property issues.

For Eric Rausch, a ceramic artist who works out of a musty South Side warehouse, Wonderland could mean having a studio with more equipment, the space to host workshops and gallery exhibits and the chance to learn from a neighborhood of diverse artists.

"It all sort of seems like I'm describing the dream," said Rausch, 27, of the Short North.

Of course, Wonderland can't become reality without funding.

Brouillette once pegged the project cost at $7million to $9million, later saying the estimate could be higher or lower, depending on the selection of tenants and contractors. Regardless, he feels confident that Wonderland can secure the funding despite the current economic challenges.

"I graduated from (Columbus College of Art & Design) with a printmaking degree; I haven't run a multimillion-dollar fundraising campaign," said Brouillette, who heads the arts group Couchfire Collective and manages Junctionview Studios in Grandview Heights.

"But I've come to a pretty distinct understanding that this is, in the grand scheme of things, not that large of an amount of money."

Wonderland has qualified for up to $1.2 million in state and federal tax credits for historic preservation and was recently awarded its first grant: $50,000 from the Columbus Foundation.

The Hodge Group, the project's hired fundraising consultants, won't specify possible sources of funding yet.

But Russell Hodge, managing partner, said Wonderland can find success by diversifying its fundraising: pursuing additional grants, corporate donations and "nontraditional opportunities."

What Brouillette calls a "fancy wedding registry" will be created online so that individuals, who will be recognized on plaques when the building opens, can make donations toward tangible items such as drywall, doors or light switches.

Already, in the absence of formal fundraising, more than 2,500 individuals have made contributions to the project.

"One of the impressive factors here has been the groundswell of support that has been generated for this project, which shows that it's really not a noble vision of a few but a cause among many," said Doug Kridler, president and CEO of the Columbus Foundation.

The Wonderland grant, he said, is rare during an economic time when the foundation isn't looking to fund startup efforts. In 2009, less than 1 percent of its funding went to new organizations.

"It comes down to what refreshes a city, and it's the ability to renew and reinvigorate," he said. "This is a great idea being advanced by smart, open and highly engaged people."

Wonderland, projected to be self-sufficient at 80 percent occupancy, would eventually buy the building and use its profits to fund loans or grants for tenants who outgrow their space there and wish to establish their own facilities.

When paired with existing resources, Wonderland could help sell the city in both tourism and business circles, said Mike Brown, director of development and public affairs at Experience Columbus.

"For me, this is exactly what the real Columbus is all about," he said. "There's this appetite among the young, creative class in Columbus to do something.

"The Wonderland project is a place where it's crystallizing. It's giving them a mission."

Brouillette hopes visitors to Columbus will return home talking about "this crazy old Wonder Bread factory where there was all this stuff going on" and that the city will be mentioned among New York; Los Angeles; Austin, Texas; or Portland, Ore., as a cool place that creative people want to move.

"But I think Columbus is not like Portland or Austin," he said.

"I think Columbus is like Florence, Italy, in the 1500s: We are essentially beginning a new renaissance."

asaunders@dispatch.com

Thursday, January 6, 2011

NY Times: A Little-Known Strategy for Cutting Mortgage Payments



Mortgages

A Little-Known Strategy for Cutting Mortgage Payments

HOMEOWNERS looking to lower their monthly mortgage payments and also save some on interest may be able to do so without all the hefty fees and daunting credit requirements of refinancing.

A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers.

It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan.

Lenders typically charge an administrative fee of $150 or more for this service, though borrowers are not required to pay closing costs or submit to another credit check, because they are not asking for a new loan.

Recasting works well for those unable to qualify for refinancing amid the ever-toughening credit guidelines — perhaps because they are self-employed or have less-than-stellar credit — as well as for those with extra cash, like a year-end bonus.

“People don’t really know about it,” said Alan Rosenbaum, the founder and chief executive of the Guardhill Financial Corporation in New York, “but it’s become more common recently.”

Although the term “recasting” is often used by the mortgage industry to refer to interest-rate resets on adjustable-rate mortgages, here the interest rate and loan term stay the same.

Here’s how it might work. Let’s say that as of late December, you had just over $230,449 of principal left on a 30-year fixed-rate loan for $300,000 taken out at 7.93 percent in 1995. You have been paying just under $2,187 a month in principal and interest. But if you put in $20,000 toward that remaining principal and asked your lender to reamortize your payments over the remaining 15 years on the loan, your monthly payment would drop by $52, to around $2,135. Putting in $100,000 would save $730 a month and bring payments to $1,457.

Making extra payments toward the principal while not asking the bank to recast a loan keeps monthly payments the same and merely shortens the time it takes to pay off the loan.

There are a few caveats to recasting, however. The first is that you may need to have a large sum on hand. JPMorgan Chase, for example, charges a $150 fee and requires a minimum $5,000 payment toward the principal.

Another issue is having a lender, or loan servicer, that offers the service. And even those that do may impose restrictions. JPMorgan Chase and Bank of America exclude loans backed by the Federal Housing Administration and the Department of Veterans Affairs, and loans that were sold off and securitized may also need investor approval.

While few if any lenders advertise recasting, “they are trying to become more customer-service-oriented, and they will do it on a case-by-case basis,” Mr. Rosenbaum said. Homeowners should contact their lender’s customer service department.

Lenders, which would probably rather earn thousands of dollars in closing fees from refinancing your loan, are not obliged to recast mortgages. And certain types of mortgages, for example interest-only and adjustable-rate loans, usually aren’t eligible. The borrower will also need to have been current with all mortgage payments to qualify.

Edward Ades, the owner of Universal Mortgage in Brooklyn, says recasting can be especially useful to recent buyers, for whom it makes little financial sense to refinance but who expect to receive a tax refund or other substantial money after closing on their property, like proceeds from a relative’s sale of property, stocks or other assets.

If your interest rate is 5 percent or lower, Mr. Ades added, it may not make sense to recast a loan, because the extra cash could be put into an investment with a higher return. “At the end of the day,” he said, “I always tell people they have to do whatever makes them sleep better.”

Tuesday, January 4, 2011

Columbus Dispatch: In German Village, Maennerchor trustees OK sale of building to schools



GERMAN VILLAGE

Maennerchor trustees OK sale of building to schools

Tuesday, January 4, 2011 02:55 AM

ThisWeek Community Newspapers

The expansion of Stewart Alternative Elementary School has cleared a significant hurdle.

The Columbus Maennerchor's board of directors has approved the sale of its S.High Street property to the Columbus City Schools.

The district officially will take possession of the building when the $1.3million deal is closed, which tentatively is set for Jan. 12, said Kim Norris, spokeswoman for the district.

The district will then lease the main building back to the Maennerchor until Aug.31.

Several important legislative maneuvers remain.

The German Village and Brewery District commissions must approve the school district's plans, and the Columbus City Council must vote on vacating Pearl Street, which separates the two properties.

Meanwhile, the Maennerchor intends to move to an adjacent building, known as the Dutch House.

gseman@thisweeknews.com

Columbus Dispatch: You can now begin to use credit cards in parking meters


Parking? You can charge it

Tuesday, January 4, 2011 02:54 AM

The Columbus Dispatch

Columbus began installing 977 "smart" parking meters in high-traffic areas such as Downtown and the Short North yesterday.

The meters accept credit and debit cards as well as coins.

The city plans to replace its more than 4,000 coin-operated meters with the new meters, about 1,000 a year.


David Vega installs one of Columbus' first "smart" parking meters. Vega, who works for IPS Group Parking & Telecommunications in San Diego, was on Grandview Avenue yesterday.
Kyle Robertson Dispatch photos
David Vega installs one of Columbus' first "smart" parking meters. Vega, who works for IPS Group Parking & Telecommunications in San Diego, was on Grandview Avenue yesterday.
The parking meters being installed in Columbus accept credit and debit cards in addition to coins. They are powered by batteries that are solar-rechargeable, weather permitting.

Monday, January 3, 2011

Columbus City Councilmembers have (unanimously) elected Andrew J. Ginther President of the City Council


COLUMBUS CITY COUNCIL

MEDIA ALERT

For Immediate Release: January 3, 2011

For More Information:

John Ivanic, (614) 645-6798

COLUMBUS CITY COUNCIL ELECTS GINTHER

COUNCIL PRESIDENT

Columbus City Councilmembers have (unanimously) elected Andrew J. Ginther President of the City Council. Ginther, a councilmember since 2007, has served as the chair of Finance & Economic Development, Public Safety, and Utilities committees.

“I appreciate my colleague’s vote of confidence, and I am honored to have been chosen to lead City Council,” said Ginther. “I look forward to working with my fellow councilmembers, Mayor Coleman and community leaders to help create jobs, keep Columbus neighborhoods safe, and maintain the quality of life Columbus residents have come to expect.”

“We have a number of immediate challenges ahead of us, beginning with the appointment of two new Councilmembers and adopting a balanced budget for the coming year,” said Ginther. “I look forward to the opportunities that lie ahead, and I am ready to get to work.”

A proud graduate of Columbus City Schools, Ginther holds a Bachelor of Arts degree in political science. Before joining City Council, Ginther, spent six years on the Columbus Board of Education. A native of Columbus, he resides with his wife and daughter in Clintonville.

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