Save Pleasant Ridge of Charlestown Indiana

I wrote this tome below a few years ago. It wasn't complete then, nor is it now. It is, to the best of my ability, an accurate evaluation of the goings-on. This is not warranted nor guaranteed for any purpose whatsoever. I don't know if the links are still good or not, but at one time they were or they would not be here. Use this info as you will.

Work in Process - Apologies to readers beforehand. Not all links are set yet. Although I refer to a document, often by page, I have the document but you cannot view it yet. I also have a few items needing clarification and/or additional data; so you may be a _____________ here and there. There are also a few highlites I've left in for me, so that I can return and clarify. I await response(s) from the City of Charlestown. READ THE DISCLAIMER in the right sidebar. Those items notwithstanding, I am still going to have this page up on the net. People need to read this, even if it is incomplete. If you have any comments, by all means, email me @ Steve@CountyRealty.com. Thanks for bearing with me! --Steve (11/22/2014)

On Monday 10/27/2014 I became aware of a plan sanctioned and constructed by the city government of Charlestown Indiana to eradicate a subdivision known as Pleasant Ridge (PR). They plan to accomplish by using a declaration not of eminent domain, but of "blight" which has a different standard. PR has approximately 350 dwellings in it; with a mix of single family detached homes, duplexes, tri-plexes and a few four-plex homes. The entire subdivision was built around 1946 by the Army in order to satisfy demand for munitions being built nearby. The Army either built or had built these homes using "Gunniston-style" foundations, which are wooden piers rather than slab or crawlspace construction. The Army intended these homes to be "temporary" however 70 years later, a good number of these homes look good as new. The Army, ever the model of efficiency, put approximately 350 homes on tiny lots in the subdivision and named it Pleasant Ridge.

Intrigued by the story, I contacted Charlestown Planning and Zoning via phone and asked them for help. I asked for a list of the homes involved in the Pleasant Ridge eminent domain case, and their previously friendly tone changed immediately. They were EXTREMELY DEFENSIVE and quick to correct me that it was not eminent domain, but a blight removal project. Regardless, they would not provide me with a list and referred me to the GIS for the area which shows the Pleasant Ridge neighborhood. The direction to use the GIS system was a good tip; because I downloaded the list of homes contained in Pleasant Ridge into a spreadsheet and after a little tweaking, I figured out that there are around 137 persons that have tax addresses that match their property address; making them owner occupants. So, of the 382 records 245 are non owner-occupied. This is just my estimate.

WHY AM I INTERESTED AND GETTING INVOLVED IN THIS? After all, it's not my problem, right? As a REALTOR in Jackson County (nearby, NNW from Charlestown) I follow sales and sheriff sales and have done so since 1993. Over the past 5+years, I've gotten progressively more disgusted watching banks legally foreclose for pennies on the dollar, only to sell for even less; rather than do the humane thing and work out a reduced mortgage for the suffering owner. It's a long and despicable story, but my point is, I am really mad that a government (govt) entity is now trying to bounce 350+ people out of a neighborhood; essentially just because they think they can.

On 10/30/2014, I visited and slowly toured Pleasant Ridge personally and critically, and evaluated it based on my appraiser and REALTOR background. After touring the area, I believe, and think most people would agree; that a large percentage (and I think about 90%) of these homes look fine. Most of the exteriors of the homes look good; that is the siding and roofs. Many have newer vinyl siding installed as well as newer thermal windows. The only problem is that the homes are rather tightly packed in together simply because their lot sizes are small. I've found out the average lot size is 6771 square feet; or 0.16 acre. This is nothing new - the homes have been tightly packed since the Army built them. Some however, don't look good as new and some even have become dilapidated, and even a few are burnt-out structures in need of demolition. A rather large percentage of these homes have been kept up by homeowners and are attractive.

My gut reaction is that, in my opinion, there are two things wrong with this subdivision. Even though I've not asked any REALTOR, I think the first thing "wrong" with the subdivision is that home values don't exceed $100,000 perhaps not even $80,000; these are not high priced homes. Their tax rates are probably very very low, but I've not confirmed that. The second thing "wrong" is that they are packed in close together on small lots.

After cruising Pleasant Ridge, I went to City Hall to find out the answers to a few questions. I was immediately referred upstairs to Mayor Bob Hall's office. While waiting to meet him at this impromptu moment, I met Tony Jackson of Planning and Zoning. Evidently Tony, a big burly guy like me, is aware of this page, because he said he didn't like what I'd written; and insinuated he might need to "lawyer up". Fair enough - it's good strategy. I told Tony I had just a few basic questions, but he wouldn't help me other than to give me a print copy of the materials (Blight to Bright Brochure) that (judging by the sleeves they were in) were apparently door hangers, and I assume recently distributed to the citizens of Pleasant Ridge. After waiting 15 minutes (3:35 to 3:50) apparently the Mayor was still involved in other mayoral duties. Recognizing that his time is as valuable to him as mine is to me, I got the mayors' email address; MayorBob@CityOfCharlestown.com (click and send him a message) and told his secretary I would email him my questions. And I did so. Suspecting he/his office would be silent, I sent a Certified Letter as a FOIA, requesting answers. I did receive a letter from the city letting me know they would contact me when my data would be available. As of 11/22/2014, I've received zero emails and no letter letting me know my questions/requests had been addressed; so on 11/25/2014 I sent them a second letter requesting the same thing.

My easiest and probably dead-on advice would be to follow the money. One story I read online about this said they had a "deal with developers and appraisers" and I think "oh really? What kind of "deal" are we talking about here?" Since I am talking about money, why is it supposedly cheaper to demolish those homes than it is to fix up? How much does a new roof cost? How about new vinyl siding? Or a fresh paint job? Or a few replacement windows? Is it more, or less than the cost to demolish? I could ask my friends at Window Wise and see what their opinions are. (Free plug) In any event, fixing up is less expensive than a new home. Somebody, somewhere in Charlestown has a spreadsheet that shows cost/benefit to the city's strategy - I sure hope so anyway. Some folks are surely in line to pocket a big chunk of change if "blight removal" goes forth. Who are the demolition companies? Who are the private developers? Are they not named for a reason? Are the developers related to city officials; after all Charlestown is a small community where everybody knows everybody, right?

The town has produced their Brochure (The Brochure, or Brochure) they have put online here; or for an even bigger and newer picture, look here): After reading their rosy picture of what might happen, it made me upset. I don't know why really - I have no stake in the goings-on of Charlestown; none whatsoever. However, every time I read it, and re-read it, it still gets my hackles up. I guess I just hate the idea of citizens getting pushed around by the government (govt)! It just reeks of bullying to me and I absolutely detest bullying in any form!

WHY BLIGHT AND NOT EMINENT DOMAIN? There are differing standards between these two strategies; most concerning the end-use post taking. I don't think the City could achieve a declaration of eminent domain, so they chose the blight strategy instead.

I've written quite a response to their Brochure, and I'm not going to repeat it again. I have assistance from a homeowner affected by the Blight Elimination Project who has provided me with additional documentation which, as far as I can tell, is not publicly available. If necessary, I shall identify the owner as "Owner Z" or simply "Z". Furthermore, I've included a testimony from a different owner below.

I received a disturbing phone call yesterday from the City regarding my mother in law's house. It appears that the City is resorting to bullying/intimidation to get property owners to sign on to sell. Please know your rights as a property owner. I found these three tips on an Indiana Eminent Domain website: 1. Do Not Be Intimidated 2. You Are Not Required to Speak With the Condemning Authorities & 3. Anything You Say Can Be Used Against You DO NOT BE INTIMIDATED Based upon reports we hear from property owners, we have repeatedly found that condemning authorities use an atmosphere or environment of intimidation by impressing upon property owners that eminent domain is objectionable and should be avoided. Their solution of course is an amicable transaction. I can’t emphasize enough the importance of not being intimidated. As a property owner, you have rights that can not be taken from you if you assert them. The eminent domain statutes are designed to give you the property owner protection and rights. YOU ARE NOT REQUIRED TO SPEAK WITH THE CITY You should know that you are not required to speak to the condemning authorities. If they are creating an environment of intimidation, and if they are not considering your concerns; or if you are uncertain of your rights at the time they begin discussing the acquisition with you, then you have the right to ignore them. The condemning authority always has the right to exercise the power of eminent domain. ANYTHING YOU SAY CAN BE USED AGAINST YOU Thirdly, if you do choose to speak to the condemning authority or a representative, be mindful that anything you say can be used against you as an admission if you can not reach an agreement and ultimately file a claim. I’m not saying that every statement you make will be detrimental to your position, but I do want to emphasize the severity of making statements that might be harmful to you. Similar to hiring the wrong the appraiser to evaluate your property, making the wrong statement to the condemning authority can ultimately jeopardize your chances at receiving the full amount of compensation allowed under the rules of eminent domain. Because property owners do not have the same degree of knowledge on eminent domain as the condemning authority or eminent domain attorneys do, it’s often difficult to know what should and should not be said. Because of this, you should always at least speak to eminent domain attorney prior to entering into discussions with the condemning authority.

In light of funding and assistance being provided by the Indiana Housing Community Development Authority (IHCDA), the town is taking the step of declaring the entire 350+/- home subdivision as a blighted area. The applicant(s) for funding from the IHCDA are two; the first is the City of Charlestown and the Charlestown Redevelopment Commission.

Mayor Bob Hall is the mayor of Charlestown, and is also the President of the Charlestown Redevelopment Commission (CRC). The city has created the Charlestown Department of Redevelopment (CDR) via their Ordinance 2004-R-06 on pg 72/139. The job of the CDR is to induce all owners to sell their properties to them. The CDR is the sole entity that will hold title during the BEP. Once title has been obtained, the CDR can offer the entire tract of Pleasant Ridge to developers so that they may construct an estimated 650 unit subdivision.

So..... the city has the Charlestown Redevelopment Commission (CRC); and the city created the Charlestown Department of Redevelopment. (CDR)

Towards the goals of the CDR to induce owners to sell, the City produced a brochure entitled "Pleasant Ridge Redevelopment - Reinventing a Community - Revitalizing a City - Blight to Bright" (The Brochure, or just Brochure is linked here) and therein described features and benefits of their proposal. There many claims (several needing substantiation) regarding the project put forth in the Brochure.

The Brochure also offers advice for those who rent: (numbered Four to Six in order to not get confused with the other options for owners above)

The Brochure also says that if the proposal goes through, crime will decrease, the impact of illegal drugs in schools will diminish, and the community will be safer. It also implies that police will be able to better patrol the city in general because apparently they won't be wasting resources patrolling Pleasant Ridge. It goes on to claim that redevelopment will bring over $120 million of investment into the city. Wow!

The stated goal is to get all of this accomplished; that is the buyout, demolition, new construction and relocation of 350 households and their goal of buying out, demolition, and disposal of the subdivision needs to be done by the summer of 2016. The city hopes this will be accomplished with the help of #1. IHCDA, #2. tax credits for senior housing, and #3. single family programs for affordable housing (sponsored by unknown entities). How will the city accomplish all of this? They will need, and likely get, help from a laundry list of folks.

Where will they get it? Lawyer, Appraiser, Institute for Justice (contact person____) and me.

How many owners have signed "letters of intent to sell" their homes? (email of 11/25?)

SURVEYORS #5: Speculations - Although not a stated part of this plan, it is interesting to note a large single tract of land that is 29.019 acres to the NNW and abutting the subdivision. This single tract is owned by Newburgh Ventures LLC. (Legal GT 117 29.019). On 10/11/2012 (just 2 years ago); Newburg acquired ownership from ....... are you sitting down?......... ROTH NEACE VENTURES I LLC........... WOW! Newburgh Ventures also owns another 0.998ac tract on the same southside of SR403, NNE and abutting the 29+ac tract; which would create a nice large entry from SR403 onto the superior sized plot if these two were combined. Newburgh purchased the small plot on 10/11/2012 the same date they acquired the larger tract. Interesting! Also, on the very same day; 10/11/2012;, Newburgh Ventures bought a 1.25 acre parcel which lays just to the west of the 29 ac tract.

Here's a nice bio story I found, with this included: "Penny Neace, his wife of 29 years, believes her husband's upbringing translated into his wanting to help people". This sentence identifies (for Steve Freeman) that Penny is married to John Neace. This clarifies that Penny Neace of Neace Ventures also sits on the Board of Directors of New Hope Services; see p23/139. Believe it or not, more is revealed in his biography:

So Neace "sells" to Newburg; possibly to divest; possibly to hide/obscure; his ownership interest in one of the largest tracts of land that abuts Pleasant Ridge.

Other significant landowners: Just to the west of this tract is a home with 68.33 acres that's for sale for $1,200,000 by Re/Max #201405457; owned by Harold & Betty Sexton. This property @ 8706 Highway 403 Charlestown abuts the NW quadrant of Pleasant Ridge. Other significant landowners that surround Pleasant Ridge are Donald Wells (52.8 ac est; +7.83ac;). Sexton, Wells and Newburgh Ventures would stand to profit handsomely if they could sell their properties to combine and enlarge Pleasant Ridge.