Rossville offers lots for a dollar

BY KIM LUTTRELL
Commercial-News

ROSSVILLE January 26, 2009 09:54 pm

— In a dramatic move to boost new home construction, the village board is offering lots in some village subdivi-sions for as low as one dollar.
“We have 20 plus lots for sale in two subdivisions right now,” said Mayor Terry Prillaman. “These lots range in size from four-tenths of an acre to slightly over a half-acre in size.”
“The price on these lots sell from $7.000 to $9,000,” added Prillaman.
One of the subdivisions is located on the south edge of town and the other subdivision is located on the east side of town. Prillaman said that there is also a third subdivision that he hopes will be added to the program.
“These lots all have utilities in place for any potential homebuilder,” Prillaman said.
According to Prillaman, there are some requirements on square footage as well as the homes being built according to subdivision requirements.
“Some modular homes will be allowed but they have will need to get approval of a committee of subdivision residents as well as village trustees,” explained Prillaman.
The way the program will work, according to Prillaman, is the person purchasing the lot will pay one dollar to towards the cost of the lot and the village will pay the pre-agreed price of the lot to the subdivision owner. This will give the buyer instant equity for a new home.
The buyer will then sign a redevelopment agreement with the village that he/she will build a new home on the lot within twelve months or the lot ownership will revert to the village.
“If for some reason they are unable to complete the construction in twelve months, they can ask the village for an extension,” Prillaman added. “As long as the request is reasonable and they have made progress towards construction, we wouldn’t have a problem in granting an extension.”
The village plans to pay for the lots with Tax Increment Funds. Prillaman said that this is considered development and that is an allowable use of TIF money.
Prillaman also said that the village would be a subordinate interest to the mortgage holder of the property, meaning that the mortgage holder would have primary rights in case of a default.
Todd Lee, director of business development and government relations with Vermilion Advantage, thinks it is good idea.
“I haven’t heard of this being done in Vermilion County, but it is good thinking,” said Lee. “Any way to entice new home construction and add to the tax base is a good choice.”
“It helps recruit new people to come to the area to work, to know there is an affordable place to build a home,” added Lee.
Prillaman hopes that new residents to Rossville will also lead to some new retail business in the downtown area.

IF INTERESTED
Contact the Rossville village office for more information at 748-6914.