Point/Counterpoint

Mayor, RSS, Others Respond to Concerns Voiced by Citizens That Care Group

By DARLA M. YOUNGS
ONEONTA

Editor’s Note: This article includes input from multiple individuals and resources. The first part of this story was published in “Hometown Oneonta” and “The Freeman’s Journal.” Below is the piece in its entirety.

The proposed Rehabilitation Support Services housing project at 27 Market Street has been met with strong public push-back, but city officials contend that misinformation, disinformation and fear are driving the response.

“People are not hearing the facts,” said City of Oneonta Mayor Mark Drnek in an e-mail on Sunday, March 10. “They’re distrustful and they are afraid.”

So distrustful and afraid, in fact, that a group calling themselves Citizens That Care held their own Town Hall meeting on March 2, in response to not feeling heard by Common Council members and Mayor Drnek at a city-sponsored Town Hall just days before on February 27.

“The town hall was not prompted by any particular details about the project itself, but rather due to the need for people to share their reactions and thoughts about the project who had, up to that point, not felt as though there was sufficient time for public comment,” explained CTC Town Hall organizer Dan Buttermann, an Eighth Ward resident. “I was approached by several people who attended the Tuesday night presentation at the Foothills and were upset that there was little time for public comment or questions, so I offered to arrange a town hall specifically for the opportunity for community members to share their thoughts and feelings for each other to hear.”

Luisa Montanti, who organized the CTC Town Hall along with Buttermann, wrote in a letter to the editor published on March 7: “We, the concerned citizens of greater Oneonta, are frustrated by the apparent lack of transparency in the administration of our City Hall government. Dear Mayor Drnek and city staff, your behaviors of ignoring us are clear and your unwillingness to listen and act accordingly is causing this divide in our city.”

Mayor Drnek Responds

This weekend, Mayor Drnek addressed the major concerns voiced by CTC organizers and attendees of the March 10 CTC Town Hall. Those concerns, and Drnek’s answers, are as follows.

Concern Number One: Parking availability downtown if such a project proceeded, and considering the demolition of the parking garage.

Drnek: There is currently parking for all who use our downtown, although it is not as convenient as it once was. We are continuing to seek additional parking opportunities and connectivity options to outlying lots. The 27 Market Street proposal includes 30 new parking spaces, making for a neutral impact to our parking availabilities.

Concern Number Two: Who will be served by the new housing? The concern is that RSS has said the project would serve Oneonta and Otsego, but that RSS may grant applications to individuals from other areas and local people in need may miss out.

Drnek: This is all about the “lease-up.” RSS has a long and successful history as a developer and has the experience required to make certain that those who are local are well informed of the opportunity. Our community has more than enough identified need to fill the building many times over. 

As to who would be served, more than one fifth of Oneonta’s residents are struggling at or below the poverty line. Many are spending half of their income or more on rent and utilities. That is a path to failure. It ensures a lifetime lack of ability to move beyond a paycheck-to-paycheck existence. The irony is that this is the predicament of many who we celebrated only a few years ago as essential workers, people who typically make in the high $20s or low-to-mid $30s as a salary. 

If RSS qualifies for HCR (Homes for Community Renewal) funding, hence the pace of considerations on our part, the state would provide a bridge between the “market rate” and what has always institutionally been the accepted standard of 30 percent of salary being the appropriate amount for rent and utilities.

In other words, if an apartment lists for $1,100.00, but a “right-sized rent” would be $800.00, the state would provide the landlord with the difference. It’s a little more complicated than that, but not much. The subsidized component is approximately three quarters of the units.

The remaining quarter [of the units] would be for people for whom RSS provides support services. These are people in recovery, whether from drugs, alcohol or mental health issues. They are NOT the actively engaged drug abuser or the dangerously unstable. And these people have been living happily and successfully among us for years, in homes that RSS provides throughout the city. The Oneonta Bagel Shop is just one example of how integrated into our community and how unthreatening these folks are.  

Concern Number Three: Taxation questions came up regarding a PILOT program and non-profit status of RSS. The concern is the tax burden increasing but no added contributors to it from a non-profit.

Drnek: A PILOT (Payment In Lieu of Taxes) will be negotiated. The terms are unclear at this stage. But, a PILOT will provide a level of relief to taxpayers that will grow each year, in many areas. It will not add to the tax burden.  

Concern Number Four: Are other housing options available? This question came up regarding the kinds of housing units available in the city. The new Dietz Street apartments have a number of low income qualifying units available and the concern was whether there would be enough market-rate units available to serve that need as well.

Drnek: We are currently working with developers on two projects, both in the early stages of negotiation, for market-rate and senior housing. There is also a paradigm shift in the college housing market that has been spurred by a negative enrollment trend and its impact on off-campus demand. That conversion to market-rate housing rental and sale will be slow, but it is inevitable.

Concern Number Five: A few people spoke about the process of review for this application plus the general view of downtown Oneonta development. These comments focused on the transparency and due diligence by the city for the RSS project plus others.

Drnek: This is off-base. We are following the specific guidelines and timelines that are, and have been, in place for a project such as this. As to transparency…In our first meeting with RSS, I made it clear that this was a mandate of mine. The city had preliminary conversations that laid out the expectation and RSS did their research and due diligence. This happened over the course of several months. 

Once both parties agreed that it made mutual sense to move forward, RSS, to its credit, assigned Christine Nealon, their director of strategic partnerships, to the communications effort. 
She presented to the Common Council several times, had large and small in-person meetings with residents, and Zoom meetings with any and all interested parties. This high-level connection has been going on for months. There isn’t a question that [Christine] won’t answer.

Concern Number Six: A few people spoke about the concern for people in recovery living near so many bars.

Drnek: That’s a red-herring. People in recovery are scattered all around Oneonta, and very walkable to the bars. But, of course, if someone was inclined to upend their sobriety, they are more likely to find a more clandestine place than a neighborhood bar. In addition, [RSS] support staff will be living and working on-premises with folks who become tenants.   

Nealon said in an e-mail on March 7 that, of the 50 planned units, 15 will be set aside for individuals choosing to work with RSS on their physical and mental health goals.

“Some of those 15 individuals may have a history of using addictive substances but others may, for example, be dealing with a serious bout of depression. These apartments are not rehab units in the same way someone who needed in-patient drug treatment would go to rehab,” Nealon wrote.

Concern Number Seven: Are there other locations for this kind of project?  Were any other sites considered outside the city?

Drnek: The city’s downtown is by far the best place for a building that features a “maker space” on its first floor, and…apartments that are affordable to those who work as staff in the city and in the businesses that comprise it. With more discretionary money available to them (see explanation above) these residents are more likely, not less likely, to positively impact our downtown businesses. 

Concern Number Eight: There were comments focused on the challenges downtown businesses face, but there seems to be no support to address those, whereas projects like RSS seem to get much more support.

I would absolutely argue that creating more density in our downtown, and more foot traffic because of it, IS supporting our businesses. And, FYI, see our PowerPoint presentation at www.Oneonta.ny.us, which details the hundreds of thousands of dollars the city has provided as direct and indirect support to those businesses.  

Concern Number Nine: City finances were brought up regarding concern for the City of Oneonta’s ability to operate in the next few years.

Drnek: Yes… That’s [an issue]. And one more compelling reason for us to ensure that we benefit not just from the property’s sale, but from the employment of local labor in construction, decoration, furnishings, and maintenance, as well as from the water and sewer fees that will be perpetual. Also, the sales tax generated by dozens more year-round shoppers is not insignificant. 

Concern Number Ten: RSS was contacted directly by Mayor Drnek. He never asked the Oneonta residents if they would be in favor, yet there is a vast majority opposed to it. We have petitioned over 200 signatures to stop the sale to RSS that have been given to the city at Common Council meetings. We need to slow down the project. We cannot change Oneonta forever because RSS has a deadline for March 31.

Drnek: The Comprehensive Plan for the City of Oneonta, which was voted upon and approved by the Common Council, makes it clear that the solving of our housing issues should be the priority for development in the area designated as “downtown,” as well as in the address of housing stock in the city as a whole. It is the mayor’s job to provide the leadership that brings the city closer to attainment of the goals outlined in the Comprehensive Plan. That includes the pursuit of housing—market rate, senior, workforce, affordable, and supportive housing. The need for each is well documented. 

While we are currently pursuing market-rate and senior housing, those conversations are in the early stages. As with the success we’ve had in enlisting and securing the interest of a developer for affordable housing, we will share details of other negotiations when appropriate. And just as soon as we are able to. Not one minute later. That’s exactly the description of the RSS negotiation.

Providing options for the community’s progress is the mayor’s role. If the community has a reasonable, fact-based objection, the Common Council members that they elected are their representation in that decision. Re: “We cannot change Oneonta forever…” I would add that changing Oneonta forever IS the plan. We can’t continue on our current trajectory. Also, there are more than 13,000 residents who did not sign the petition. 

Concern Number Eleven: No local developer was ever asked to purchase the parcel for development. According to Greg Mattice, the city had planned this all along. An article in the March 5 “Daily Star” reads:

“Mattice said that the city would not have purchased the parcel and paid to demolish the building if private developers on their own wanted to develop it at their expense—the city wanted a say in how the downtown parcel is redeveloped. ‘It would make no sense, in my opinion, for the city to purchase the parcel, demolish the building and then sell it to the highest bidder with no idea what the buyer intends to do with it,” he said. “By coordinating with a developer such as RSS, the city can ensure the development fits within the context of the city’s overall vision for downtown.’”

Drnek: The first half of that sentence is incorrect. We worked side-by-side with a respected local developer. At the process’ end, funding couldn’t be secured for the project. The [paragraph from the Star] is absolutely correct. The city purchased 27 Market Street with the intention of its demolishment and development. I looked at my first two State of the City speeches, and I referenced the city’s intent to develop that parcel in each. The approvals for purchase and demolition of the property were motions that were brought to council and publicly and thoroughly discussed. Those meeting are on-line and can be attended by the public. See above to understand why the city wouldn’t be inclined to invest hundreds of thousands of taxpayer dollars in the creation of a 49-space parking lot, and why development that addresses housing was (and is) the logical goal.

Concern Number Twelve: There was never a Town Hall to discuss the sale of that particular property to RSS… It’s illegal to sell city property without putting it out to bid. 

Drnek: We have had several Common Council meetings in which residents who were opposed to the sale made their opinions very clear. We followed with a Town Hall designed to provide a shared history of Oneonta’s successes and failures over the years, as well as what has been done, and would/can be done to change our trajectory so that it more closely replicates that of 70 years ago. The questions that were asked were answered in that venue, and the questions that weren’t addressed have been answered online (see the city website). There was a community meeting and a Public Hearing at Hartwick College. Several other meetings are scheduled for this week. Again, the recourse for those who are not supportive of the project is the same for those who are advocates—your council member.

From City Administrator Greg Mattice: The statement, “It’s illegal to sell city property without putting it out to bid,” is false. Both Chip Klugo and RSS are regional developers with an existing local presence. We still haven’t heard from another developer, local or otherwise, who has expressed interest in developing a mixed-use building at 27 Market Street that would advance the goals outlined in the Comprehensive Plan. I’ve heard two individuals offer to purchase the parcel without any plan to develop it. One of those individuals, as part of a group, attempted to purchase the parcel from the previous owner, before the city purchased it, but was unsuccessful in doing so.

Concern Number Thirteen: There are a few other sites that should be under consideration and have been mentioned to RSS and the mayor—the Town of Oneonta on Oneida Street, the Town of Hartwick, and county-owned land near Cooperstown. 

Drnek: This misses the point. There is a reason we are looking to develop in the city. A vibrant city is informed by the character and the energy of its neighborhoods. The success of our construction on 27 Market Street will open the door to consideration by those developers currently on the fence. As I’ve pointed out previously, an entertainment- and engagement-oriented Market Street, with unobstructed views and easy access to Neahwa Park, and a “back yard” of a reimagined Water Street with cafe dining and more, will provide a compelling rationale for developers of ALL types of housing to invest in Oneonta. Our economy desperately needs this. 

Late-breaking Offer

There has been an informal, all-cash offer recently for the 27 Market Street property, made by Brian Shaughnessy, who owns real estate on Market Street. When asked if the RSS project is off the table because of this, Mayor Drnek said no.

“A cash purchase without a housing project is just land speculation. The city has an identified need for housing—of all sorts. It’s referenced clearly in the Common Council-approved “Comprehensive Plan,” which prioritizes the address of the issue, he said.

Drnek also pointed out that city officials believe the enhancement of the city’s Market Street Entertainment District— with a maker space and a population of new neighbors—will be an attractive lure to other developers.

“With the amazing views of the park, potentially easy access to the planned Jerry Jeff Walker performance stage, Damaschke Field, next door neighbors including the Foothills Performing Arts and Civic Center and a reimagined Stella Luna’s, as well as a state-of-the-art transit hub… I would not bet against an appetite for market-rate housing among developers,” Drnek said.

Back Room Deals?

Other criticisms of City of Oneonta officials expressed by members of the CTC include the increased number of police calls at the Dietz Street Lofts, which they consider comparable housing to that proposed by RSS, and the appointment of Don Mathisen to fill the Eighth Ward Common Council vacancy when Emily Falco resigned last month due to the increased demands of a new job.

Detractors contend that police calls to Dietz Street are a harbinger of things to come on Market Street, but statistics provided by Police Chief Witzenburg do not seem to support this. Calls for service on Dietz Street only increased by 39 from the prior year, even after the addition of 64 housing units—the equivalent of about a block of additional housing, Witzenburg reported. Of the center city streets, Elm had the most calls, with 167.

Rumors circulated with regard to Mathisen’s appointment have hinted at “back room deals” and have gone so far as to say Mathisen was appointed by Drnek with the caveat that he is expected to vote “yes” on the RSS project.

“…So far, I have not been offered or involved in any deals at all—front room, back room or bar room,” Mathisen said in response in an e-mail last Friday, March 8. “As a council member I’ve only attended one meeting. I’m very new at this.

“The mayor asked, if he nominated me, would I accept. This came out of the blue. I never thought about or wanted to be a government official,” Mathisen continued. “After thinking about it, I called the mayor and said I would accept. A few days later, we met in the mayor’s office. We spoke generally about the duties of the office. He asked me what I thought of RSS. I said the same thing I wrote in my column for ‘The Daily Star’— if it’s the only offer on the table, why not take it. Something is better than nothing.

“The next thing that the mayor said is important and has been missing from the things that have been speculated about,” Mathisen explained. “Mark Drnek said, ‘All council members are free and, in fact, must vote their conscience.’ Drnek never told me how to vote.”

Of the offer from Shaughnessy, Mathisen said, “There is now an additional offer for 27 Market Street for the Common Council to consider. A higher, all cash offer. RSS’s business plan relies on government grants and other funding that may or may not materialize. Shaughnessy’s offer appears to be that of a private entrepreneur putting up and risking his own money.”

Regarding RSS, Mathisen said, “I believe the Council should consider all the offers being made for 27 Market Street, encourage more offers, examine the possible impacts of the offers we have, study the finances of the people and institutions making proposals, and then the Council should do what collectively they believe is best for the city.”

As for the city’s financial difficulties, Mathisen said, “The municipal government is spending more than a million dollars a year above what it is taking in. That’s unsustainable. And that is the issue that I would like to focus on. I have never spent more money than I have. I don’t believe the city should, either.”

RSS Weighs In

In response to public concerns about the location of the proposed housing unit, its proximity to downtown, and worries about potential increases in crime, overdose, drug use, and theft, RSS Director of Strategic Partnerships Christine Nealon spoke in support of the city’s vision and the benefits of right-sizing rents.

“I continue to see concerned citizens making a connection between their negative stereotypes of the behavior people living in affordable housing have, as opposed to the incredibly positive impact right-sizing rents can have for people building their careers and individual wealth-building strategies. Affordable housing would also attract new business to the area,” Nealon wrote in an e-mail on March 5.

“RSS has built many projects similar in nature to this one; however, we do not track specific data about the overall impact to the community’s crime rates, etc.,” Nealon continued. “It is important to note that we have an enormous amount of compliance and oversight by both state and federal institutions such that, if our track record was negative, we would not be allowed to expand into areas of need.”

Nealon directed Iron String Press to a study released by the University of California, Irvine School of Social Ecology Livable Cities Lab: Affordable housing decreases crime, increases property values | School of Social Ecology (uci.edu). The study looked at data three years before and three years after affordable developments moved into neighborhoods, and found they reduce most types of crime, especially violent crime, such as robbery and assault. 

“I did find this study which not only outlines the positive impact of affordable housing on crime rates and property values but also shows that it required an entire study out of a university to capture the many intersections of data,” Nealon wrote.

“One of the long-standing historical challenges to affordable housing in local communities is the fear by local residents that crime will go up and housing values will go down,” said George Tita—LCL director and professor of criminology, law and society as well as urban planning and public policy—in an article published by Mimi Ko Cruz in June 2022.

Additionally, Nealon said that she would argue that a new building that creates more light, improved infrastructure, and increased density would reduce the number of overdoses or people sleeping in business doorways in and around 27 Market Street, just based on where these folks feel it is safe to ‘hide’ in plain sight. 

“My wish is for the few concerned citizens to see RSS as a solution to crime and overdoses rather than blaming us or our actively engaged clients for the problem in the first place,” Nealon said.

Other Perspectives

An individual opposed to the RSS project reached out to Iron String Press on Monday, March 11, stating that both Otsego Mental Health and Oneonta’s Family Services Association are against these types of projects. FSA Executive Director Patricia Leonard declined to comment in a phone call later that day. Liza Butts, Single Point of Access Clinical Coordinator for Otsego County Community Services, did respond but wished to remain off the record.

The same individual who told Iron String Press that FSA and Otsego County mental health officials are against projects like the RSS housing proposal also contends that the homeless in Oneonta are not from our area, but rather are bussed into Otsego County from Rochester and Broome County.

“This is something I hear in every community I work in, yet I have never seen or heard this actually happening,” responded Nealon. “Also, knowing how county systems work, it makes me question the reality of bussing homeless people in from other communities, as it would be easily tracked.

“RSS does not have a homeless shelter, so we are not capturing this information, however if this was true, I would encourage the leaders of Otsego County to talk with their peers from Rochester and Broome County and create a collaborative plan rather than setting those individuals up for further homelessness. The average person may not realize that counties do work together and have standing meetings to discuss issues throughout the state,” Nealon continued.

“What is important for people to know about 27 Market Street is that we are not setting aside 15 units for or moving actively homeless people into the building if we develop it. We would be moving individuals who once had a history of homelessness into the 15 units, but who have since achieved housing stability and will be successful in their own apartment,” Nealon said.

Otsego County Board of Representatives member and Seventh Ward resident Jill Basile, representing District No. 14, Oneonta Wards Seven and Eight, believes the RSS project is necessary.

“The proposed RSS project in downtown Oneonta is one that is definitely needed. As a member of the Human Services Committee on the Otsego County Board, we oversee the Department of Social Services, Mental Health and Addiction Recovery Services. We hear every day about people’s need for housing, mental-health support and overcoming addictions,” Basile wrote in an e-mail on Tuesday, March 12.

“My reasons for supporting this project include the illustrated need for more low-income housing, which would allow entry-level hires to live in Oneonta, where a good percentage of jobs are available. The project will allow low-income families and individuals to have housing, as opposed to being unsheltered, which costs the county a significant amount of money. The cost of housing the homeless is not just paying for housing (hotels, contracts with Opportunities for Otsego, etc.)—it is paying for more staff to work with this population. The cost of transportation comes to mind. This location also allows people to be close to other services they may need: mental health, addiction recovery services and DSS support,” Basile said.

The final point made by Mayor Drnek in response to concerns raised by CTC organizers and those who spoke out against the RSS project proposal at the CTC Town Hall had to do with New York State Governor Kathy Hochul’s Executive Order 30, signed in July 2023.

Executive Order 30 created the Pro-Housing Community Program—an innovative policy designed to reward local governments that are working hard to address New York’s housing crisis. Localities that achieve the “Pro-Housing Communities” designation will receive priority in their applications for key discretionary funding programs, including the Downtown Revitalization Initiative, the NY Forward program, the Regional Council Capital Fund, capital projects from the Market New York program, the New York Main Street program, the Long Island Investment Fund, the Mid-Hudson Momentum Fund, and the Public Transportation Modernization Enhancement Program.

“Governor Hochul has made it clear that considerations of funding for any number of projects will be much influenced by a municipality’s certification as a “Pro-Housing Community.” I hate to think of the ramifications of our turning away a 50+ unit housing project on the state’s perception of Oneonta,” Drnek said. 

Regardless of where City of Oneonta residents stand on the 27 Market Street issue—which is still far from being decided—it is to be hoped they arrived at those opinions as a result of research over rumor, and separating fact from fiction. The information does exist to help citizens get informed and make that assessment on their own.