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Updated: 9:21 p.m. Tuesday, March 31, 2009 | Posted: 5:29 p.m. Tuesday, March 31, 2009
EL PASO, Texas —
"We just wanted to make sure the city and local officials knew what's coming to Ft. Bliss as a result of BRAC, grow the Army, and other decisions," said Ft. Bliss Garrison Commander Col. Edward Manning.
But it is not just a simple issue of supply and demand. Even though the demand is there to build the apartments, lending for the construction of those complexes is tight right now, so many developers are hesitant to build.
"Anything we can do, the credit markets are punitive today, so anything we can do today to help markets work is good for us, good for the city, good for the soldiers," said Matt Bohannon of Bohannon Development.
That's why Bohannon was in favor of a deal the city made Tuesday to give builders an incentive to build apartment complexes now.
Under the plan, if a developer builds at least 250 units, they will get 25 percent back of various fees the city charges for that project. The number goes up to 50, 75, and even 100 percent for larger projects. And the fee reimbursements would end at the end of 2013, when all troops should be here.
"I think the outcome is favorable, I think it says a lot that the city is being involved, the city is going to be proactive in meeting the demands of these soldiers coming in," Bohannon told KFOX.
But some on City Council believed this all came up too quickly, and that other solutions to the problem of lack of housing could have been explored.
City Rep. Beto O'Rourke said he never heard from a developer that the incentives plan would change anything. He contends those that were going to build before, now they just got free incentives, while those that had no plans to build will still not come into the market.
O'Rourke was one of three representatives who voted against the incentives.
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