A group of developers from Cincinnatti plans to turn the former Roberts Hotel in downtown Muncie, IN into an 83 apartment complex for senior citizens. A recent article in the Muncie Star-Press announced that the IN Housing Authority has granted $1.33 million dollars in tax credits and an additional $250,000 in other financing for this project. According to the article, the developers claimed this was a major step in financing the $16 million dollar project. As of now, neither the city or county appears to have committed any additional funds.

A couple of years ago, the owner at that time decided to convert the hotel into up-scale condos. After nearly a year of interior destruction and few takers, the project died in a wave of litigation. The losses, however, were to the investors and to the deposits of a few potential condo buyers. I don't believe any public money was involved.

In a way it seems like "deja vu all over again" only this time there will be a significant investment of public funds. I can't help wondering if it's a multi-million dollar boondoggle or if it will be an economic boost to downtown Muncie, IN. I suspect the former, and here's why. The developers say they’re going to create 83 apartments for sr. citizens yet the low-maintenance segment of the real estate market is one of our poorest performers. By low maintenance. I mean condos, villas, duplexes and patio homes that should be very attractive to our aging population. As of today there are 48 such units for sale in Del. Co. ranging from a modest $64,500 up to a high of $239,900 with 16 units for sale in Halteman Villas alone. Sales over the past 7 years have been flat with the exception of the height of our building boom in 2006 & 2007 and based on average sales per year, there is currently over a 12 month inventory, compared to total residential market inventory of just over 7 months. I have no way of checking on occupancy in existing apartment homes (not the nursing or assisted living portions) like Westminster Village and Ash Grove but I sense they are not at capacity.

I think there are several factors contributing to this. One is that people are healthy longer than ever before and are able to stay in their existing homes. Second, we have a large supply of one-story and ranch-style homes that are easier for older people to live in and maintain. Third, a high percentage of the folks in this category have their homes paid for and are hesitant to move to a product where there are rents and maintenance fees that they don’t control.

I think all these factors apply to the proposed Roberts project. In addition, I’ve heard no plans for any kind of sheltered parking and I can’t envision a lot of older folks battling inclement weather to get to their cars and then having to clear them of snow and or ice once they get there. Many will go to warm places in the winter, but many do not and we can have nasty weather in all seasons. Garages are not just a convenience, they also protect from weather deterioration and damage to the vehicles. I hope someone is looking at this project from the taxpayer’s standpoint as there seems to be a lot of public money involved.