Submitted by
Name: Warren A. Auxier
Name: Warren A. Auxier
Comments:
Perhaps Mr. Kellems can address the transparency issues with the RDA Board’s approval process of the Madison Coal Property Housing Project. Mr. Kellems is Jefferson County’s representative on the RDA Board.
The READI Regional Development Authority (RDA) scored the application the City of Madison submitted before the July 12, 2024, deadline for submissions, and selected it to receive two million dollars in READI funds. The application stated the project was for 65 market rate and low-income units with an average monthly rent of $1,000.00. The total cost of the project was stated to be 35 million dollars, 30 million from the developer and 5 million in public funds.
Based on the financial information provided in the application the project was not financially feasible. The proposed monthly rental income of $1,000.00 per unit would provide a maximum of 65 thousand dollars. This amount less than one third of the amount required to support the debt service or generate a minimal return on a 30 million investment. The application should have been a nonstarter.
It appears the City of Madison and/or the developer also concluded the project they submitted was not financially feasible because, after the scoring and list of projects to advance were approved, they submitted a “Project Addendum” to RDA.
The project described in the addendum is drastically different from the project the RDA scored. It was changed to new market-rate, Class-A building with 52 1BR and 2BR apartments, with an extraordinary amenity package consisting of a work-from-home lounge, an indoor/outdoor resident cafe, indoor bike storage, pet spa, and riverfront plaza. The addendum states the residents will have an average income of $100,000 and the total project cost is now 12.7 million dollars.
The City of Madison has been clear, it is their intention to use the 2 million in READI funds for the project described in the “Project Addendum”, not the project the RDA based their scoring on. I have carefully reviewed all of the RDA’s board minutes for meetings held in 2024 and 2025. There is no record in the minutes of the RDA even considering the “Project Addendum” let alone approving the use of the 2 million in READI funds for the project described in the addendum.
It is obvious the scoring for Madison Coal Property Housing project would have been much lower for 12.7-million-dollar project requesting 2 million in READI funds than the 35-million-dollar project requesting 2 million. In addition, the project changed from providing market rate and low-income housing to one providing luxury apartments for high income residents. I understand increasing housing is a goal for the use of READI funds. However, I have difficulty accepting using READI funds to increase housing by building luxury apartments in a floodplain for high income residents is a proper goal for the use of the funds.
In addition, the practice of allowing an applicant to submit a financially unfeasible project, so it will score higher, then allowing the applicant to drastically change the scope and nature of project after it is scored appears to be detrimental to the other applicants, and the overall READI initiative.
Perhaps Mr. Kellems can address the transparency issues with the RDA Board’s approval process of the Madison Coal Property Housing Project. Mr. Kellems is Jefferson County’s representative on the RDA Board.
The READI Regional Development Authority (RDA) scored the application the City of Madison submitted before the July 12, 2024, deadline for submissions, and selected it to receive two million dollars in READI funds. The application stated the project was for 65 market rate and low-income units with an average monthly rent of $1,000.00. The total cost of the project was stated to be 35 million dollars, 30 million from the developer and 5 million in public funds.
Based on the financial information provided in the application the project was not financially feasible. The proposed monthly rental income of $1,000.00 per unit would provide a maximum of 65 thousand dollars. This amount less than one third of the amount required to support the debt service or generate a minimal return on a 30 million investment. The application should have been a nonstarter.
It appears the City of Madison and/or the developer also concluded the project they submitted was not financially feasible because, after the scoring and list of projects to advance were approved, they submitted a “Project Addendum” to RDA.
The project described in the addendum is drastically different from the project the RDA scored. It was changed to new market-rate, Class-A building with 52 1BR and 2BR apartments, with an extraordinary amenity package consisting of a work-from-home lounge, an indoor/outdoor resident cafe, indoor bike storage, pet spa, and riverfront plaza. The addendum states the residents will have an average income of $100,000 and the total project cost is now 12.7 million dollars.
The City of Madison has been clear, it is their intention to use the 2 million in READI funds for the project described in the “Project Addendum”, not the project the RDA based their scoring on. I have carefully reviewed all of the RDA’s board minutes for meetings held in 2024 and 2025. There is no record in the minutes of the RDA even considering the “Project Addendum” let alone approving the use of the 2 million in READI funds for the project described in the addendum.
It is obvious the scoring for Madison Coal Property Housing project would have been much lower for 12.7-million-dollar project requesting 2 million in READI funds than the 35-million-dollar project requesting 2 million. In addition, the project changed from providing market rate and low-income housing to one providing luxury apartments for high income residents. I understand increasing housing is a goal for the use of READI funds. However, I have difficulty accepting using READI funds to increase housing by building luxury apartments in a floodplain for high income residents is a proper goal for the use of the funds.
In addition, the practice of allowing an applicant to submit a financially unfeasible project, so it will score higher, then allowing the applicant to drastically change the scope and nature of project after it is scored appears to be detrimental to the other applicants, and the overall READI initiative.
Added: September 5, 2025 08:53:53 PM
Name: Love a good stand up comedy routine
From: Madison
Mr. Warren’s post, as usual, was very informational but I must say the winner today is the bit about jail inmate photos! Thank you “connoisseur of online jail inmate rosters”. I really enjoyed your writing and hope to read more from you in the future.