Tag:Volunteering
MCCF ’24 – End of Year Donations
Easterday Construction has always supported Marshall County Community Foundation (MCCF). This year there’s a way to increase the impact of your donation either through existing funds or starting one of your own. Consider MCCF in your end of year charitable giving.
IYKYK
For those of you unfamiliar with internet acronyms, IYKYK = If You Know, You Know. It’s generally used as a hashtag for an image with a second meaning, inside joke, or something else often hidden in plain sight. Despite having known Gary Neidig, ITAMCO and many of the Neidig family for decades, I was surprised by some of the things I learned about Gary and Robin at the MUAC (Marian University/Ancilla College) Changing Lives Scholarship Dinner at Swan Lake Resort last Thursday. I was there representing MCCF (Marshall County Community Foundation). I felt like I was out of the loop on the picture to the right. I wasn’t privy to the #iykyk meme, despite knowing Gary and Robin forever!
I’d always know the Neidigs as very family oriented. They are extremely dedicated to their family, their company and their Church. My father and I worked with Gary and his father and uncle for years doing work at the ITAMCO plant (then known as Indiana Tool and Manufacturing) and their Church, the Grace Baptist Church in Plymouth. My father and Gary’s Uncle Don did millions of dollars of work with only handshake contracts. We doubled the size of the Plymouth plant and built their world class office space. We helped them renovate and modernize the Grace Baptist Church, built the Christian School adjacent to the Church and later added the gymnasium to the school. We even did an addition to Gary and Robin’s house!
I knew that Gary had been drawn into some of the regional planning meetings through MCEDC in recent years. I served with him on the Marshall County Crossroads Committee and knew he remained involved and now chaired the next reiteration of Crossroads, One Marshall County. I served with him on the Plymouth Comprehensive Plan Committee as we updated the plan for a new decade. But at the dinner last week, I learned that there was much more he was doing behind the scenes in other areas. I was not surprised that Gary would be doing good things… He always has… I was surprised at how much there was in which I didn’t know he was involved. Much the same with Robin. I knew she was involved in the Church and school, but not the other things that came out during the award presentation.
It was a reminder to me that there are unseen layers to people all around us. Who among us hasn’t seen an award going to someone we thought was less deserving than others we knew. Maybe we shouldn’t be too hasty thinking we know everything. Gary & Robin were deserving of this award just for the things I knew they did, and then I learned there was so much more. There are no doubt others in our community involved to greater depths than many of us realize. Maybe some of those other recipients we heard about and questioned had impacts of which we weren’t aware. Maybe we weren’t in their circle of #IYKYK…
Positive Collaboration
I was pleased to be one of the Marshall County Community Foundation (MCCF) board members to attend a regional meeting of MCCF with the Community Foundation of St. Joseph County (CFSJC) and the Community Foundation of Elkhart County (CFEC). The basis of this was to foster regional collaboration on a Lilly grant that would help create more housing in our respective counties. It was great to see the groups come together and work towards a common goal. MACOG was also there, having stepped up to consider offering their services towards a Land Bank or similar vehicle to help move this forward.
I have been involved with several of these types of collaborative efforts in the past. As a Culver Chamber of Commerce (CCC) board member, I helped John Thompson and Eric Freeman create the Culver Second Century Committee. The Second Century Committee used CCC support to pull various non-profits and governmental bodies together to work towards common goals. It was successful for a brief time, creating collaboration among the various entities and was responsible for the 1998 Community Charrette and the new Comprehensive Plan that was born of the Charrette.
I was a founding member of the Marshall County Economic Development Corp. (MCEDC), which brought representatives from the county and each of the municipalities together to foster a collaborative effort towards economic growth. While chairman of MCEDC, I worked with Roger Umbaugh and Kevin Overmyer to start the County Development for the Future (CDFF) meetings. The CDFF meetings were started to bring the communities of Marshall County together to discuss challenges, successes and ways they could collaborate to learn from each other and make things better. One of the successes of CDFF was the community collaboration that brought about Marshall County Crossroads and Marshall County’s successful bid for Stellar Region designation.
I always have high hopes for these collaborative efforts. They really do bring the strengths of multiple people, agencies and entities together to create something bigger than the individual parts. There does seem to be a limited life span for them though. The Second Century Committee came together and did great things by organizing the participating groups. But then as the second generation of leaders took the reigns, it devolved into an executive committee that met and did most of the tasks themselves. They no longer had meetings to involve the underlying groups so the big initiatives went away. As the members of the exec committee burned out, less got done. They attempted to evolve into a Main Street organization, but that transition was not very successful. Main Street reorganized as Develop Culver. While Develop Culver is creating some successes, it’s not with the same larger collaboration of groups that made the Second Century Committee successful.
CDFF was extremely successful. The collaboration between communities broke down the long standing basketball rivalries and had Marshall County Communities working together. Attendees applauded the successes of their sister communities and networked after the meetings on ways to replicate those successes in the other Marshall County Communities. The other communities were all-in when Culver sought Stellar Community designation and helped make it happen. Because of that, I think CDFF was largely responsible for spawning Marshall County Crossroads and the designation of Marshall County as a Stellar Region. But a transition to a new executive director of MCEDC resulted in meetings that were more about his self-promotion and less about the collaboration. CDFF helped move us into the larger region with St. Joe and Elkhart counties when Regional Cities as launched, but at the cost of lost focus on our local communities and the tending of those new relationships. The meetings have devolved further and no longer list the accomplishments and goals of the communities. While they often bring useful information to those that attend, some communities no longer send representatives and there is no longer accountability or celebration of successes.
I was only peripherally involved with Marshall County Crossroads, serving on the larger committee and a subcommittee without having any leadership role. Crossroads took the base collaboration of CDFF and injected it with new life. It was CDFF on steroids for a while! The number of people that it brought in was amazing and the work that got done by the volunteer group was phenomenal. They accomplished the base goal of obtaining Stellar Region designation for Marshall County and set a follow up goal of continuing the collaboration and moving other issues forward as well. But the huge effort required for Stellar became difficult to sustain with a volunteer group. Crossroads has tried to spawn a new and more formal group, ONE Marshall County, but funding has been difficult and communication has deteriorated. Many of the Crossroads leaders have stepped aside and the new group is struggling to sustain the enthusiasm while also fighting some local politicians that (falsely) accuse them of trying to bypass normal government procedures. This has devolved back to infighting among communities. It’s unclear whether the group will survive Wolfe’s Dilemma.
While I continue to be supportive of collaborative efforts and think it results in outsized returns on investment, I’m coming to think that maybe they could work best as task forces in lieu of standing committees or long term organizations. So much of the initial energy and work is done by the original people starting the collaboration, but that energy and focus can become lost as the initial leaders burnout and others come in who don’t understand or agree with the core mission. Maybe they should be treated like fireworks that explode in a bright frenzy that everyone is excited about, and then everyone applauds at the end and everyone leaves happy as the smoke dissipates… Trying to sustain that frenetic energy isn’t possible and lesser results are seen as disappointing.
For this reason, I’m pleased that the three community foundations seem to be coming together for a common goal, but instead of forming a new group, they’re looking to MACOG to expand their services to sustain this. Combining the excitement and energy that bringing volunteers together generates with the infrastructure of an existing organization makes sense. This could be a new model that works. Only time will tell…
Cost of doing business
The Pointe has been all over the news and social media lately due to the City of Plymouth deeming the property unsafe to occupy. This has forced the charitable community to jump to action to help the residents of the 16 units there. On top of the general low income housing shortage in Marshall County, there is the issue that this property was renting at the very low rate of $400 per month. To the best of my knowledge, this is not a subsidized housing site.
As has been described to me, the facility is a former nursing home, so the “units” are small rooms with half baths, i.e. a sink and toilet. They are set up with common (shared) men’s and women’s showers and a community kitchen. There has been some deferred maintenance that includes roof leaks leading to other damage. Pictures from the Pilot News indicate that there is some mold/mildew, but the level and danger from that would have to be professionally assessed.
The landlord is taking it on the chin for this. Again, I know none of the background, reasons for deferred maintenance, etc. But I do think the $400/month is an unworkable business model. So if all the work that is projected to be needed there is done, there’s no way it supports itself at that rental rate. Here are some numbers to start the conversation:
- The property was purchased by the current owner for $126,000 in 2006 per county records.
- The county lists the square footage of the property at 9,840sf. That’s roughly $13/sf which is dirt cheap. Assuming it had to be financed, most commercial loans require 20% down ($25,200), can only be financed for 20yrs (unlike a home with a 30 year mortgage) and with an interest lock of only 5 years, i.e. it has to be refinanced every five years. Lets assume a 5% loan rate (low right now, high a few years back), that gives you a monthly payment of $665/month or $7,980/yr.
- The county lists the yearly taxes for this property at: $5,634
- There was a past roof repair estimate of $85,000. Apparently there has been deterioration since then and we all know what inflation has done. For discussion, lets round that up to $100,000.
- Someone shared an estimate of $10,000 for a mold assessment.
- A low estimate for mold remediation would be $100,000, which assumes $5k per unit plus common areas.
- Mold remediation will require tearing into walls, ceilings, etc. From looking at the pictures, there is a lot of repair and remediation needed without that. Let’s put $160,000 towards the units and $40,000 for the common areas. (probably low.)
- For discussion, let’s put $60,000 towards clean-up and updates to the exterior.
- This will require building permits and since it’s commercial, so architectural plans to go to State. Architect fee: $25,000
- Permit fees and such: $5,000
- Minimum of 8 months to get it done, so no rent during that period.
So lets total that up as if someone were to buy this this and puts it back the way it should. That comes to $626,000. I think this is probably a cheap number, but it’s a starting point for this discussion.
First pass: 20% down = $125,200 The remaining $580,800 financed per the above at 5% = $45,996 in loan payments, against fully rented 16 units x $400/month x 12 months = $76,800. Seems like a decent return of $30,804, but remember, right now, plunking that $626,000 into a government bond funds would pay in excess of 5%, or a yearly return of $31,300 with no risk.
But lets do a second pass the way a developer would look at this:
- Rent: 16 units x $400 each x 12 months = $76,800
- 7% vacancy and bad debt = ($5,376)
- 7% management fee = ($5,000)
- Property Taxes = ($5,634)
- Administration and leasing = ($3,000)
- Maintenance Payroll – tax, benefits, etc. = ($9,000)
- Maintenance Contracts & Supplies = ($5,000)
- Utilities (All included) = ($12,000)
- Insurance = ($13,000)
- Misc = ($1,500)
- Debt Service = (45,996)
Now we’re at a loss of $28,706 despite some of those numbers being generously on the low side. Not including the time value of money, i.e. the $125,200 down payment would earn $6,350/yr at 5%. So looking at the first three numbers in the above list, it would take a rent increase of $173/unit to get to break even. Most banks won’t finance a break even project and most developers want to make some money and have some cushion for unforeseen things. And nowhere in there was any maintenance reserve savings for when the roof needs replaced again or whatever unforeseen problem comes up.
Granted, this is an extremely simplified analysis. It doesn’t take into account the benefits of depreciation, since those are only a benefit when there is profit. Likewise it doesn’t take into account any taxes on the theoretical income. It also doesn’t take into account any escalators for inflation. There would be a large spreadsheet that a commercial developer would run this through to make their analysis.
Minimum Rent to make this begin to work would need to be $700/month, when existing tenants say they are struggling with the current $400/month. Reality is more like $800 – $900 to get to comparable rates in Plymouth that make economic sense to cover the myriad of additional things that will come up in the renovation and the probably greater management, vacancy and bad debt costs that are likely. The significant age of the building warrants a large maintenance reserve.
But lets take a step back and do really, really rough math (because I don’t know their expenses) on existing conditions assuming with the initial investment of $126,000. Assume 20% down leaves $100,800 financed. Using the 5% interest rate number in the previous scenario, that’s $665/month = $7,980 per year.
- Rent: 16 units x $400 each x 12 months = $76,800
- 7% vacancy and bad debt = ($5,376)
- 7% management fee = ($5,000)
- Property Taxes = ($5,634)
- Administration and leasing = ($3,000)
- Maintenance Payroll – tax, benefits, etc. = ($9,000)
- Maintenance Contracts & Supplies = ($5,000)
- Utilities (All included) = ($12,000)
- Insurance = ($13,000)
- Misc = ($1,500)
- Debt Service = ($7,980)
This would give us a profit of $14,944/yr. There may be other expenses I haven’t put a number to and conversely there are those that would suggest the maintenance line items should be zeroed out, since maintenance has been less than needed. In any case, this is not a gold mine as it exists today.
This is the real life example of what I’ve said for years… I would rather have a leaky roof over my head than no roof at all. Some of these residents have been living that situation, but the City has (rightly) cited safety concerns that removed their leaky roof.
the $626,000 number is a low number for the renovation, but it’s an impossible number to duplicate that building. $626,000/9,840sf = $64/sf. New construction on a facility such as this would be in excess of $200/sf. It is also questionable that a new facility such as this would meet current zoning standards, though a variance might make it possible. Then there is the issue of where to put it. Even if built on the same site, rezoning would be required along with the variance. That would prompt the same NIMBY protests that Garden Court ran into with the two sites they considered for their project. Theoretically, Garden Court’s GC Horizons project should have been less objectionable as fully functioning apartments.
Plymouth as a community has some hard decisions to make regarding housing. Complaints are rampant about facilities like The Pointe, but solutions are few. As seen with The Pointe, just shutting down the problem facility without a viable alternative creates a different crisis. As seen with Garden Court’s GC Horizons project, those that step up with a solution are often disparaged. Mayor Listenberger is making efforts, but is getting a lot of pushback. It’s tough when there’s a cry to “Do Something!“, but it’s accompanied by a chorus of “But Not That!“… no matter what “that” is…
Some things never change… That’s just part of the cost of doing business…
End of an Era
December 30, 2024
Kevin Berger
Commentary, Marshall County, Personal, Politics
government, Volunteering
With the retirement of Marshall County Commissioner, Kevin Overmyer, 2024 is the end of an era. Kevin, like is father, Glenn, served multiple terms as Marshall County Commissioner. In total, Marshall County went 46 out of the last 52 years with an Overmyer at the helm. I know there has been some ugliness over the last couple of years, but the positive impact of Kevin and his family has had on the county is undeniable.
A few years ago, a friend decided to run against Kevin. I was asked to support him in his bid to replace Kevin. My friend told me he thought Kevin’s time was up and that he could do a better job. I had to explain to him that, 1) He might be able to do as good a job… eventually…, but 2) As long as Kevin was willing to serve, his knowledge and connections were invaluable. This was a difficult position for me to take as I generally agree with the idea of term limits, the transfer of power, and the value of new blood. The problem is as long as that’s not a universal concept, the value of connections to politician at the State level are undeniable for a small rural county like ours. His respect in the larger State arena was shown when he was elected President of the Indiana Association of County Commissioners (IACC) Northwest District.
The above was demonstrated to me during my time serving on the board of MCEDC. A new project in Bourbon drew attention and support from the State. State officials attended the meeting and speeches were made. As was generally the case, Kevin was not one who wanted the spotlight, but it was turned on him by the State officials in their speeches and in the casual conversation at the reception that followed. Stories were told of Kevin’s trips to Indianapolis for meetings as well as kitchen table meetings with these officials in Kevin’s home. Kevin understood the power of these connections and that power was subtly demonstrated that day.
Kevin also understood the value of keeping Marshall County on the map. He made a false start at an economic development entity several years before MCEDC came to be. It failed due to some of the petty bickering that often occurs between municipalities, i.e. what I have referred to in the past as the lasting legacy of old basketball rivalries. Rather than dropping the initiative, he let the idea cool and simmer. Then, learning from his mistakes in the first attempt, he resurrected it in a new form, addressing the stumbling blocks of the previous attempt. This is what became MCEDC (Marshall County Economic Development Corporation), without which our county wouldn’t have made strides to create shell buildings that brought in new businesses, wouldn’t have created the partnership that brought Regional Cities dollars to Marshall County and kept us in that partnership, participating in READI and READI 2.0. When I was Chairman of MCEDC, I recognized the struggle with the municipal rivalries and with Kevin’s (and Roger Umbaugh‘s) help MCEDC created what became the quarterly County Development for the Future meetings. Those meeting broke down barriers, which helped Culver achieve Stellar Community status. That lead to Kevin co-chairing Marshall County’s Stellar aspirations and eventually achieving Stellar Region status.
Kevin also understood the need to work together and move things forward. Bureaucracies are born to grow and create barriers. Even at the County level, this is the case. Kevin had a keen eye for when the red tape was necessary and when it was just an impediment. He was someone you could call to make the right connections, make determinations between what was just policy and what was law, and help make things happen. He was adept at doing this, not only with those under his direct jurisdiction, but down stream in municipalities and upstream at the State. Kevin had a keen nose for BS and who was trying to do the right thing and who was trying to just skirt the rules.
I understand Kevin’s desire to retire and leave the stress behind. He has served Marshall County well, though that isn’t always recognized and no one is perfect. All and all, I feel he’s left a positive legacy. Which is the best any politician can do.
So, I want to end this wishing Jesse Bohannon the best and with the hope that he also can create a positive legacy in his time in office serving as commissioner. It won’t be easy and some of the rancor from the campaign will make this less than a smooth transition. As with my friend I mentioned earlier, I know those relationships can built again, but there is no shortcut for the time that requires. Kevin had a bit of a shortcut through his family name and Glenn’s years of service. Jesse will need to build that all on his own. Good luck Jesse! I hope people remember your time in office fondly 20 years from now too!
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