Council members suggest aide has conflict with redevelopment

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BY DEENA WINTER / Lincoln Journal Star

The discussion of a Near South Neighborhood housing redevelopment turned personal Monday when City Council Republicans intimated a mayoral aide who owns an apartment building across the street might have a conflict of interest.

It occurred as the council considered developer Katie Halperin’s plans to tear down two apartment buildings and build 16 condos.

Her $2.3 million investment will be helped by $200,000 in tax increment financing, an urban renewal financing tool.

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Jon Carlson

Jon Carlson

The new red brick condos will be a marked improvement for the area, Halperin said, with two seven-unit buildings, two stand-alone buildings and a courtyard in the middle. They will have granite kitchen countertops, stainless steel appliances, bamboo flooring, some will have front porches, and all will have covered back balconies facing the courtyard. They will sell for an average of $150,000.

The condos will be less dense than current multiple apartment buildings on the block bounded by Washington Street, Garfield Street, 18th Street and 19th Street. City officials say the project will increase area home ownership.

“I think everybody knows this is a fragile neighborhood,” said Wynn Hjermstad of the Urban Development Department.

The discussion turned personal when Councilman Ken Svoboda noted new mayoral aide Jon Carlson — charged with improving the city’s core neighborhoods — owns an apartment building in the area blighted to enable tax increment financing.

Carlson owns the building at 1528 S. 19th, across the street from Halperin’s project.

Halperin assured the council Carlson had nothing to do with the project. “He has had no correspondence with me on this project whatsoever,” she said.

But Councilwoman Robin Eschliman moved to delete a section of the redevelopment agreement that said no city employee would have a direct or indirect personal interest in the project.

“I do believe we have a city employee who has a conflict of interest,” she explained.

City Attorney John Hendry disagreed, saying he didn’t believe Carlson had any interest in it, direct or otherwise. Carlson’s building was included in the area blighted in late February. He was hired on March 13.

Eschliman countered, “I have trouble with the notion that he doesn’t have any (interest),” saying he has “some sort of indirect interest in this.”

Hendry said if Carlson had been involved in meetings about the redevelopment agreement, he might have an indirect interest. However, Eschliman’s amendment passed.

Carlson later said he was surprised the issue came up, saying he called Eschliman Saturday and e-mailed the council to clarify that he’s not in the redevelopment agreement and not eligible for tax increment financing. He thought the issue was resolved, he said, because Eschliman told him, “She thought that would go a long way toward clearing up any hoopla or hullabaloo.”

The blighted area caught some eyes because it jogs eastward to encompass Carlson’s building. Hjermstad said that’s because both sides of the street are always included in blighted areas. And the blight jogs east to follow the long lot lines of Carlson’s L-shaped building.

It’s certainly possible that property values will increase in the area, but Carlson said, “I’ll pay more taxes.”

Debates over Carlson’s properties could arise again, since he owns multiple apartment buildings in the city core and a home at 20th and Washington streets. He said most people applaud him for living and working in the area he’s charged with improving — sort of a “put up or shut up” mentality.

“I certainly won’t apologize” for living in the city core, he said. “I think it’s a non-issue.”

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.