FARMINGTON — Abby Lane Apartments owner Phil Hawn was upset when he learned a consultant had asked the Farmington City Council to give its blessings for a development company’s plan to redevelop his property.

Rob McClary, representing RCH Development Inc., based in Jackson, told the council that Chad Hartle, owner of RCH, had a plan to purchase the Abby Lane Apartments complex and redevelop it into low-income or senior citizen housing.

Hawn said no one from RCH Development has ever approached him about buying his apartment complex. He also said his tenants are concerned about their future based on statements McClary made at the council meeting. During that meeting McClary said all tenants would have to leave and then apply and complete a thorough background check to be considered for living in the apartments in the future.

“We have never heard of McClary. We have never heard of RCH. I have no intention to sell. Why would I sell?” Hawn said.

“No one has made me an offer. No one has asked me what I want for it. Some guy in town asked if we wanted to sell our apartments, and I said ‘well, if the price is right,’” Hawn said Monday morning.

Hawn said if he did sell, he would be upfront with his tenants and see that their best interests were satisfied. But, he said he has no intention to sell Abby Lane Apartments at this time.

During the council meeting, McClary said the apartments had fallen into a state of disrepair and were only about “50 percent occupied” at this time. Hawn disputed that claim, saying the units have about 85 percent occupancy at this time, despite recent problems with a manager and some evictions.

“We had to fire our last manager because he let some people in,” Hawn said. “The apartments are in good repair. We’re (rehabbing) the ones which were damaged by these people.”

Hawn said the rehabbing and future management will be handled by Professional Property Management, owned and operated by Patsy Weddle. He added that he would be sending a letter to Weddle to be forwarded to the city council making clear his position on the rumored buyout and plans of RCH Development Inc.

“He has no right to raise money on our property,” Hawn said of McClary and RCH seeking state or federal tax credits on a project utilizing property they do not own, or do not have under contract to purchase.

Hawn said he and his wife, Kathleen, purchased Abby Lane Apartments about four years ago. The couple live several states away and rely on a local manager to oversee day-to-day operations of the units. From this point on, he said, that management will be the duty of PPM and Weddle.

McClary had been at last week’s council work session to ask for a letter of endorsement for RCH Development Inc. to use while seeking Missouri Housing Development Commission, or MHDC, tax credits. Tax credits provide tax breaks for developers providing low-income housing.

Oftentimes, instead of utilizing the tax breaks over their intended time span, developers sell the tax credits at a reduced rate to large corporations at a fraction of their value to generate capital at the start of a project. The developer then uses the cash to fund a housing project and turn a profit. The large corporation then uses the tax credits — as an example they might have bought $100,000 in tax credits for $80,000 — to offset future tax liability.

In this case McClary was asking the city council to endorse RCH Development Inc.’s  plan to purchase the Abbey Lane Apartments off Old Fredericktown Road and rehab them before reopening for low-income or subsidized housing. The owner of RCH, Chad Hartle of Jackson, has completed similar projects throughout Southeast Missouri and owns the apartment complex next door to Abbey Lane.

McClary told the council that Hartle is very adamant in being selective of tenants he allows to occupy his apartment complexes. He said the developer required three reference checks — criminal, financial and past housing — and rejects anyone who fails any of the three. McClary told the council that Abby Lane Apartments had fallen into a state of disrepair and were only about 50 percent occupied. Hawn tells a different story about the condition of the apartment complex.

McClary said last week the project would cost about $2.5 million to complete and would include changing the exterior covering, and remodeling the interiors of all units. The current tenants would have to move, with all new tenants required to meet Hartel’s application process — even those people living in the apartment complex.

Hawn said upon learning of McClary’s plans the current tenants living in the apartments were upset and concerned. He said he was outraged that someone would show up at a city council meeting and unveil a plan to purchase his property and evict his tenants without first going through the proper steps to even make an offer to buy the property.

“We are not selling. We are not evicting anybody. We’re very happy with our tenants,” Hawn said Monday morning.

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