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September 23, 2009

From the office of Mayor George Schloegel

I am writing to you today because I want you to know I have mailed a letter to Gov. Haley Barbour this afternoon concerning the housing market in South Mississippi, and an issue that I believe could have a devastating impact on our city and our state if we do not act soon.

The City of Gulfport has worked diligently since Hurricane Katrina in 2005 to provide quality affordable housing and to give all of our citizens an opportunity to become homeowners.

Gulfport’s Department of Urban Development has helped dozens of families purchase their own home through partnerships, educational programs and financial awareness classes. Through the use of $9.2 million in grant money, the city has established the HOMELINE program, which — by the time it is through — will allow nearly 165 families to use up to $50,000 as a down payment on a new home.

The Mississippi Development Authority also has taken great steps to make housing available along the Coast since the storm.

However, we have a dangerous surplus of available housing in our area and if we are not careful, the impact of such a glut could be disastrous.

Currently, there are 2,388 homes for sale in Harrison County alone, according to MLS. That number does not include houses not on the MSL service nor does it include homes being sold by the owner. Another 1,158 homes have been withdrawn from the listing because their contracts with the MLS service had expired.

The supply for houses in every price range drastically outweighs demand and the inventory carries a heavy burden for the builders or owners of these properties.

Gov. Barbour’s Katrina 4 report, which my office received last week, also shows a heavy surplus of rental apartments in Harrison County.

I understand some may argue that because of insurance costs and the availability of “affordable” housing, a demand still exists for workforce housing. I do not agree.

We believe that grants and tax credits are motivating developers to continue seeking permits for additional construction — not market demand.

Make no mistake, the City of Gulfport and my administration is proud to partner with groups such as the Gulf Coast Renaissance Corporation, Habitat for Humanity and others, which are benevolently assisting prospective homebuyers purchase a quality home.

However, the heavy surplus of available homes calls for bold and swift action. The solvency of South Mississippi could depend on it.

Sincerely,

George Schloegel
Mayor

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Dedeaux Road widening project

The city has held numerous public meetings to discuss plans to widen Dedeaux Road. Here is a timeline on the project to date:

Dedeaux Road

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Dedeaux Road widening meeting

Councilman R.Lee Flowers will hold a community meeting on Tuesday, Sept. 29 at the Pepsi Plant to discuss plans to widen Dedeaux Road.

The meeting will be from 6-8 p.m. and everyone is invited.

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New trenching law effective today

GULFPORT — Private utility firms, developers and anyone else who digs under or cuts through a city street can now face stiff penalties for haphazardly repairing the public right-of-way.

The City Council unanimously passed the Street Trenching and Right-of-Way ordinance Tuesday night, which means it takes effect immediately.

Starting today, a city permit is required to dig under or cut through a public right-of-way. And if the road is not properly repaired within three days of completion of the project, the city can issue fines against the applicant and even revoke bond money of up to $10,000.

“Before now the city never even required a permit to dig through the road, so in many cases, a trench was dug without us ever knowing about it,” Mayor George Schloegel said. “I know we can do better than that.”

Under the new law, the applicant is required to restore grassy areas that are disturbed during the project by replanting sod or seeds.

In addition, the ordinance requires that the applicant be held responsible for the work area for two years after the project. The applicant would be required to repair any cracks or settling in the area during this time.

“This was a great step for our city,” said Council President Ricky Dombrowski. “This sort of thing was happening all the time in Gulfport, and we couldn’t allow it to continue without some measure of oversight."

A copy of the ordinance will be available on the city’s website later today.

To apply for a trenching permit, applicants should contact the Office of City Engineer at 868-5815.

 

Office of Public Information - rlafontaine@gulfport-ms.gov - Phone: 228-868-5782
P.O. Box 1780 Gulfport, MS 39502-1780 - FAX: 868-5800