EVERETT – Investors who bought a seniors-only mobile home park for $15 million last year are now trying to flip the land to residents – and taxpayers – for as much as $33 million.
The idea is to sell individual spaces at Mariner Village to the owners of mobile homes, using public low-income housing money to subsidize some of the sales.
This would keep the 165-space park south of Paine Field from being replaced by hundreds of new homes that the park’s owners had planned for the land.
It would let investors turn a reasonable profit, and not require any of the tenants to move, said Dick Beresford, an Edmonds attorney.
Beresford bought the park in August 2006 with four other local investors and Atlantic Capital Group, a private equity firm in Baltimore.
Not developing the land could spare seniors the emotionally wrenching process of being forced to move or demolish their homes.
“Frankly, I’m not so sure we clearly thought out the effect on the people’s lives,” Beresford said.
Some residents aren’t so certain they’re being offered a good deal.
Asking for $200,000 for each mobile home space is too much for seniors living on fixed incomes.
“Personally, I think they’re asking a lot for a postage stamp-sized lot,” said Charles Brown, 71, who bought a mobile home at the park in November.
He said he was told that the new owners had no plans of converting the park when he paid $45,000 for his home. Buying the land, which he rents for $650 per month, is out of reach, he said.
“If I could come up with that much money, I’d be buying a house,” he said. “I’ve always said capitalism is great, but it has no conscience.”
A month after Brown moved in, the park owners submitted plans to the county for a subdivision with nearly 600 townhomes, cottages and apartments.
It’s a good spot to build in the state’s fastest-growing county.
Mariner Village is a quiet refuge of affordable housing, where numerous well-fed cats roam through well-tended beds of geraniums and garden gnomes.
Wedged between I-5 and Highway 99 in unincorporated Snohomish County near Everett, Mukilteo and Mill Creek, the park is surrounded by a frantic flutter of new development.
It’s this backdrop which makes Mariner Village desirable to both the 250 or so seniors who call it home, and to the investors who see its potential for building new homes.
Bob Pierce, 64, gently hushed his two peppy Shih Tzus, Kiku and Taki, as he let them out of his Ford sedan.
He and his wife, Shirley, have lived at the park for more than a decade. Their rent includes their space, water, sewer and garbage service, and use of a community clubhouse.
Mortgage payments would likely be burden for residents, many who expected to live out the rest of their retirements at the tight-knit park, Pierce said.
“I think they’re greedy,” he said. “That’s a strong word, and I don’t even know these people, but they paid $15 million and their asking for more than $30 million.”
Beresford said he believes there are ways for public agencies and private lenders to help foot the costs.
Financing tools are available for many of the residents to buy their properties and ownership of the common properties, said Beresford, who also is a director with Everett-based Mountain Pacific Bank.
He recently met with Bob Davis, executive director, of the Snohomish County Housing Authority, to ask about options for government assistance.
Davis said it may be possible to help some residents with down payments or mortgage bills.
This isn’t the first time the county housing authority has been asked to use public money to keep mobile home parks open.
Last year, it paid $9 million for The Squire and Kingsbury East, two mobile home parks in Lynnwood, from developer Mike Echelbarger.
His company bought the properties in 2006 for $6.8 million. The plan was to build homes there if the residents didn’t want to buy the land.
Beresford is taking a similar position. He has filed notices, that would allow him to evict residents by August 2008, but said he hopes a deal will be reached to preserve the park before then.
“There are lot of sleepless nights that I’ve had and I really think this could be a win-win situation,” he said.
Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.
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