Feb. 17--Batesville Water and Gas Utility manager Mike Vonderheide came before the Batesville Redevelopment Commission Feb. 13 to ask for help in getting a utility-owned home rented.

Vonderheide reported the structure at 421 Boehringer St. just north of the BWGU office was purchased in mid-2008 for eventual demolition so the land could be used for new offices or a plant expansion. Twenty years could go by before it's needed, he guessed, so the Batesville Utility Service Board wants to gain income by renting it.

The manager said it contains a roomy one-bedroom apartment downstairs, with three bedrooms and a bathroom upstairs that perhaps the Red Cross could use as an emergency shelter.

The house is "in a rundown condition .... With a little work, it could be used as a rental." Between $600 and $800 already has been spent on upkeep. "Now we've found we have a bad roof leak in the back," estimated to cost $3,500 to repair.

"City property is a real bear to rent out," the manager has learned. He approached BRC, which does not have to follow city guidelines on rentals, calling for two appraisals to determine a rent rate. A tenant would pay at most the average of the two amounts after going through a bidding process.

Vonderheide explains the rule is a safeguard "so (hypothetically) the mayor doesn't rent to his brother-in-law for $10 a month."

Appraisers William Henby and Mark Hardebeck advised Vonderheide the monthly rent should be between $500 and $600 for the downstairs apartment.

"As soon as I stuck a sign in the yard, I got four or five calls per day, (but) nobody wanted to make a bid," the manager said. The consensus was the price was too high.

Vonderheide also requested the commission assign him as the person who can sign the lease and manage the property.

Member Ed Hunter asked if carpeting and appliances would need to be replaced. According to the manager, "There's going to be maintenance on this building." Utility employees "really hate (the thought of) being landlords." Hunter pointed out when the home is rented, it could take at least seven months of rent to pay for the roof expense alone. "Will you ever catch up and break even?" Vonderheide admitted the utility "could be in the hole for awhile."

BRC Secretary Dennis Harmeyer, who chaired the meeting, asked, "What is the reason we don't want to tear it down?" Vonderheide replied, "We don't think it's good stewardship of the property." Mayor Rick Fledderman noted BWGU is landlocked. The home was purchased "for future development and expansion," which he believed was good planning. "It would cost a whole lot more money to relocate the water plant than just to expand it."

The commission authorized BWGU to receive less than the market rate for rent, a minimum of $400 for the downstairs apartment and $700 for the whole house. Vonderheide will manage the property and negotiate the lease, subject to approval by the city attorney.

Member Brad Dreyer discouraged renting to persons with pets. "If they have an animal, we're going to replace carpet when they move out."

Debbie Blank can be contacted at 812-934-4343, Ext. 113; or debbie.blank@ batesvilleheraldtribune.com.

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