Nearly a year later, Valpo housing project still on hold

Lawsuit, changes in panel members follow BZA vote last June

The Valparaiso Board of Zoning Appeals faced votes on two proposals for affordable housing projects last June, both backed by Project Neighbors.

Board member Byron Martin recused himself from both matters because he is on the board of Project Neighbors. The board tied on one matter, for a five-unit building at 206 Monroe St., and tied again at its next meeting, effectively killing the matter.

The board voted 4-0 for the second project, a Project Neighbors/Housing Opportunities partnership for 16 studio apartments on a commercially zoned lot at 908 Franklin St.

The Franklin Street project drew fewer complaints and drew support from a wide variety of people in the audience.

The project, now mired in the courts, has yet to move forward.

“The project could have been in the ground last fall and approaching completion right now,” said Paul Schreiner, executive director of Project Neighbors.

By mid-July, JJD Properties, LLC, which owns adjacent property at 200 Billings St., filed a lawsuit in Porter Superior Court against the BZA, later adding Housing Opportunities and Neighbors Corp., the umbrella organization for Project Neighbors, to the suit.

The complaint noted that the BZA did not approve oral findings of fact and conclusions before voting in favor of the project, and stated that the board attorney, Patrick Lyp, who was not specifically named in the lawsuit, advised the board that “the legal standard necessary to approve both a use and developmental standards variance, was not found on the face of the application or in the facts provided at the hearing.”

Since then, two members of the BZA have been replaced and, in late March, Porter Superior Court Judge Jeffrey Clymer granted a summary judgment in favor of the defendants, ruling that the BZA’s vote stood, though JJD Properties “is still allowed to challenge whether the BZA’s findings of fact were deficient or sufficient.”

Lyp filed a “motion to correct errors” in late April, which stated, “It is the position of the BZA that it erred in granting the variances requested by Defendants Housing Opportunities Inc. and Neighbors Corporation.”

According to the minutes from the June meeting, Lyp told the board before the vote that criteria for the variances had not been met and the city does not typically support commercial property used for residential purposes, and there was nothing in the petition to support why the property could not be used as a commercial property.

Lyp asked Clymer to remand the decision back to the BZA for another vote, and for a hearing on the matter. Clymer has not yet ruled on the request.

The apartments got the green light from the BZA, were put on hold by the lawsuit, received the green light from Clymer, “and now it’s on hold again,” Schreiner said.

“I think it’s fair to say the housing that’s so desperately needed would’ve been done this year,” he added.

While speakers at the June meeting noted the industrial past of the lot and possible environmental concerns, Schreiner said the property came with “a clean bill of health” when his nonprofit received the title. Project Neighbors also planned to do its own,

State statute provides that BZA members serve four-year terms “and cannot be replaced absent cause,” board attorney Patrick Lyp said.

independent environmental assessment of the property “but we never got to that point.”

JJD Properties has filed in support of remanding the case back to the BZA.

“I fully support the request as the original decision was made in error,” Jeff DeRubbo, owner of JJD Properties LLC, said in an email. His attorney, Stephen Vander Woude, did not return a request for comment.

Attorney Ivan Bodensteiner, who represents Neighbors Corp., declined to comment beyond his court filings, which most recently request that Clymer deny the “motion to correct errors” and allow the BZA’s decision to stand. He noted that, “it is too late for the BZA to attempt to overturn an Order in its favor.”

In an email, Lyp said there were two changes to the BZA membership in 2020 in the weeks after the vote in favor of the Project Neighbors apartments.

“Ryan Wright resigned and Melanie Trowbridge’s term expired. In the case of Mr. Wright, Kyle Yelton was named as his replacement. In the case of Ms. Trowbridge, Paul Reed was appointed,” Lyp said. Of the other three members, he added, Diane Worstell is appointed by the Plan Commission; Mike Micka is appointed by the City Council; and Martin was appointed by former Mayor Jon Costas.

State statute provides that BZA members serve fouryear terms “and cannot be replaced absent cause,” Lyp said.

According to the city’s website, ci.valparaiso.in.us, the BZA held a virtual executive session on Oct. 2 to discuss pending litigation.

The BZA held another virtual executive session on April 19 to discuss strategy with respect to the “initiation of litigation or litigation that is either pending or has been threatened specifically in writing.”

While the agenda is not on the city’s website, it was emailed to members of the local media on April 15.

“As you know, official action is not taken at an Executive Session and I cannot disclose my communications with the BZA; however, it is fair to assume that this matter was discussed,” Lyp said in his email.

Lyp filed the “motion to correct errors” the day after the executive session.