Discrepancy in Contractual Obligations
In the face of challenging market conditions, Keller is bolstering municipal growth through funding initiatives. These efforts will encompass two key aspects: financial support for municipal housing construction and enticing concept tenders, accompanied by stable and desirable heritable building rights. These programs are scheduled to be presented at the council meeting before the holiday season.
"Our progress notwithstanding, an analysis reveals a persistent increase in interest rates and construction costs, leading to a decline in construction activity," remarked Keller. This uncertainty has caused developers and investors to tread cautiously, and building permit procedures to advance slowly. "It's crucial to confront these adverse market conditions," Keller asserted.
In the initial public status report following the council's decision on the housing construction offensive, building commissioner Cornelia Zuschke summarized the developments: "All areas mentioned in the concept are progressing according to schedule. Quality-assuring procedures, land-use planning, and negotiations with private companies have commenced. However, certain areas experiencing negative development are being reconsidered to ensure our focus on feasible solutions."
However, the SPD has expressed dissatisfaction with these measures: "No new insights are provided as to when specific measures will be implemented by 2030 - chaotic and disorganized," they stated. Keller allegedly failed to meet commitments agreed upon with the SPD in June 2023, such as delivering housing on ten city plots by the end of 2023. Sabrina Proschmann, SPD co-chair, underscored this failure, citing missed milestones like the lack of pioneering procedures for the Bergische Barracks and the absence of progress from investigations on Sodener Weg, the Mühlenberg, or the Tetelberg. Keller reportedly plans to forego further development on the Mühlenberg and involve private investors on the Tetelberg, contrary to the agreement. Furthermore, Proschmann questions Keller's commitment to making use of city resources on plots like the Glasmacherviertel, as promised through a council resolution.
Recent discussions revolve around the distribution of municipal loans to the housing industry under the "fire hose" principle. This strategy would reportedly not favor municipal subsidiaries and cooperatives, potentially hindering the provision of affordable and fair housing. Proschmann emphasizes that the further opera process cannot be considered independently of the progress made in the housing construction offensive.
In light of these challenges, Keller is planning to introduce policies in the realm of politics and general-news, focusing on the financial aspect of business and specifically municipal growth. This will involve requesting funds for municipal housing construction from the finance sector.
The ongoing dispute with the SPD, regarding the housing construction offensive, has brought politics into play, with the SPD demanding measurable action and adherence to agreed commitments in the business sphere, particularly in the field of finance.
