COBB - The Cobb County Board of Commissioners prohibited the Vinings Main mixed use complex from leasing 140 for sale-only condominiums with a 3-2 vote at Tuesday's board meeting.

The property replaced 200 low quality apartments in 2005 and consists of retail, office, restaurants and residential flats within a four-story building. There are 148 residential flats, although only 140 were involved in the rezoning proposal. Zoning stipulations state that the units are to be for sale only with master protective covenants providing for a maximum of 10 percent of the units to be leased at one time, while the proposal that went before Tuesday's board asked that 140 of the units be leased for five years.

Attorney John Moore, who represented the property's developer, Wood Partners, said that the project was completed just as the housing market collapsed.

"If these aren't leased, they'll probably go into foreclosure, and developments nearby are concerned about an adverse impact foreclosures would have on their properties," Moore said. "This certainly isn't an easy decision, but we have to keep the quality of these units. A foreclosure would, while giving home ownership, allow a $600,000 unit to be sold for $100,000 and this would be absolutely devastating on the property. Why take the chance? We hope you will take the opportunity to support eventual home ownership."

Moore also said that the company has found a bank lender that is willing to do in-house loans.

But Vinings Homeowner Association member Ron Sifen argued that allowing the units to be leased would set a precedent for other struggling properties in an area that was developed with a strong push for home ownership. "If this is passed, other properties will probably try as well. And even when the market was OK, they only sold three units because the prices are so high," Sifen said. "Most people who can afford the rent they're offering, anywhere from around $1,400-$2,000 a month, are probably going to buy in this market anyway. We need a working plan for home ownership, so I ask that you deny the proposal."

Vinings Homeowners Association board member Jody Smith agreed. "Most Vinings residents would rather have less affluent, permanent neighbors than temporary neighbors," Smith said.

Commissioner Bob Ott, whose district contains the property's area, was the first to speak on the proposal. Ott took issue with the mortgage option Moore presented, saying that he felt it would result in balloon mortgage payments after the five-year leasing terms ended. "I take serious issue with some of the conditions in the mortgage. People would see a huge increase in their mortgage payments and could eventually default," Ott said.

The commissioner also asked Moore and Wood Partners representative Bennett Sams why none of the condominiums have been listed on the Multiple Listing Service since March, which Sams said had actually been absent since January. "We didn't want to offer contracts when we weren't sure what future zoning stipulations might come about," Sams said.

Ott added that, when he toured the property recently, there seemed to be no push or marketing initiatives to sell the units. "It seems as if Wood Partners has just been waiting and expecting them to turn into rentals," Ott said.

Ott acknowledged that he felt neither allowing the units to go into foreclosure nor offering them as rentals was a good option, but that he believed reinforcing home ownership was the best. "The quickest way to have home owners is to say no to rentals, and while there has been some discussion about holding the decision for another 30 days, I'm not sure what could be accomplished and that causes first time home buyers to miss the November 1 deadline for federal rebates. My motion is to deny the request," Ott said.

Chairman Sam Olens agreed that the decision was not easy. "It's lose-lose either way, but allowing them to go into foreclosure could mean there is a 75 percent reduction in purchase price," Olens said. "This could turn into a police precinct if it goes into vulture ownership. I understand Ott's points and don't disagree, but I prefer that we continue the motion for 30 days to further press the consortium and speak with county officials."

Lee agreed with Olens, saying that waiting another 30 days to go through the points and scenarios doesn't do any harm and could result in a better option.

The board then took a vote and Commissioners Helen Goreham, Woody Thompson and Ott voted to approve the planning commission's request to deny the proposal, while Lee and Olens were in opposition to the approval.

The Cobb County Planning Commission voted 3-2 to deny the property's request during their Sept. 1 meeting.