Though officials acknowledge the slim chance of success, the redevelopment of the 1950s-era Love Apartments on the corner of Sixth Street Court East and Martin Luther King Boulevard East is getting another chance and officials want it done sooner rather than later.
North Star Development was selected in March and a conceptual site plan is currently under review by the city. The project includes demolishing the old apartments, renaming the new units Lincoln Village, and going from 36 ground-floor units to 50 units in two-story buildings.
KC George, of the National Development Council said, “All the ducks are in a row. It has all the approvals to move it forward. But it is a tax credit application, so nothing is guaranteed. If it isn’t successful, we go back to the drawing board.”
In July, the city boosted the application by agreeing to pay $40,000 in Community Development Block Grants, but only if the application is approved. The city also agreed to split predevelopment costs at a price of $28,000. City administrator Carl Callahan said the work has to be done anyway, but the city will retain rights of environmental testing.
North Star is applying for 9-percent tax credits, which would generate about $9 million in revenue by investors purchasing the credits for a project estimated to cost $11.2 million. However, only 20 projects are selected each cycle out of an average 200 submissions. The application must first be approved and then relies on a lottery system for funding.