The Decatur City Commission recently approved a funding request to assist with the development of Halo East Decatur in one of the city’s five business districts.
The developer is Northwood Ravin of this mixed-use development on 7.5 acres at 725 E. College Ave., according to a recent memo from Decatur Affordable Housing Fellow Kristin Allin to City Manager Andrea Arnold.
From East Decatur Tax Allocation District (TAD) funds, $5,352,000 would be invested by the city over 10 years for Halo East Decatur.
The development would consist of more than 17,000 square feet of ground-floor retail; 372 multi-family units, including six live/work units; a café/co-work space and a 545-space parking deck, including 50 public spaces available for retail.
Of the residential units, the development would provide 41 affordable rental units at 80% of the Area Median Income.
Also, the development would include public improvements such as a nearly one-acre greenspace and the Freeman Street extension, connecting Sams Street and New Street.
In 2010, the city of Decatur voted to approve the use of TADs within the city, using tax-increment financing to encourage desired development by enabling the city to reinvest future taxes from real estate project development back into a project area and as a way to pay for public infrastructure.
Then in 2015, the East Decatur TAD was established by the city to collect the tax digest growth resulting from private development in the East Decatur TAD redevelopment area when the taxable digest amount was $21,966,972.
This year the East Decatur TAD value is $87,819,183.
The only financial commitment from the East Decatur TAD is $438,100 to Columbia Residential for infrastructure costs in support of affordable housing.
Northwood Ravin submitted an initial application in August and a revised application in October with a $10,000 application fee.
The first funding period is expected to occur upon receipt by the city of the first Temporary Certificate of Occupancy - anticipated in the first quarter of 2024.
The Halo East Decatur project cost is expected to be $109,814,965.
Total TAD funds requested are well below the city’s 10% threshold, at 5.9% of the project cost.
Information: decatur.civicweb.net/document/3886, bit.ly/3CdEIoE
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