Council approves 9-year tax abatement for Allen Edwin development to add 16 rental units

The Common Council adopted Resolution 25-26, designating a set of vacant infill parcels as an Economic Revitalization Area to support a 16-unit rental housing development by Allen Edwin Residential Builders LLC and approving a nine-year real-property tax abatement for the project.

Joe Molnar, assistant director of Growth and Opportunity, summarized the site as a vacant parcel near West Marion and Leland streets and described a site plan with a mix of single-family, duplex and cottage-court style units. Molnar said the project’s 16 rental units include 12 units that, under an agreement with the city, will be affordable to households at or below 120% of area median income (described by staff as workforce housing). He said the redevelopment commission holds the land and has a purchase agreement with Allen Edwin. Molnar provided tax-projection estimates: after the project is completed the estimated annual taxes would be a little less than $36,000; the nine-year abatement would produce roughly $323,000 in estimated taxes over the abatement period with approximately $133,000 paid and about $190,000 abated (estimates provided by staff). Molnar said the total investment is approximately $2.5 million.

Brian Farkas, director of workforce housing at Allen Edwin, said the developer intends to close in July and begin construction shortly afterward with move-ins expected in spring–summer of the following year. He said Allen Edwin has committed to using as much local labor as possible and provided a map of local trade partners. Council members and nearby residents present at the hearing expressed support for returning housing to a long-vacant area; the resolution passed by roll call (nine ayes).