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Committee recommends 9-year tax abatement for 16-unit Allen Edwyn project near Marion and Leland
Summary
The Community Investment Committee recommended a nine-year tax abatement for a 16-unit Allen Edwyn redevelopment at Marion and Leland, including commitments that 12 of the units be affordable to households at or below 120% of area median income.
The Community Investment Committee voted to forward a favorable recommendation for resolution 25-30, a multifamily property-tax abatement for a 16-unit development owned by the Redevelopment Commission at the Marion and Leland intersection.
Joe Molnar, Assistant Director of Growth and Opportunity, said the project will produce 16 new housing units including single-family homes, duplexes and a cottage court. Molnar said Allen Edwyn has agreed that 12 of the 16 units will be affordable to households making at or below 120 percent of area median income.
Why it matters: Molnar told the committee the total private investment is approximately $2.5 million and that the project will activate long-vacant land in the near-Northwest neighborhood. He also said Allen Edwyn has committed to using as much local labor as possible and presented a map of local trade partners.
On tax impacts: Molnar provided estimated tax numbers. He said the annual taxes after completion would be about $35,000. During a nine-year abatement period the project’s total estimated taxes would be about $322,000, with roughly $189,000 abated and about $133,000 paid. Over 10 years Molnar said the project would generate about $170,000 in taxes compared with roughly $8,000 if the land remained vacant, and over 20 years would generate more than $500,000 versus $16,000 if unchanged.
Developer Brian Farkas told the committee financing was secured and that construction would begin quickly after closing the property in July; he said the developer expects to "start moving dirt the next day." Committee members asked about parking; Farkas estimated roughly 12 to 15 on-site spaces and said additional street parking is available.
No public speakers addressed the item. Committee members moved resolution 25-30 to the full council with a favorable recommendation; roll-call recorded six ayes (Committee Member Bolden Simpson; Committee Member Gooden Rogers; Citizen Member Thomas Gray; Citizen Member Kane Kujeski; Committee Vice Chair White; Committee Chair Warner). The item will be before the full Common Council at 7 p.m.
