Transformational Housing pivots 101 Jackson plan after structural assessment raises costs

City staff and project leaders told the Jefferson City Council that the 101 Jackson transitional-housing project, funded through a Missouri Department of Economic Development CDBG–CARES Act award, is shifting from rehab to demolition and new construction after an onsite structural assessment found unsafe masonry requiring more than $1.1 million in repairs.

Rachel Cinzi, Neighborhood Services Supervisor for the city, said transformational housing applied for the grant through the department and was awarded $544,000 to provide transitional housing. “One of the requirements was to have a community facility to provide transitional housing,” Cinzi said. The original scope used CDBG funds to rehabilitate an existing former Barbara Bishop property into five transitional units.

During asbestos and lead-based-paint abatement, contractors uncovered structural issues in the brick masonry. Staff then procured a structural-assessment report and cost estimate from Allstate; the report estimated roughly $1.1 million in repairs to make the existing building safe, according to Cinzi. The project board decided to pursue demolition and new construction instead. Cinzi said the change of approach is permitted under CDBG rules because the program funds housing-unit development but that the project must update its environmental review record under NEPA and the National Historic Preservation Act before demolition proceeds.

Transformational Housing representatives Mark Key Caper (board president) and Jerry Rowe (project lead) briefed council; Rowe confirmed the group is discussing how to sequence the demolition and construction costs with available grant funds. Council members asked about prior costs: Cinzi said lead abatement work cost roughly $7,000 and that asbestos removal was performed as part of abatement work and would have been required regardless of demolition.

Council questions also covered parking and site layout for the new building; Cinzi said parking will be behind the Jackson Street site with access off State Street. Key project facts presented to council: the CDBG award is $544,000; the grant deadline is 2027-08-23; structural repairs were estimated at about $1,100,000; the original plan provided five units (two 3-bedroom and three 2-bedroom), while new construction would include one 3-bedroom and four 2-bedroom units, keeping the same total number of units.

Next steps listed by staff are completion of the updated environmental review record, a public-comment period on that review, DED issuance of an authority to use grant funds (notice to proceed), and then demolition and either phased or combined demo/new-construction sequencing depending on final funding and design decisions.