Evansville council approves 30-year PILOT for 264-unit Eastfield Reserve affordable housing project

The Evansville Common Council on April 28 unanimously adopted Ordinance G-2025-10, approving a 30-year payment-in-lieu-of-taxes agreement to support Eastfield Reserve, a proposed 264-unit affordable multifamily development at 3200 North Burkhart Road.

City staff described the proposal as a low-income housing tax credit project that will reserve units for households at 60% of area median income or below and said the PILOT is a development incentive that lets the city negotiate an annual payment schedule to support project financing. "The term of this pilot is for 30 years, and the annual payment starts at $2,000 per year and increases by 3% each year thereafter," staff said when summarizing the agreement's Exhibit B.

The developer, Jerry Burgess of the Marion Group, told council the team is preparing an application to the Indiana Housing and Community Development Authority for tax credits and bond financing, with an anticipated closing in the third quarter of 2025 and site work to follow. "Our team remains extremely excited about this opportunity," Burgess said, noting the design proposes a mix of one-, two- and three-bedroom units and that the site sits on roughly 22 acres with room for green space and an on-site pond.

A resident asked whether local contractors and workforce would be used; Burgess said the project has a general contractor and the developer will "make an effort to engage local subcontractors." Council members expressed support for the project and appreciation for engagement with abutting neighbors during zoning and permitting.

Because Eastfield Reserve is financed with low-income housing tax credits, staff said the property must remain compliant with Section 42 rent limits for the duration of the credit compliance period; failure to comply would remove the property from the tax-exempt PILOT schedule and return it to the regular tax rolls after the 30-year term.

The clerk called the roll after discussion; the ordinance was declared adopted with nine ayes and zero nays. Council members recorded as voting aye were: Councilwoman Mosby; Councilman Hieronymus; Councilwoman Carruthers; Councilwoman Kayler Lindsey; Councilman Britney; Councilwoman Allen; Councilman Green; Councilman Johnson; and Councilman Trockman.

The developer repeated that the 264 units would meet a small portion of the city’s estimated need at the 60% AMI level, citing a market study showing demand of roughly 2,300 such units in Evansville. Burgess said the Marion Group plans to submit financing applications this quarter.

The agreement adopted tonight authorizes the mayor and city staff to execute the PILOT under the terms summarized in Exhibit B and requires ongoing compliance with tax-credit rent limits for the duration of the credit compliance period.