ArtSpace update: OEDIT denied Carbondale revitalization credit; board discusses middle‑income tax credit and next steps

Carbondale trustees heard an update from ArtSpace developers and discussed next steps after the town’s community revitalization tax credit application was not selected in the latest OEDIT funding round.

Andrew (ArtSpace) told the board that the Southwest Promenade application for the OEDIT community revitalization tax credit was not funded in the current round; he said roughly $10 million was available and about $41 million in requests were submitted. He recommended the town consider pursuing a new, state-only middle‑income housing tax credit — targeted to households at about 80% to 120% of area median income — as a nearer-term, better-aligned funding source for the Sixth Street component of Town Center.

Andrew described additional financing avenues he and his team had explored, including Department of Local Affairs (DOLA) infrastructure dollars if they become available, municipal bonding (which he said would not likely fund an entire housing project), and possible participation by the regional housing authority led by Hillary Cooper (described in the presentation as a housing authority that could issue bonds or loans). He also noted that modular construction and a smaller project footprint could improve financeability.

Trustees generally expressed interest in continuing the work but favored pausing major pivots until the town’s incoming manager and new finance director are on board. Several trustees proposed a focused financing workshop — modeled on a prior capital-financing workshop — that would bring ArtSpace, housing stakeholders (including the housing authority and Habitat if the board invites them), the new town manager and finance director, and trustees together to evaluate capital stacks, bonding options, tax-credit strategies and timeline requirements. Andrew said the middle‑income credit is a recurring program and that a successful application would require several months of due diligence and modeling in advance of the application round.

No formal action was taken; trustees asked staff to plan a convening once new senior staff have onboarded and to continue work on grant and tax-credit opportunities in the interim.