Committee approves PILOT to support 160-unit Grove at Pleasant Run affordable housing
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Summary
A City-County Council committee approved a 15-year payment-in-lieu-of-taxes (PILOT) pilot to help finance The Grove At Pleasant Run, a 160-unit development that will serve households at or below 60% of area median income; the developer said the pilot is needed to meet a local contribution requirement for tax credits.
A City-County Council committee voted to approve a payment-in-lieu-of-taxes (PILOT) pilot to support The Grove At Pleasant Run, a proposed 160-unit affordable housing development in District 24, following a presentation from TWG development representative Marissa Kanatzer.
Kanatzer said the Grove would offer a mix of one-, two- and three-bedroom apartments, indoor and outdoor amenities and a resident services program. "We are seeking a pilot starting at $72,000 in year 1, increasing at 3% annually for a 15-year term," she told the committee, adding the developer would commit to maintaining affordability for 40 years and to provide ongoing resident services.
Kanatzer said the pilot is a critical piece of the project's finance plan because the developer must provide a 10% local contribution for the Indiana Housing and Community Development Authority (IHCDA) Low Income Housing Tax Credit application. She said the project's total development cost is "just under $42,000,000," with roughly $17,000,000 in tax-credit equity, a permanent loan just over $21,000,000, and reinvestment of developer fee proceeds. The developer estimated the pilot-generated savings would amount to about $4,200,000 over 15 years.
Council members questioned service partnerships and school impacts. When asked whether the project had discussed school impacts, Kanatzer said, "We have not had discussions with the school system on this," but that TWG has worked with Department of Metropolitan Development representatives and plans resident services with partners such as Southeast Community Services. A resident, Evan Wareham, asked whether the affordability commitment would remain pegged at 60% of area median income; Kanatzer said the affordability restriction is to serve households at or below 60% AMI and that rents would be adjusted year to year according to HUD/IHCDA guidelines.
Councilor Ron Gibson moved the motion to approve the pilot at committee. The motion was seconded and carried; the committee recorded the approval of proposal 93. No detailed roll-call tally was entered in the transcript.
The transcript records a projected construction timeline presented by the developer: financing close next month, construction start in May and a projected completion in 2027. The committee did not record further procedural steps for the measure in the transcript.
