Council approves $6.65M CDBG loan for Promenade Apartments, adding 94 affordable units in Uptown

The City Council on March 9 approved a $6.65 million CDBG loan to the Community Revitalization Development Corporation (CRDC) to support the Promenade Apartments, a proposed eight‑story development at 3972–3990 Cleveland Avenue that would add 94 rent‑restricted units for households at 30–70% of area median income.

Economic Development staff said the Promenade project will include one‑, two‑ and three‑bedroom apartments (33 one‑beds, 33 two‑beds, 28 three‑beds), solar panels and stormwater bioretention. The loan is structured as a 55‑year simple interest loan at 3% and will be repaid from residual receipts; the city will hold 55‑year affordability covenants.

Staff described the full capital stack as estimated at about $60.3 million, with the $6.65 million city loan equating to roughly $70,000 per unit. The developer has applied for tax credits with awards expected in May 2026; if tax credits are secured, staff said construction could begin in late 2026 with an anticipated 26‑month build period.

Public commenters and councilmembers praised the unit mix (including family‑sized three‑bedroom units) and the project's placement in a state‑designated "highest resource" area near transit and neighborhood services. Councilmember Whitburn moved approval and Councilmember Campbell seconded; the item passed unanimously, 8–0.

Staff noted that ZIMBOP (the City's Zero Emissions Building Policy) does not apply to private projects but that Promenade planned sustainable features that would exceed common standards, including rooftop solar and electric appliances. Staff also noted the loan and use of CDBG funds are subject to HUD rules and timing as the transaction moves toward closing and tax credit allocation.

Next steps: finalize financing contingent on tax credit awards and HUD approvals, execute loan documents and begin construction if funding closes.