Committee advances pilot to preserve 40 affordable units at 707 North Apartments

The Metropolitan Economic Development Committee advanced Proposal 95, a payment-in-lieu-of-tax (PILOT) request from TWG 707 LP, to the full council after a committee voice vote.

Marissa Kanatzer, senior development director at TWG, told the committee that 707 North Apartments is a 40-unit, mixed-income building completed in 2009 and that its initial 15-year low-income housing tax-credit compliance period expired last year. Kanatzer said TWG won new tax credits and proposes a substantial rehabilitation to preserve and deepen affordability, serving households at 30%, 50% and 60% of area median income and extending the affordability term.

"We are seeking a pilot starting at just over $15,000 in year 1, increasing at 3% annually for a 15 year term," Kanatzer said, adding that TWG would commit to maintaining affordability for 40 years. She said the pilot yields roughly $1,400,000 in savings over 15 years, meeting the minimum 10% local contribution required for the tax-credit application, and that without the pilot the project would be financially infeasible and could convert to market-rate housing.

Kanatzer described planned physical improvements including roof and mechanical replacement, accessibility work to meet modern ADA requirements, upgraded finishes, conversion to NGBS Silver energy standards, and the addition of four fully ADA-accessible units. She said resident amenities will include a fitness center, community room, business center, in-unit laundry and covered parking, and that residents will receive on-site services such as financial literacy, career coaching and community-building activities.

Committee members pressed for details. A councilor asked how the 40-year affordability would be enforced; Kanatzer replied, "So it will be on a restrictive use agreement on the property. Part of the deed for the property will have a restrictive covenant that it has to be used as affordable housing with our 30%, 50%, and 60% units for 40 years." Members also asked about contingency plans for rising construction costs; Kanatzer said TWG has internal contingency and identified potential soft-funding sources to cover gaps if needed.

Kanatzer said TWG plans to partner primarily with the John Bonner Neighborhood Centers for delivery of resident services and confirmed TWG will provide free high-speed Wi‑Fi for residents. She said on-site childcare remains under exploration but is not currently feasible.

With no public speakers and no further committee questions, a motion to advance Proposal 95 was moved and seconded; the committee approved the recommendation by voice vote and will send the item to the full council for final action.

Action: Committee moved Proposal 95 to the full council with a favorable recommendation (voice vote).