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Council approves pre-development agreement for Tapestry affordable housing project
Summary
Marshall approved a pre-development agreement with Tapestry Companies for an affordable apartment project seeking low-income housing tax credits; the city committed a $300,000 cash incentive and the county $107,000, while Tapestry anticipates additional savings through a nonprofit sponsor and sales-tax rebates.
The Marshall City Council voted to approve a pre-development agreement with Tapestry Companies for an affordable apartment project that will apply for low-income housing tax credits.
Lauren Dites, the city's EDA director, said the project reduced the number of units to improve its competitive scoring for credits. "We reduced the size of the project, trying to close the financial gap that you're asking the state to fund," Dites said, and outlined the project's funding package: $107,000 from the county, a $300,000 cash incentive from the city drawn from a mix of statewide affordable-housing allocation, MMU EDA funds and leftover parkway funds, plus a land donation and a retention-pond improvement that benefits the site.
Tim Trimble of Tapestry Companies described the developer's strategy to close financing gaps, including working with a nonprofit sponsor that enables a sales-tax rebate on materials he estimated to be worth about $300,000. Trimble said applications for tax-credit awards are due around July 9; awards typically are announced in December and closing with MHFA can take roughly a year.
Council moved to approve the pre-development agreement; the motion carried.
Next steps: city and developer will continue the application process for tax credits and pursue final financing; construction remains contingent on award and subsequent closings.
