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Committee recommends Edge 400 tax‑fix deal to enable three‑phase Newpark Avenue development
Summary
The committee recommended sending a tax‑fixing agreement for the Edge 400 project to council after a presentation explaining why low‑income housing tax credits make a 15‑year fix (plus renewals) necessary; developers emphasized the deal is time‑sensitive to start construction and secure LIHTC financing.
The Planning, Economic Development and Housing Committee voted July 21 to forward a tax‑fixing agreement for the Edge 400 project on Newpark Avenue to the full City Council with a favorable recommendation and additional council questions.
Jack Benjamin, the city’s economic development director, summarized a three‑phase development proposal for roughly 300-plus units that includes two deed‑restricted LIHTC buildings (a 4% and a 9% LIHTC component) and a later phase with market‑rate housing. Benjamin told the committee the financing structure requires a tax‑fixing agreement because deed restrictions on rent levels “deflate the amount of revenue” and make the project infeasible without a tax stabilizing mechanism: “the project doesn't pencil unless there's a fixing agreement.”
Benjamin described an initial proposed fixing term of 15 years with two five‑year renewal options tied to retention of LIHTC rent restrictions. He presented pro‑forma charts and a projected debt‑service coverage analysis showing lenders typically need a 1.15–1.25 coverage ratio in early years. Development team members said they want to start construction promptly to meet LIHTC and underwriting timelines; one developer added the project aims to preserve five theaters in the cinema building while adding restaurant/entertainment uses.
Council members asked about parking, stormwater management, and the length of the tax fix; staff noted the 2.5% annual escalator in the proposed agreement and explained the state recently allowed longer tax‑fix terms to accommodate LIHTC deals. Benjamin and the development team said the terms are in line with comparable LIHTC projects and urged timely council action so the project can proceed to CHFA/DOH closings.
The committee voted to send the tax‑fixing agreement and supporting materials to City Council with a favorable recommendation and requested follow‑up information on detailed tax amounts and comparative per‑unit figures.
