10-14-13 Common Council Agenda & Packet

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South Bend Common Council Near Northwest Neighborhood, Inc. October 1, 2013 Page 2 the Ford Building site fronting Portage Avenue, and then add new construction on a portion of that site as well as the former shopping center location. A commercial bay of approximately 1,500 square feet will be included in the project as well. The project would add 65 units of affordable housing to the neighborhood, all available to those whose income at initial occupancy is at or below 60% area median income. The bedroom mix would be predominately I bedrooms (41 total) with the balance being 2 bedroom units (24 total). The property will provide on -site laundry rooms at both locations, a full -time on -site property manager, a community room, exercise room, and secured indoor bicycle storage. The application for rental housing tax credits and future development is a partnership between NNN and Englewood Development Company, Inc's affiliate for Indiana tax credit development, Housing Directions LLC. NNN would be the 100% owner of the general partnership. Total hard costs for the project are estimated at approximately $8.4 million and total project costs will run to $10.9 million. NNN does not have information regarding their contractors at this time. That information will be provided to the Common Council on the date set for receiving the confirming resolution. The term of the tax abatement will be set at that time. Based on current estimates, they will qualify for a three year to a six year abatement. Total taxes to be abated during the (3) three -year abatement period are estimated at $405,536. Total taxes to be amid during the (3) three -year abatement period are estimated at $423,062. Total taxes to be abated with a six year abatement are $693,698 and total taxes paid with a six year abatement are $963,497. Per the petition, the project will create one permanent full -time and one permanent part-time job within the first year representing a new annual payroll of $45,000 and will maintain zero existing permanent full - time and zero existing part -time jobs.