Published December 1st, 2022 at 12:30 PM2 minute read
(Editor’s note: The full City Council approved funding for the redevelopment plan.)
By Kevin Collison
Construction is expected to begin soon on a $33.8 million Jazz Hill project that will renovate 11 historic but derelict apartment buildings on The Paseo near downtown into 197 affordable apartments.
An additional $150,000 for the project was endorsed Wednesday by the City Council Neighborhood, Planning and Development committee, and the full Council is expected to support the appropriation when it meets today.
The project, which is expected to be fully completed by Summer 2024, is being done by the Twelfth Street Heritage Development Corp. and Flaherty & Collins of Indianapolis. Buildings will be opened on a staggered basis as construction is finished.
The plan was first approved for tax incentives three years ago. The original developer, Maxus Properties, was unable to move forward with the project however, and the new team took over a year ago.
The large brick apartment buildings to be renovated were built between 1896 and 1906 and are located along the west side of an impressive stretch of The Paseo between Ninth and 14th streets. Eight of the 11 buildings are currently vacant.
The buildings were converted to public housing in 1975 and later renovated using the historic tax credit program in 2000, according to documents filed with the Planned Industrial Expansion Authority.
The new redevelopment plan will utilize the 25-year property tax abatement, 10 years at 100 percent, 15 years at 50 percent, and a sales tax exemption on construction material approved for Maxus three years ago by the Planned Industrial Expansion Authority.
The additional $150,000 comes from the Central City Economic Development tax board. The CCED, which is funded by a special sales tax approved by city voters to help economic development on the East Side, is contributing a total of $4.1 million to the project.
The development team also is receiving $12 million in affordable housing tax credits from the Missouri Housing Development Corp., and $6 million in federal and state historic tax credits.
The Jazz Hill Apartment project will include 14 studio, 147 one-bedroom and 36 two-bedroom units. The monthly rents expected to be charged for the revived Jazz Hill project are estimated at $600 for a studio, $725 for a one-bedroom and $825 for a two-bedroom.
Flaherty & Collins has been active building new market-rate apartment projects in greater downtown including the Union at Berkley Riverfront and The Yards located in the West Bottoms.
The firm also is pursuing a 300-unit apartment tower project next to the City Market on what is now a city-owned parking lot.
The developer plans to set aside 60, or 20 percent, of the City Market apartments for affordable housing, 45 at up to 70 percent of Median Family Income and 15 at 50 percent of MFI.