Tax credits denied for two housing projects

Feb. 25--ANDERSON -- Two potential new housing developments have been denied tax credits for projects in downtown Anderson and the former Edgewood Plaza area.

The Indiana Housing and Community Development Authority this week denied the tax credits for the Tower Apartments renovations and a housing development at the Edgewood Plaza site.

Anderson Mayor Thomas Broderick Jr. said Friday he didn't know if the two organizations would reapply for the tax credits.

"There is a history of when an organization reapplies they are given a second look," he said. "I was a little surprised. I felt there was a good chance to get one of the applications approved."

Greg Winkler, executive director of the Anderson Economic Development Department, said both projects can apply for tax credits that will be awarded in 2018.

"I was shocked," he said. "Both companies have excellent track records."

Winkler said the Tower Apartments is a viable building and must be positioned correctly in the market.

"There are opportunities for both properties," he said.

Episcopal Retirement Services (ERS) had planned to open senior apartments in the Tower Apartments building at the southwest corner of 11th and Jackson streets.

ERS applied for historic tax credits and tax credits from the Indiana Housing and Community Development Authority.

The Indiana Housing and Community Development Authority denied the request for tax credits in the amount of $570,322 based on its score of 122.75.

Broderick said he thought the ERS project would have scored higher.

"I rated it the highest," he said of a letter in support of the applications. "The building needs attention sooner than later."

Broderick said since ERS only requested $570,322 in tax credits, there is a chance the project could move forward.

"If they still have an interest, we would work with them to bridge the funding gap," he said.

The Ohio-based not-for-profit planned to open 43 apartments in the building, with tentative plans for offices on the first floor for social workers and health care. The facility was expected to open in September 2018.

The estimated cost of renovations to the building ranges from $7 million to $8 million.

ERS opened the senior housing at the YMCA in 2014, investing approximately $5.9 million.

The project received $343,419 in tax credits from the Indiana Housing and Community Development Authority (IHCDA) and a $300,000 grant from the Federal Home Loan Bank of Cincinnati.

The Tower Apartments has been going through a slow remodeling process for several years. It is listed on the tax sale list for Madison County as owing $12,412 in property taxes. The building was purchased by U.S. Housing Consultants and American Housing and Realty in 2011.

The MRT Properties group was denied $1.2 million in tax credits for their score of 148.

The NRP Group from Ohio purchased 4.5 acres from the Anderson Redevelopment Commission for $25,000 for the construction of a 96-unit multi-family housing facility that would be constructed in two phases.

The company was looking at making a $12 million investment on the north side of 16th Street, which would allow for future commercial development along Ind. 32.

Broderick said the development of the Edgewood Plaza property can move forward with or without the housing project.

"We're still interested in a commercial and retail development on the site," he said. "We need to get the former Speedway property cleaned up."

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 640-4863.

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