On November 1st, the Decatur City Commission discussed and approved a TAD funding request by Developer Northwood Ravin. Over ten years, and an amount not to exceed $5,352,000, the tax increment financing proceeds will be used to assist in developing the $109,814,965 project located at 725 E College Avenue. The Developer is providing equity equaling 35% of the construction costs, or $38,435,238, which exceeds the required 10% project equity as established in City Guidelines.
According to City documents, the Tax Allocation Districts were established in 2010 by the City of Decatur to encourage development using tax increment financing.
In drawings prepared by Dwell Design Studio, the 7.5 -acre parcel would accommodate 17,000 square feet of ground-floor retail, 372 multifamily units, including six live/work units, a café/co-workspace, and a 545-space parking deck. According to City requirements, the development exceeds the mandatory inclusionary housing ordinance requirements, which requires at least thirty-seven units rented at 80% of the area median income, with forty-four affordable units. Costs associated with the project include the construction of water and sewer lines, park improvements, sidewalks, and the extension of Freeman Street.
City documents have listed some critical benefits of granting the funds to include the following:
- Northwood Ravin is considered a qualified and experienced developer, demonstrating the ability to leverage equity, debt, and other investments.
- The development is considered project-ready and received a Resolution of Support from the Decatur Development Authority this past summer.
- The development estimates the creation of twenty-seven new positions, along with 260 indirect and direct construction jobs.
- The property’s current value is just over $6 million with a projected value of over $95 million post-construction, which will increase tax collections for the City and Schools of Decatur to $1,000,923 from $74,000 annually.
The application indicated that no zoning changes were requested for this project as the Transit Station Overlay District already allowed multifamily and mixed uses. The City Commission also approved the site plan in August. According to a timeline provided in City documents, the next steps for the East Decatur Station development include obtaining building permits and starting construction on the mixed-use project in the Spring of 2022.
