Photo provided An artist’s rendition of a proposed mixed use apartments development on land near Cummins’ parking garage in downtown Columbus.
The Columbus Redevelopment Commission has approved a project agreement for a mixed-use development in front of the Cummins, Inc. parking garage that calls for a $5.8 million subsidy from the city.
The commission approved the measure on Monday. Redevelopment director Heather Pope said that Columbus City Council’s Dec. 5 agenda is expected to include:
- A resolution to approve the project agreement
- A resolution to create a new Tax Increment Financing (TIF) district to support the project
- The first reading of an ordinance for a forgivable loan to fund the project
Flaherty & Collins, the developer of The Taylor, has presented a proposal to create a mix of apartment units and commercial space in front of the parking garage, which is located along Washington Street between Sixth and Seventh streets. The proposed site is currently owned by Cummins, with Flaherty & Collins indicating that they plan to purchase it later on.
Deron Kintner, general counsel with the developer, said that the building is expected to include approximately 10,000 square feet of commercial space on the ground floor and 50 apartment units on the four stories above. He estimated that about 60% of the units will be one-bedroom and 40% will be two-bedroom.
The total project cost is estimated at $15.5 to $16 million, he said.
The resolution approved by the commission authorizes the use of $5.8 million in TIF funds to cover a financing gap, with the expense being subject to approval by the Columbus City Council.
“The $5.8 million will be issued as a forgivable loan rather than a bond,” said Pope. “…We’ll just basically write a check for $5.8 million rather than taking on debt.”
She added that the commission plans to pay the amount out of its Central TIF, with Flaherty & Collins paying it back over time through their property taxes.
As part of this repayment strategy, the redevelopment department plans to move forward with creating a new TIF at Sixth Street and Washington Street.
A TIF district is a mechanism that allows the redevelopment commission to retain increasing property taxes in a selected area to fund projects intended to benefit the community.
Since the mixed-use proposal was unveiled, some city officials and members of the public have expressed concerns about the project, such as the possible price point of the apartments, the proposed level of subsidy, and whether or not the concept is the best use of the space.
Councilwoman Grace Kestler, who serves as a nonvoting liaison to the commission, said that while housing is a clear need in the community, she is unsure about Flaherty & Collins’s proposal. Since the city’s housing study is not yet complete, it’s unclear if this kind of housing is needed or if this level of subsidy is appropriate, she said.
On the other hand, those in support of the project said that an influx of residents will benefit downtown, there is a need for the additional commercial space, multiple housing types are needed and investing in this project does not preclude the commission from also pursuing affordable housing projects.
Columbus Area Chamber of Commerce President Cindy Frey said that she is excited about the housing study and has seen that communities across the state are looking at their housing needs as well.
“It’s going to be really important that we be seen as a community that is pro-development,” she said.
She added that there is a need to address low-income housing, but this project “is a real positive for our downtown.”
Councilman Tom Dell — who, like Kestler, is a Democrat — also spoke in favor of the project.
Some of the discussion also touched on how similar this development will be to the Taylor, which is located at 725 Second St. and is nearing completion. Flaherty & Collins is the developer on this project, and the company’s construction arm is the general contractor. The development includes 200 units and space for an urban grocer.
The Taylor is expected to cost $41 million, per estimates from Flaherty & Collins. The city agreed to invest $11.8 million into the development under the project agreement, according to Bruce Donaldson with the Indianapolis law firm Barnes & Thornburg.
City officials have said in the past that the development’s property tax dollars will reimburse the city for this contribution. The commission also committed to selling property for the development at minimal cost to the developer.
According to The Taylor’s leasing site, the cost of available units ranges from $1,085 to $1,105 a month for a 550-square-foot studio to nearly $1,900 for a two-bedroom unit with 1,500 square feet.
Kestler asked if the target price for the proposed apartments at Sixth and Washington will be similar to The Taylor.
“Yeah, I think at The Taylor we’re at $1,300-something on average,” Kinter said. “I would expect this would be around that as well.”
Flaherty & Collins’ target demographic for this kind of project is young professionals, couples without children and empty nesters, he said.
Commission president Al Roszczyk added that The Taylor is 26% occupied, and 44% of these lessees are from out of town.
Flaherty & Collins is still seeking a grocer tenant for the development, Kintner said. While they previously had a letter of intent with one company, this business ended up pulling out. Flaherty & Collins has gone back to this potential tenant multiple times to see if they might reconsider and has spoken to many other businesses, Kintner said.
“It’s always been tough to get a grocery store,” he said. “It’s especially tough after COVID. The downtown traffic counts, both literally and people-wise, are lower than what they were.”
However, he added that the project’s imminent completion, along with the economy hopefully rebounding, may help attract a tenant.
Pope said that, at the time the city executed the agreement on The Taylor, Flaherty & Collins had a letter of intent with Bloomingfoods Co-op Market.
