Great news for the Drake neighborhood: a run down corner site may soon be replaced with a brand new, market rate 4-story apartment building. The building would naturally cater to Drake students or others looking to live in the area.
The project will cost an estimated $8.4 million and is expected to garner Workforce Housing Tax Credits from the Iowa Economic Development Authority.
It would reportedly be a joint effort between Neighborhood Development Corp. and JKLM Real Estate. The final project would comprise 48 apartment units at 3201 Forest Ave. That site is located across the street from a Taco Bell/KFC restaurant and a couple blocks west of Drake University.
From the Des Moines Register:
Lyons said he hopes to submit an application for state funding as soon as possible. The workforce housing program operates on a first-come-first-serve basis. There is a $20 million cap each year for projects across the state.
The application process will coincide with finalizing the site plan and meetings with neighborhood groups, Lyons said.
“There are a lot of things that happen simultaneously at the beginning because this is a $7 or $8 million project. You need to have your ducks in a row before you spend half a million dollars on the property itself,” he said.
The state tax credit application requires a resolution of support from the Des Moines City Council and a local financial subsidy of at least $1,000 per apartment unit.
The local financing would have been automatic in previous years through a generous tax abatement policy extended to all residential projects in Des Moines. But that policy was amended to bar tax abatement for multifamily projects like this one that fall outside targeted areas. That took effect at the beginning of the year.
Read the full article from the Register here: http://www.desmoinesregister.com/story/news/2016/03/22/new-4-story-apartment-slated-drake-neighborhood/82122196/