The Seymour City Council has officially granted a tax abatement for a $12.5 million project to provide seniors 55 and older with a new option for housing.
That tax break for Crossroads Village will follow the city and state’s standard abatement schedule for 10 years.
In the first year, 100% of taxes will be abated. That percentage decreases to 90% in the second year and 10% more each year until taxes are being paid in full.
The total amount of the abatement is projected to be $305,089.
Developers had requested a custom abatement with a different schedule starting with 95% of taxes abated in the second year. That amount decreased by 15% for the next three consecutive years, 10% for four years and 5% in the final year of the abatement.
The difference equaled about $500.
Council members agreed they didn’t want to make the schedule different than normal even though the state allows municipalities to create custom abatements.
“I know when we talked about this last year, we weren’t really in favor of doing that custom abatement because it’s completely different from what we normally do,” Councilman Jerry Hackney said. “But I am in favor of an abatement for you.”
Council President Dave Earley agreed.
“It may not be that much, but that’s the standard we use for others,” he said. “If things down the road change, then maybe it’s something we need to change, but I would have to agree that we go with the standard schedule that we’ve been using with everyone else.”
Late last year, the council changed its rules on tax breaks for residential development projects to give the city the ability to grant real estate tax abatement to proposed housing developments that qualify.
The amendment was added in light of changes made to state statute giving municipalities the authority to allow tax abatement on certain housing projects that benefit the community.
Now, housing developers can apply for tax abatement if the project meets one of three criteria:
If the development is a multifamily facility (apartment or duplexes) that contains at least 20% of units available for use by low- and moderate-income residents
The facility is located in an economic development target area
The area is designated as a residentially distressed area
Crossroads Village is scheduled to get under construction next month on 2 acres of once-contaminated property at 500 S. Poplar St., just south of Schneck Medical Center. The project is expected to create an estimated 125 construction-related jobs.
The four-story, 64-unit senior living community is being developed by Thrive Alliance and Jonesboro Investments and will open next summer.
The apartments will be located on the northeast corner of the property with 24 one-bedroom units and 40 two-bedroom units. Designs include an outdoor gathering area for residents and 80 parking spots along with a stormwater basin.
The apartments will be income-based, so there is an income range a tenant would have to be within to qualify. Rent costs are expected to be between $525 and $700 per unit. Units will be 800 square feet for one bedroom/one bath and 900 square feet for two bedrooms/one and a half baths.
Last year, the state awarded Thrive Alliance $1.2 million in low-income housing tax credits to build the apartments.
Besides the tax abatement, the city also has supported the project with a commitment of $50,000 to put in new sidewalks around the property.