Photo provided An artist’s rendition shows a proposed mixed use apartment development on land near Cummins’ parking garage in downtown Columbus.
The Columbus City Council has given the final green light to a $5.8 million subsidy for the developer of a proposed mixed-use development in the city’s downtown that is expected to include about 50 luxury apartments.
The loan seeks to help developer Flaherty & Collins bankroll a proposed five-story, mixed-use development that would include about 50 luxury apartments and around 10,000 square feet of ground floor retail or commercial space in front of Cummins Inc.’s parking garage along Washington Street between Sixth and Seventh streets.
Cummins, the largest employer in Columbus, owns the property that will be developed and hired Flaherty & Collins to develop the site. The total estimated cost of the development is around $16 million.
City officials have described the loan, which will come from the Central TIF funds, as a “forgivable loan” that the developer will pay back over time through property taxes. 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.
The city council meeting drew a crowd, with several members of the audience speaking during a public comment period. Most of the speakers asked the council to vote no on the project or at least hold off on making a decision until the city completes its housing study. At times, the meeting became heated.
The council voted 4-2 to give final approval to an ordinance authorizing the loan in front of a packed house on Monday evening. Council members Jerone Wood and Grace Kestler voted against the measure, while council member Elaine Hilber abstained because she is a Cummins employee. No council members changed their votes from the first reading of the ordinance earlier this month, which also featured many people speaking against city funding for the proposed project.
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 the concept is the best use of the space.
On the other hand, those in support of the project have said that an influx of residents will benefit downtown, multiple housing types are needed in Columbus, and investing in this project does not preclude the commission from also pursuing affordable housing projects.
Deron Kintner, general counsel with the developer, estimated at a previous meeting that he would expect the target price of the new apartments to be similar to The Taylor, a new apartment development downtown on Second Street, which is about “$1,300-something on average.” He also said that rent levels will ultimately be determined by the market.
On Monday, city officials said The Taylor, which also is supported by city redevelopment financing, was at about 30% occupancy.
