Council partially funds Maple St. development proposal

After an extensive and complex conversation and exchange of information, city council approved $225,000 as part of a funding strategy for development in the 100 block of North Maple Street.

Multiple redevelopment efforts are proposed for the 100 block of North Maple Street. A Creston based investment group and a developer from St. Louis are interested in improvements to 110, 112 and 120 N. Maple, but asked for the city’s assistance. Creston Mayor Gabe Carroll did not lead the conversation with council as he is involved with Creston based investment group called UR-GE (Uptown Revitalization-Growth for Everyone).

Council member Brenda Lyell-Keate was absent.

“We have had some drafts we worked on the past couple of months and can’t quite come to an agreement. We need to know what the direction is from council so we can complete an agreement and present it to a developer to sign. We can’t push it down the road,” said City Administrator Mike Taylor.

The agreement for 110-112 N. Maple Street uses LMI funding (Low to Moderate Income). The properties, which are the former Van Gelder clothing store and Agnew buildings, will be known as the Agnew Loft Apartments.

In a November request from Addam Wall to council, “Agnew Lofts, LLC would like to formally request LMI (Low to Moderate Income) funds of $225,000 from the City of Creston to contribute towards the complete renovation of the vacant properties. Agnew Lofts Apartments is being developed in partnership with Uptown Revitalization – Growth for Everyone, Inc. a local charity. The property will consist of 12 new one, two and three bedroom loft apartments and roughly 2,600 SF commercial space. Agnew Lofts, LLC is planned as a community betterment project for the advancement of the Creston community through housing. Property rents will maintain at an affordable rate by committing to renting 20% of all units to individuals who make at or below 80% of the area median income. The development commits to donating 100% of the net profits for the initial 15 years of the renovated property for reinvestment in the Creston Community.”

Creston has about $458,000 in LMI funds which are only to be spent on those projects.

Estimated cost for Agnew Lofts is $2,308,481. A $600,000 CDBG Downtown Housing Grant was awarded to the project. Uptown Revitalization – Growth for Everyone (UR-GE) has contributed $103,481 plus $1,255,000 in debt. UR-GE will provide $125,000. Agnew Lofts needed $225,000 to complete the funding package and asked council.

Mayor Gabe Carroll, said the city’s money is intended to be used phase one for abatement and to reinforce the building.

“If the rest of the project doesn’t happen, we’ll be left with a building that is sealed, but not deteriorating,” Carroll said.

The developer needs a complete funding package approved before acquiring about other financing.

“I’m not against it,” said council member Kiki Scarberry. She just wondered about the future of the project.

“I know this is a big chunk of LMI funds. We’ve had those funds for a considerable amount of time. If we would have spent $225,000, even if 10 years ago, would get us a lot of further than $225,000 that we spend today.” Scarberry said “Those funds for housing and affect more people than the number of people with North Maple project.

Council member Richard Madison cast the only no vote.

The vote over 120 N. Maple St. was in favor of using $114,000 of the city’s nuisance loan funds to construct a privately-owned parking lot. Madison had the only no vote.

The property was first intended by RANT, LLC for building on the property including retail space and a minimum of 10 units second-story apartments. The city had $349,046 remaining from the $1 million Nuisance Property and Abandoned Building Remediation Assistance Loan (NPAB) which the city could collect from IEDA upon demonstration of expenses related to remediation of the Development Property.

The revised plan is privately-owned parking lot that with 26 spaces. Those spaces will complement rental units for Maple Street Apartments at 124 N. Maple and the Agnew Lofts Apartments. Council member Matt Levine asked if the parking lot would meet all requirements of development on the lot. “Does a grass field satisfy the requirement. Or does it need to be something more.”

Council member Steve Wintermute wondered about the other people in Uptown Creston.

“If you have all those apartments you have to have somewhere for people park or business owners will be up in arms,” he said. The city will not be responsible for the lot.

“Does anybody have a problem with the city paying for a private parking lot. Is that crossing anybody else’s mind? How do you resolve it because I’m having a hard time,” said Scarberry.

“If you are putting 19 apartments in, then I have a business up there, then I’m going to be upset every day,” Wintermute said.

“I think they would appreciate it,” Levine said.