JEFFERSONVILLE — Plans were set in motion Wednesday evening for the addition of at least 220 apartment units within two downtown Jeffersonville blocks, as part of the city's hard-fought push for more residential development.
The Jeffersonville Redevelopment Commission voted unanimously in favor of projects on two pieces of property flanking Mulberry Street that have been eyed for development for years.
"I think Jeffersonville is going to grow even more in a positive way, and [I'm] excited to see these projects take shape," Mayor Mike Moore, also a redevelopment commissioner, said after the meeting.
The commission approved a letter of intent from Texas-based firm Waypoint Residential to purchase and develop the former American Legion property near Big Four Station.
The developer, initially interested in Colston Park, is offering to buy the property for $775,000 to build a rental complex with about 200 luxury "Class A" units and a clubhouse. The development will locate directly behind All Care Health and Rehabilitation Center and WesBanco on Court Avenue.
Unlike former plans for the property, the redevelopment commission won't issue bonds to fund any of the construction as an incentive to the developer.
Indiana developer OTH was the selected developer for the property until Moore nixed the deal following delays on the project. OTH planned a mixed use retail and residential complex, but asked for extensions after negotiations with an adjacent business ceased.
The letter of intent serves as the basis of a contract but isn't yet a legally binding agreement.
A portion of Colston Park, which sits atop pre-Civil War era graves, will be sold to Jeffersonville-based ARC Property Investment LLC for the development of a three-story, 20-unit rental complex. The portion of the park that will be developed has been cleared by the Department of Natural Resources, as the graves are further east on the park.
ARC is also developing the Marriott Towneplace Suites next to Colston Park.
"There's a lot of upside to this, and I see really no downside to it," he said. "Other developers have looked at it. The vision originally was for brownstones. This has a strong resemblance to a three-story brownstone, but it puts people with money in their pockets downtown around all the new businesses and restaurants we have down there."
The Colston Park property was appraised for an average of $175,000, but the city is accepting it for just $1. The residential complex is expected to generate as much as $80,000 a year in tax revenue for the city, meaning the redevelopment commission would make back the value of the property in a few years.
"I think this is a great deal to the taxpayers," Moore said.
The complex will occupy about an acre of land, along the front of the park facing Mulberry Street.
The property was already rezoned for such a development last year, with assurances from Jeffersonville Redevelopment Director Rob Waiz that the city would file a deed restriction preventing any commercial development on the property at the request of neighbors.
That deed restriction was never filed with county offices, both Clark County and Jeffersonville city officials confirmed. City Attorney Les Merkley said Waiz' statement of a restriction in a public meeting would legally suffice, adding he intends to formally file the restriction this week.
In any case, developers will be seeking a waiver on this restriction from the Jeffersonville Board of Zoning Appeals. ARC intends to relocate its Fabricon Boulevard corporate office into the development.
Moore said he's pleased the company developing the complex wants to move into its own project.
"That tells me [the owner is] going to see the project is done right ..." he said.
The residential complex is somewhere in between two other projects the redevelopment commission vetted.
When it first advertised the property about a year ago, the commission received only one proposal. A team of local real estate and design professionals offered to buy part of the property for $175,000, proposing seven two-story homes.
Waypoint Residential later proposed a 180-unit, five-to-seven-story apartment complex. Downtown residents strongly opposed the plan mostly because of its residential density.
Redevelopment Commissioner Matt Owen said via teleconference at the meeting he believes ARC's plan fits in better with surrounding developments than the larger ones considered.
"So hopefully everything will end up blending real nicely," said Owen, who participated in the meeting remotely on speaker phone.
Both developments follow an internal report stating Jeffersonville needs to increase its housing stock by 25 percent in order to meet up with job growth demands.