MISHAWAKA — The city council voted 8-0 Monday to approve an $11.25 million bond to help an Indianapolis developer build apartments, restaurants and a parking garage that will consume two vacant city blocks south of Beutter Park.
If the city didn’t chip in for the project, “Rent levels would be through the roof,” said Brian Prince, who’s overseeing the project as a staff member of the developer, Flaherty & Collins Properties.
Prince said he’s confident about landing restaurants and retail on the first level of the Mill at Ironworks Plaza, given the 232 apartments that would go with it. He said there have been several negotiations but nothing signed yet.
“I’m glad you’re optimistic, because I’m not that optimistic,” quipped council member Dale “Woody” Emmons, D-1st.
The large company has built several similarly large, mixed-use buildings — almost always with financial aid from the community. It also will use about $5.26 million from the state’s Regional Cities Initiative and about $30 million from the company. Construction could begin in July with more than 400 construction jobs during the two-year build, Prince said.
The city would pay back the bond solely with tax increment financing that it yields from the building, which the company is guaranteeing will generate at least $580,000 per year, said Phil Faccenda, a local attorney who’s serving as counsel for the bond.