Photo provided. An artist’s rendition of the Rubicon project, a planned five-story, 120-unit apartment building that would cause the demolition of a drive-thru bank at 921 Jackson St. and house with historical ties at 1008 Washington St.
Photo provided. An artist’s rendition of the Rubicon project, a planned five-story, 120-unit apartment building that would cause the demolition of a drive-thru bank at 921 Jackson St. and house with historical ties at 1008 Washington St.
COLUMBUS — The Columbus City Council has approved authorizing a direct loan to Bloomington-based Rubicon Development, who asked for a city subsidy of $6.4 million as a forgivable loan to cover a financing gap for its $30.9 million five-story mixed-use apartment development at 11th and Washington streets.

The vote was 5-3, with council members Grace Kestler, D-at large, Jerone Wood, D-District 3 and Jay Foyst, R-District 6 voting against. Council member Chris Bartels, R-District 1, was absent.

During the last council meeting on Dec. 3, members approved a project agreement for the development, which would include 120 apartments, commercial space and a parking garage on three parcels at 921 Jackson St. and 1008 and 1020 Washington streets. Rubicon also developed St. Barts Apartments.

That vote was 5-2, with council members Bartels, R-District 1, and Kestler, D-at-large, voting against.

Council members in favor of the project view it as a means to revamp a gateway into the city and the 120-units it would bring as helpful in working towards reaching needs for housing identified in the city’s housing study, while also potentially helping activate downtown.

According to site plans, the development would include a ground floor with 51,000 square feet for parking and 5,300 square feet of first-floor commercial and tenant common space.

Floors two through five will be 32,000 square feet each for residential space, including eight three-bedroom units, 40 two-bedroom units, 48 one-bedroom units and 24 studio units.

Studio units would be $1,320 per month, one-bedroom units $1,435 per month, two-bedroom up to $2,167 per month and three-bedroom units up to $2,376 per month, according to Rubicon.

The developer will designate 10% of the building to be reserved for workforce housing, factored at a 20% discount. Rubicon representatives have said they define workforce housing as for those making between 80% and 120% of area media income (AMI), which is about $72,000.

Redevelopment financial adviser Andrew Lanam said the $6.4 million coming from the central tax-increment financing (TIF) district would be recouped in 21 years. Lanam added that the current assessed value of the three parcels as of this year was $464,000 and projected assessments will reach as high as $15 million if and when the project is built.

As has been done for other mixed-use developments in recent years, including The Taylor and the development at Sixth and Washington streets, the city is creating separate TIF bounded by the project site. This is to capture expected increasing property taxes generated in the area due to the development.

Redevelopment also commissioned a return on investment analysis over the span of the 25-year life of the new TIF, done by Ed Curtin of CWC Latitudes LLC.

According to Curtin’s analysis, with the $6.4 million the city is providing, it would receive nearly $159 million in “ancillary benefits” over the life of the TIF, almost a 25-to-1 return. The project would also generate $336,467 in new taxes annually, according to Curtin.
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