GAINESVILLE – Private investment momentum is beginning to build for redevelopment of Gainesville’s midtown area, an area in need of revival.
Gainesville Special Projects Manager, Jessica Tullar, told city council members at their work session Thursday morning, “I’m here about some really exciting news…a whole entire block, about 4-acres…developers have purchased the property and they decided to demolish the thirteen structures - they were quite run down, some of them irreparable - and they decided to build back, in its place, 45 townhouse-style rental apartments”
The block to which Tullar refers is bordered by Martin Luther King, Jr., Boulevard as well as Pine, Davis and Wills Streets.
“It’s that piece, that residential piece, that we have been looking for in the midtown redevelopment plan since we put (it) in place back in the 2000s,” Tullar said.
To be known as “The Enclave”, Tullar and Community Development Director Rusty Ligon believe this project could be the start of more redevelopment projects for the area.
Ligon said with enthusiasm equal to Tullar’s, “You’re talking about an entire block of redevelopment and what that can mean for the rest of that area.”
Steve McKibbon heads up Pine Davis, LLC, developer of the site, and he estimates construction of “The Enclave” at $6-million.
So McKibbon is requesting the financial assistance of the city through TAD, or Tax Allocation District, funding.
McKibbon is requesting TAD funding for just over $769,000: $300,000 up front for demolition, grading and asbestos remediation, with the remaining $469,058 to be paid to Pine Davis, LLC, annually from the actual increment generated by the redevelopment project.
“It’s self-financing: once it’s redeveloped the increment that this project is going to generate is going to more-than-cover what they’re asking for within a fifteen year period,” Tullar explained.
Tullar says following conversations with McKibbon she expects each of the 3-bedroom, 2-bath units to rent for roughly $1000 per month.
Tullar explained that Pine Davis, LLC, is basing their projected return on investment at 6-percent. Tullar added most banks would not approve financing for a developer to construct such a project unless eight to ten percent minimum was the projected rate of return.
Ligon echoed Tullar’s statement, “This is an over-$6-million dollar investment that they are making. We need to realize how lucky we are; I don’t think there is another developer out there that would do this.”
“It’s much more of an investment on their part than on the city’s TAD financing,” Tullar added.
Tullar said it has been within the past six months that McKibbon approached the city about the financial arrangement
“Since 2001 the City of Gainesville…has been doing public investment…but this is the first private investment on this scale, and I think it is going to be setting the stage, the momentum is getting started with this. (Now) other people are talking to us about other properties for residential purposes,” Tullar said.
Could this be the start of midtown becoming a prime real estate location within the city?
Tullar responded, “We believe so, yes, we believe so.”
The resolution for funding will be discussed at Tuesday’s city council voting session.
http://accesswdun.com/article/2017/3/513399/gainesville-officials-say-private-investment-beginning-to-appear-for-mid-town-redevelopment-projects