A city-subsidized condominium development officially has its funding.
The Redevelopment Commission approved Monday a development agreement for Renaissance on Main Street, a layout of 23 condominiums in the old Downtown JC Penney building, and OK'd a resolution providing $441,250 in city funds for it.
The infusion of money from the Capital Development Fund, consisting of advance Casino Aztar lease payments, is part of a $2.2 million JC Penney building overhaul planned by The Kunkel Group Inc. of Evansville. The plan for the condominium development and for city financial support was announced last week by Mayor Jonathan Weinzapfel.
City money for the project will come in the form of a $220,000 in-advance grant and a $221,250 low-interest loan.
Payments on the loan are due as condo units are sold or leased. The Kunkel Group, headed by architect Ben Kunkel, is financing the remainder through United Fidelity Bank. Chuck Harper, sales and marketing director for the developer, told the Redevelopment Commission on Monday that in addition to nine "pre-sold" units, the company sold two more units last week and expected to close on "five or six more" by the end of this week.
The grant portion of city funds for Renaissance on Main Street, calculated at roughly $10,000 a unit, compares with the current loft apartment subsidy program that has been offering $20,000 "loan" that becomes a grant when units are occupied. That program will end Dec. 31. A developer whom Department of Metropolitan Development officials declined to identify is expected to petition the Redevelopment Commission next Tuesday for the remaining $33,750 in the loft program.
Loft grants were initiated in early 2004 with $250,000 from the Capital Development Fund. A second $250,000 allotment was appropriated in the fall of that year.
