The Village Board voted to form a Tax Increment District agreement with Oregon Apartments, LLC, to move the $7 million Rosewood Avenue apartment project forward Monday, Jan. 20.
Adam Coyle, on behalf of Oregon Apartments, LLC, met with the board to discuss the business’s request for $464,000 in Tax Increment Financing to cover 5.4% of the total cost of the development.
The board examined a review of the TIF request from financial consultant Ehlers, which stated roughly 20% of the project would be covered by equity and around 80% from the combination of the assumed TIF funding and a mortgage. Overall, it satisfies the “but for” test required for every TIF project – it wouldn’t happen “but for” the funding.
The review explored two scenarios: A developer base case and an Ehlers adjusted case. In the first, the TIF money would be paid back by Oregon Apartments, LLC in seven years, while the next scenario added a year. Both are on pay-as-you-go basis.
The calculations derived for the project reflect the current market, the review stated. In either scenario, the project returns are well within or lower than expected market ranges and subject to economic assistance – they both support the TIF request.
Trustee Cory Horton expressed some hesitance in moving the request forward, saying TIF assistance would be best spent if the project had an affordable housing component.
Trustee Amanda Peterson said the project would be good for the community, as housing in Oregon is tight.
“This is a low risk option that is going to turn out great and help us grow,” she said.
The 56-unit apartment project at 124 Rosewood Ave. will be three stories, public works director Jeff Rau told the Observer in an email in November 2019. Construction is planned to begin this spring and finish by spring 2021.
The site implementation plan features 52 underground parking spots and an exercise and community room on the ground floor of the complex.
It also shows an “urban appearance,” a developer letter stated, with a flat roof and a brown, beige and grey color scheme. Each ground floor apartment would have a patio and each unit on the second and third floor will have a balcony.
Located west of the year-old Sleep Inn and Suites hotel, Rosewood Avenue is an area in significant need of apartments, Rau said in November.