NEW ALBANY — On the periphery for seven years, a multimillion dollar, mixed-used development in downtown New Albany still has the potential to come to fruition.
The New Albany Redevelopment Commission agreed to extend the purchase option on a Bank Street property near the Main Street intersection for a group that has previously been under the title New Albany Horizons.
In 2008, New Albany Horizons proposed a $30 million residential and commercial development that would include the city-owned parcels. The redevelopment commission agreed to sell the land to New Albany Horizons for $107,500, with the initial final payment to be made in 2012.
While the group has continued to pay taxes and interest on the property, a sale hasn’t been finalized. The commission agreed Tuesday to extend the interest-only payments for two years, but due to a new appraisal, the sale price was changed to $137,000.
“They’ve been excellent payers on the interest-only payments to date,” said David Duggins, director of economic development and redevelopment for the city.
The extension was agreed to by both sides. Carl Holliday, a partner in New Albany Horizons, said the economy affected the progress of the project when asked why the development hasn’t launched.
“We’re still trying to find an investor, a developer, to bring it out of the ground,” he said.
FIRM HIRED FOR BOND COUNSEL
Crowe Horwath, which has represented the city on several tax-increment financing-related projects, was hired by the commission Tuesday to handle the pending bond negotiations for the apartment project at the former Coyle auto site.
The 157-unit, $16 million apartment project hinges on the final approval of a $3.3 million state tax credit. The state has given preliminary approval for the credit, and a final decision will be made next month.
As part of the funding, the city would agree to include the Spring Street property in a TIF district. The extra levies generated from the development would be used to pay off the TIF bond the city would issue for the project.
Duggins stressed the city wouldn’t subsidize payments for the developer, Flaherty & Collins Properties, by issuing the bond.
“That bond is only generated by what’s generated in the new project,” he said.
The commission’s contract with Crowe Horwath is for $45,000, and the sum is only paid if the bond is issued.