New Development Planned for West Woodlawn Community
The authorization to execute a multi-family loan agreement with 63rd Maryland, LLC and execute a TIF redevelopment agreement with 63rd Maryland, LLC for the construction of Park Station in the West Woodlawn Community was passed by City Council today. Additionally, the ordinance allows for the transfer of Illinois Affordable Housing Tax Credit (Donation Tax Credits) proceeds generated by the sale of these tax credits, sale of cityowned parcel(s) for $1.00 per parcel, and designate 63rd Maryland, LLC as a TIF developer. The Park Station development will be a newly-constructed five-story elevator building with 58 mixed-income rental units; two units will be one-bedroom live/work “loft-style” units on the first floor. Other building amenities include tenant community space, ground floor commercial space, 40 off-street parking spaces, bike storage, a leasing office, and business center. In addition to community space on the first floor, there will also be a fifth-floor roof terrace for tenant use.
Total development costs are approximately $31,798,366, and the City will provide multifamily loan funds up to $6.5 million, 9% Low Income Housing Tax Credits (LIHTC), which will raise equity of approximately $18,667,734 for the benefit of the transaction, Illinois Affordable Housing Tax Credits (Donation Tax Credits) of $660,000 which is to raise equity of roughly $597,300 for the benefit of the project, and City-owned parcel(s) for $1.00 each. TIF funding of $5 million will represent 16% of the financing and will be used to pay for or reimburse the developer for TIF eligible project costs. Additional funding will consist of a first mortgage of approximately $765,820 and a ComEd energy grant of $166,105. The City will have a mortgage lien position on the properties.
The development team is a joint venture between DL3 Realty and The Michael’s Organization (the “Developers”). DL3 Realty is a local minority-owned real estate development firm formed over 30-years ago, focusing on revitalizing the commercial landscape of the far south side of Chicago. Since its inception, DL3 Realty has become a nationally recognized full-service real estate firm completing over 212,000 square feet of retail, office, grocery store, and medical spaces.
Headquartered in Camden, NJ, the Michaels Organization was founded in 1973 and is known for being a national leader of affordable housing, having developed mixed-income, mixed-use structures in 35 states plus Washington D.C. and the US Virgin Island, which has provided over 55,000 units across 425 communities.
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