The Hudson Industrial Development Agency (IDA) is coming to the end of its consideration of benefits for the two apartment buildings being proposed for North Seventh Street. Today, the IDA heard a presentation by representatives of DJH Advisors, the group that did the financial analysis of the proposed project.
report submitted by DJH, which Gossips posted about yesterday. The most significant recommendation of the report was that the PILOT for 708 State Street be amended to make its duration twenty years instead of twenty-five years. When the presentation was complete, it was suggested that the PILOT proposal submitted by the Galvan Foundation be amended to modify the PILOT schedule proposed for 708 State Street. Dan Kent said Galvan was "comfortable with the review by DJH." Mayor Kamal Johnson moved that the IDA accept the recommendation to change the PILOT schedule for 708 State Street. Mike Tucker advised that the next step was to receive an amended application from Galvan.
A public hearing on the project will take place sometime between August 4 and August 11. Gossips will publish the date and time of the public hearing as soon as it is scheduled. A week after the public hearing, the IDA will meet to make its decision.
Some interesting information emerged during the meeting, which took just 38 minutes. The representatives of DJH consistently referred to 708 State Street as "market rate housing." Rebecca Wolff asked why they were calling it "market rate" when "it does have income restrictions." She was told, "We don't know what regulating construct applies to this project." The other building--75 North Seventh Street--is, to quote the DJH report, "a regulated affordable development with LIHTC [low-income housing tax credit] equity."
Wolff also asked about a statement in the report that conversations with the assessor had been "inconclusive." Tucker explained there were only three or four comparable properties in Hudson, and they were all older. Earlier, Anna Marsh of DJH spoke of existing apartments in Hudson being "older and lower construction grade."
Gossips was struck by one bit of information in the report that seems counterintuitive. The construction costs per unit are estimated to be $250,000 for 75 North Seventh Street and $205,000 for 708 State Street. This may be because there are fewer large apartments proposed for the "market rate" building at 708 State Street.
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