The city of Mission is reviewing a second request for a tax abatement from a developer wanting to build apartments.
But the plan no longer includes trading a city-owned park for more green space, which concerns some city councilmembers.
In addition, the developers’ requested abatement is more than what city staff recommend.
What’s the latest?
Indianapolis-based developer Milhaus wants to build a multi-building apartment complex near the city’s Powell Community Center on Martway Street.
As part of that, the developer wants to acquire Beverly Park from the city to build some of the apartments on that land.
Originally, the plan called for Milhaus to give the city another plot of land next to a different park nearby to make up for the lost green space.
But during the city’s discussion of Milhaus’ request earlier this month, the developer told the city council that the plan of giving Mission land near one park in order to build some of the development on Beverly Park was now off the table.
Milhaus is also asking the city for an 85% tax abatement — above the 75% cap outlined in city policy — for an apartment complex proposal near Powell Community Center at Beverly Avenue and Martway Street.
No action was taken by the city council at its meeting Jan. 17.
A look at the project proposal and tax break request
Milhaus’s proposal includes:
- 261 market-rate apartment units with no affordable housing aspect
- A 5-story building on the north side of Martway Street and a 3-story building on the south side of Martway
- Green Globe certification for environmental sustainability
- $300,000 to the city as a cash contribution for the purchase of Beverly Park
- Rent ranges are not yet final, but are expected to start around $1,100 a month for a studio and between $2,800 and $3,000 for a three-bedroom, said Devon Coffey, director of development for Milhaus.
Originally, the developer had also planned to give the city land near Andersen Park, 5930 W. 61st St., in order to build on Beverly Park, 5935 Beverly Ave.
But Coffey told the city council on Jan. 17 that the land swap is no longer part of the plan.
Coffey said at a neighborhood meeting, Milhaus received feedback that the shape of the park intended to replace Beverly Park was “not as conducive of a layout.”
City council, mayor press developer on land swap
Multiple councilmembers and Mayor Sollie Flora asked the developer and city staff for more details about the plan for Beverly Park and potential replacement land.
Flora said that if the land swap is off the table, then she would like to see an increase to the $300,000 cash contribution from Milhaus.
Councilmember Trent Boultinghouse said that while he likes pieces of the overall project, it was “hard to swallow the lack of the land swap.”
Boultinghouse said the city needs a plan in hand for how to replace Beverly Park should the project get to the point of city council approval.
“I think we would really lose favor, potentially, with the public — you know, based on just what’s going on in neighboring cities — if we don’t have sort of an equal greenspace plan at the time of presenting this,” Boultinghouse said.
That seemed to be a reference to pushback Westwood has received from some residents for its plan to develop several office buildings on an open green space on Rainbow Boulevard. That plan, approved late last year by the Westwood City Council, does include designs for a new, larger public park nearby.
Here’s a look at the potential tax abatement
- City staff evaluated the project proposal against its recently adopted tax abatement policy, and believes the project warrants a 72.5% abatement.
- The Milhaus proposal meets policy criteria to qualify for the 45% baseline abatement and an additional 15% for its capital investment and 10% for the target area.
- Milhaus receives no additional percentage for attainable housing and 2.5% for environmental design, according to city documents.
- Bruce Kimmel, the city’s financial advisor, said a tax abatement of up to 75% is fiscally justifiable for the project.
Next steps:
- City staff and the developer plan to bring back the item for additional discussion.
- This requested information includes details about the plan for Beverly Park and tax comparisons based on the different abatement percentages.
- The Mission City Council meets on the third Wednesday of the month at 7 p.m., and its committees meet the first Wednesday of the month at 6:30 p.m.
Go deeper: Watch the entire conversation online here.
