Mission is eyeing lots near the Rock Creek Trail for a new park — and a 75% tax abatement for a multi-family developer.
City staff is recommending a 75% tax abatement for Milhaus, a developer that wants to bring an apartment complex near Powell Community Center.
The developer scrapped a previously discussed land swap for the intent to build on Beverly Park. Instead, the developer is now paying the city an additional $200,000 cash contribution, effectively purchasing the site of Beverly Park from Mission for a total of $500,000.
A public hearing regarding the tax abatement request is scheduled for Feb. 21 at City Hall.
Mission now plans to more than triple its green space
When Milhaus first proposed in the fall of 2022 to build the apartment complex on both sides of Martway Street near Powell Community Center, the plan was to pay the city $300,000 and swap land nearby to soften the blow of building on top of Beverly Park, a small public green space on Beverly Avenue betwee Johnson Drive and Martway Street.
Devon Coffey, director and developer with Milhaus, told the Mission City Council last month that the land swap was no longer part of the deal but hadn’t het agreed to give the city more money in exchange for building the apartments on the park.
City Administrator Laura Smith on Feb. 7 told the city council’s finance and administration committee that Milhaus has now committed to increase their cash contribution for Beverly Park to $500,000.
Additionally, the city is looking to designate 1.35-acres of city-owned land surrounding the Rock Creek Trail — on both sides of Outlook Street between Johnson Drive and Martway Street — near the Mission Market as park land.
This would more than triple the city’s green space, Smith said, since Beverly Park is only .43 acres.
Developers increase cash payment to $500K
City staff previously landed on a 10-year, 72.5% tax abatement for the Milhaus development.
The additional $200,000 cash contribution from developers led city staff to increase the community benefit portion of the abatement add-ons from 0% to 2.5%, Smith said.
This resulted in a recommended 75% tax abatement, the highest tax abatement a developer can receive under the city’s policy approved just last year.
Milhaus plans to build 261 units across a two-building apartment complex.
Rents are anticipated to range from nearly $1,400 for a 525-square-foot studio apartment to $2,300 for a 1,082-square-foot, two-bedroom apartment, according to a memo from developers.
The committee reacted positively to the latest updates
Councilmember Hillary Thomas said that based on her quick math, it looks like the city is abating $700,000 over 10 years. At the same time, the city is getting an upfront cash payment of $500,000 from the developer’s contribution.
Thomas said that is “an obvious opportunity” before even looking at the positive cost-benefit analysis city staff presented last week.
Councilmember Ben Chociej agreed with Thomas, and said there are “a lot of things about this I think makes sense.” He said he cannot see the project as it stands “being a net burden on taxpayers.”
Others like Councilmembers Trent Boultinghouse and Mary Ryherd said they were excited about the proposed park area, which is near the Mission Market and the city’s downtown area along Johnson Drive.
Next steps:
- The city plans to host a public hearing on the prposed tax abatement on Feb. 21 during the city council meeting.
- The city council meets at 7 p.m. at city hall, 6090 Woodson St.
- If the city moves forward with the idea for the replacement of green space, then the city needs to publish notice regarding the “potential disposition” of Beverly Park for two consecutive weeks, according to city documents.
Go deeper: Watch the committee’s discussion of the tax abatement request here, starting at 48:44.
