A project is nearing the start of construction of converting a vacant building into apartments in Jefferson.
The Jefferson City Council at their most recent meeting on April 22nd approved to move forward with objectives to provide the opportunities for financing that it first established in 2021 with a letter of intent to aid in the renovation of the former Greene County Middle School and turning it into 25 apartments. Developer Chris Deal was looking for the Council to reaffirm its position from 2021 to provide a $300,000 forgivable loan agreement and a ten-year tax abatement.
City Administrator Scott Peterson says the city has historically offered a $150,000 forgivable loan and has not coupled those kinds of projects in the downtown area with a tax abatement. He points out that the majority of the Council agreed that this project that started over six years ago, was the largest scope of a project that they hadn’t seen before.
“$8 million project to create these 25 apartment units which then probably allows people to move out of their homes in the community (and) to maybe move there if say, if it ends up being a retirement area. And frees up those additional homes in the community. And you get all of the positive spin-offs that come along with it.”
Peterson notes another step that the Council also agreed to move forward with was expanding its Urban Renewal Plan to include the middle school area that can utilize tax increment financing (TIF) funds.
“But this would be a TIF district based on blight. So it’s a little unique that you would create a TIF district and couple that with tax abatement because there basically is not TIF benefit then for those first ten years. But this is dealing (with) long term again, about looking at year eleven. Then it maybe does have the opportunity then for some potential funding for say future enhancements in the area. Just thinking, really long term.”
Deal stated at the Council meeting that the property is currently tax exempt because it is owned by the Greene County School District. However, Deal noted that once construction starts, it will be under their LLC and start generating tax revenue immediately and once construction is complete, then the ten-year tax abatement takes effect. He also mentioned that the gymnasium was required to remain in place for five years, but it could be a separate, stand-alone structure, which was a stipulation by the State Historic Preservation Office. The Council approved to move forward with a vote of 4-1, with Council member Chad Sloan as the lone no vote. Deal added that this was the last financing step needed in order for construction to begin, which was slated for some time this summer and the project would take about one year to complete.