(Story updated 7/25 to include comments from city and developer)
The Michigan State Housing Development Authority (MHSDA) is awarding federal tax credits for a planned 73 unit apartment development at the site of the former Jackson Citizen Patriot Building. The award, one of 14 statewide developments totaling more than $13.5 million in tax credits, was announced by Executive Director Earl Poleski today.
The project developer, General Capital Development, is being awarded $1,497,207 in Low Income Housing Tax Credits (LIHTC) for the development of Albert Kahn Apartments.
“Housing tax credits are a critical resource for developers to leverage when planning to rehabilitate or build new, good quality affordable rental housing in Michigan,” Poleski said. “Without this incentive, we simply would not be able to meet the state’s housing infrastructure demands for those who need it the most.”
The planned project includes a new three story building, 73 units of low to moderate income apartments and 4,000 square feet of commercial space. The commercial space would be located in the former lobby and office area of the historic building.
“We’re excited to see this project move forward with support from these tax credits so that we can continue to infill new housing supply downtown,” said Jackson Mayor Derek Dobies. “Because these units will be available to low to moderate income families, we can better ensure that the progress and burgeoning prosperity we’re seeing downtown is shared with families of a variety of income levels.”
In plans presented to the city, the developer intends to build a three story structure that will connect to the back of the current building, extending north to Cortland Street and wrap around the Beffel Lighting building. Similar to the project that relocated Consumers Energy’s corporate headquarters to the former U.S. Post Office building, the development would preserve the newspaper’s former office building. Like the Clair Allen-designed Post Office building, the Citizen Patriot building was designed by another noted architect, Albert Kahn of Detroit.
The City of Jackson has entered into a development agreement with GenCap Jackson Limited Dividend Housing Association LLC and provided a PILOT (Payment in Lieu of Taxes) Exemption. According to the agreement, once construction begins completion is to occur in one year.
The development agreement is contingent upon GenGap receiving the tax credits which were awarded today.
“We were confident we would land an allocation of tax credits, but it always feels great to get the job done,” said Sig Strautmanis, a partner with General Capital. “We are really looking forward to putting the finishing touches on our design for this project. With the Kahn building anchoring the site, there is so much to work with to make this a special urban infill community. It is right up our alley.”
The developer would be required to build a new parking lot behind the new building. Street-side improvements (sidewalks, trees, benches and bicycle racks) would also be requirements of the city and the developer’s responsibility.
According to a release from the City of Jackson, construction is scheduled to begin in December.
The Jackson Citizen Patriot Building was designed by Detroit architect Albert Kahn. Other Albert Kahn buildings include the Fisher Building in Detroit, Hill Auditorium and Burton Memorial Tower in Ann Arbor and, in Jackson: the Blake Building, the Jackson County Tower Building, the former Consumers Power building and the Camp (now City View Lofts) Building.
The Jackson Citizen Patriot building was built in 1927. It housed the offices and production facilities of the newspaper. Printing moved to Ann Arbor in 2008 and offices relocated to One Jackson Square in 2012.
General Capital Group has developed more than 70 projects, including residential, commercial, retail, educational and government. According to the firm’s website, they are the most active developer of grocery-related real estate in Wisconsin.