The most underused and least dense block in downtown Lincoln will become an apartment complex for almost 600 students after unanimous City Council approval Monday.
The proposed complex, to be built on a parking lot south of the Gold’s Building, will also have first-floor retail that could include a specialty grocery store.
The developer plans to spend at least $46.5 million on the six-story building and the city would use about $8.1 million in tax increment financing for amenities that will help the public either directly or indirectly.
The developer, a partnership that includes a company that has built and operated student apartments across the country, is hoping to attract a specialty grocery store for about half the 45,000 square feet of retail space, said David Landis, director of the city’s Urban Development Department during a Monday night hearing on the redevelopment agreement with the city.
That’s enough space for a Trader Joe-type of business, said Carl Groesbeck, with Argent Group out of Chicago.
Argent and CA, which used to be called Campus Acquisitions, have formed a limited liability joint venture to develop the downtown block, between M and N streets and 10th and 11th streets.
CA, also based in Chicago, has been successful in attracting small-scale grocery stores that work well with a student population, Groesbeck told the council.
Campus Acquisitions has invested about $2 billion in buildings like this, including complexes at the University of Illinois, the University of Michigan and Purdue University, said Landis.
The multi-use building would include 200 two- to five-bedroom units that would have enough room for about 585 students. It would also include a second-story outdoor pool and indoor/outdoor exercise area.
This developer is not asking the city for parking, like many other downtown developers have, said Landis.
They will be digging down in the rubble of an old building under the parking lot for pillars that will be used for the foundation of the building. That lower level will provide most of the 335 parking spots for the building, Landis said.
The developer would like to use a portion of the TIF financing for energy efficiency elements from solar panels to solar shades, according to the redevelopment agreement with the city.
The developer would be using LEED standards but not getting LEED certification, which costs $50,000, Landis said.
The developer is looking at a number of ways to have energy conservation and responsible green development, including harvesting rainwater for landscaping, said Groesbeck. They will also be using quality material on the outside and enclosing truck docks.
“In general we have tried to be conscious of the environment and are hoping to add to it tremendously with this project,” he said.
“When you compare it to what we have now it will be a vast improvement,” said Landis.
The city plans to reserve about $811,000 in TIF funds for projects in the city right-of-way near that block.
It might be used for protected bike lanes, for rain gardens, for the bus terminal, Landis said.
The City Council would not vote on these specific projects, Landis said, in response to a question from Councilman Jon Camp about council control over the city projects.
TIF bonds are used for improvements that have some public benefit from widening streets to energy conservation.
The city then uses property tax revenue from growth in the property value due to the redevelopment to pay off bonds over a 15-year period.
The council approved changes in the comprehensive plan and the redevelopment agreement Monday night.
A vote to approve the TIF bond is scheduled for the council’s next meeting Jan. 6.
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