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April 21, 2000Building 50 plan hinges on three funding sourcesGT Commons officials are optimistic about latest proposalBy BILL O'BRIENRecord-Eagle staff writer TRAVERSE CITY - A federal grant, state housing tax credit and a local loan from Rotary Charities are the three keys to the latest redevelopment plan for historic Building 50 at the Grand Traverse Commons. The Commons board Thursday night met with a representative of American Pacific Properties Inc., an Oregon-based development firm investigating the potential redevelopment of the former state hospital administration building. American Pacific is proposing renovating much of Building 50 into a 120-unit affordable, indepedent-living housing development for people age 55 and up. But those plans hinge on three major funding sources falling into place for the developers, including: - Approval of a $1 million grant from the "Save America's Treasures" program administered by the federal Department of Interior which is being sought by the Commons board. Those grants awards will be announced in late June. - Approval of various tax credits through the Michigan State Housing Development Authority (MSHDA) for developing moderate-income housing, and historic tax credits for preserving the original portions of the massive building. - A loan for the project from the locally-based Rotary Charities organization, which the Commons board formally agreed to seek Thursday night. "If the (federal) grant is awarded, I don't think there would be any (financial) shortfalls," said Robert Gibson, a development manager for American Pacific. "It's a very important project for our company. I hope it goes ahead, because it's a beautiful building." Gibson declined to comment on specific development costs for the project, but others associated with Building 50 estimate the work at upwards of $15 million. Commons officials also wouldn't disclose how much they'll ask for in a loan from Rotary Charities, but said the main purpose is to involve local funding in the project to improve the chance of getting state tax credits for the work. "It's not as much the dollars as it is for the community support," Commons board chairman Dan Tholen said. While several potential development plans for Building 50 have come and gone over the past decade, Commons officials are optimistic about the latest proposal. The developers have already met with Rotary officials to discuss the loan, and state housing officials are said to be receptive to the plans so far. That would leave the $1 million federal grant as the final piece to the financial puzzle. Another factor which Gibson said was "key" to renovating and marketing the site is its recent designation as a state Renaissance Zone, meaning that residents of the project could live there without state or local tax liability through the year 2015. Any income taken in by developers when the units are rented or leased would also be exempt from state taxes. Gibson said developers should have their financial questions answered by late summer, and if all goes well, renovations could begin next spring. The Commons board also met Thursday night with the representatives of the Botanical Garden Society of Northwest Michigan. The group is looking at a 20-acre site around the old power plant building at the Commons as a potential site for the garden's development, which the group estimates could bring close to 200,000 visitors a year. The board also reviewed a preliminary road and parking plan as it continues to work on upgrading the infrastructure of the campus. It also agreed to a $33,000 contract with the Traverse Group to develop a brownfield plan for the Commons. Officials said that anticipated expansion of the state's brownfield program by the Legislature this summer could make much of the campus eligible for brownfield incentives. Read more about the Building 50 saga. |
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