A large affordable apartment complex could be coming to the former Western Rubber site in Goshen after the Goshen Common Council approved an economic development revenue bond for the project Monday night.
The $31 million Ariel Cycleworks project is being proposed by developer Anderson Partners. It would contain about 138 apartments and serve as “workforce” housing, meaning the vast majority of units would go for $900 to $1,400 a month — about 60 to 120 percent of area median income — and a portion would be set aside for rent by essential workers.
The proposal also includes 5,000 square feet of commercial space and a connection to the 9th Street bicycle greenway.
And because of the Western Rubber site’s status as a brownfield, it incorporates extensive green infrastructure and stormwater infrastructure to properly manage runoff.
The $4.42 million economic development revenue bond will be completely backed by a special 25-year tax increment financing district, or TIF, which means property tax revenue will go towards project infrastructure.
Multiple council members and public commenters said Goshen needs more housing, and that the project will provide that.
However, others expressed concerns about increased traffic, parking issues and the structure of the tax incentive — mainly, whether the TIF should be at 75 percent for 25 years as opposed to 100 percent.
But in the end, the council moved the project forward, voting 5 to 2 to approve the $4.42 million dollar bond.
That approval means Anderson Partners will begin developing a finalized plan for the site, and the city will start work on issuing the bond and creating the tax district.
Each step will come back before the council for approval, and the developer hopes to begin construction by the end of 2022.
Outside of the bond and accompanying TIF, other major funding sources include federal Housing and Urban Development dollars and a potential $5 million READI economic development grant from the South Bend-Elkhart Regional Partnership and.
Contact Jakob at jlazzaro@wvpe.org or follow him on Twitter at @JakobLazzaro.
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