Economic development could be coming to New Castle by way of affordable housing.
Corey Murphy, president and CEO of the New Castle-Henry County Economic Development Corp. (EDC), told the New Castle City Council about a potential new apartment complex Monday.
The possible $15 million investment would build 54–60 unit apartment complex at the northeast corner of New York Avenue and Emerson Avenue, south of the Henry County YMCA.
The developer, RealAmerica Development LLC, has two dozen apartment complexes in Indiana and two in Colorado. Murphy and a small contingent of New Castle representatives visited the Haven Homes development in Plainfield on June 11.
The other local reps were New Castle Mayor Greg York, City Council member Jerry Walden, New Castle Planning Commission President Ed Hill and New Castle Redevelopment Commission (RDC) President Scott Hayes.
Walden said the Haven Homes property included amenities for residents, including a dog park, a playground and a clubhouse, as well as a full-time maintenance staff and full-time security.
“It was really nice,” he said.
“I was impressed with the property,” Murphy said. “I think something like that would be a real nice fit for our community.”
Murphy plans to ask the RDC at its July 24 meeting for a letter of support to be a part of the application.
“If they approve it, that letter of support will state that the city will use its best efforts – this isn’t a guarantee – but it will use its best efforts to allow the developer to utilize a developer-backed tax increment finance bond, as an incentive on this project.”
Tax increment financing (TIF) captures property taxes on a newly developed area to repay the bonds (loans) used to develop the area in the first place.
The New Castle City Council has final say on any TIF application.
“Before I wrote a letter saying we would ‘use our best efforts,’ I wanted to check in with you,” Murphy told the council members. “I don’t necessarily need action tonight, but between now and July 24, if you have concerns or issues, please let me know. Otherwise, I’ll be proceeding with this course of action to support this project.”
Murphy said “developer-backed” means this project would not cost the City of New Castle any additional funds.
“Essentially, ‘developer-backed’ means the city is giving the benefit of that property’s taxes over a negotiated benefit of time,” Murphy said. “In my opinion, it’s a little bit more efficient than an abatement.”
He said the developer would also pay the cost of issuing the new bonds.
Murphy said the project’s primary financing mechanism would be a tax credit through the Indiana Housing and Community Development Agency (IHCDA). Because of this, there will be a review of the income for potential tenants of the property and there will be an upper threshold to that income.
Fifty percent of the proposed units would be available to 80 percent of area median income (AMI). Murphy said a single person at 80 percent AMI would be earning $45,440 and a family of four would be at $64,880.
“This would be of service to a broad cross-section of our community,” Murphy said. “I think it is worthy of pursuing this development.”
Council President Rex Peckinpaugh said an option like this “would be very helpful to those people who, honestly, cannot afford what nowadays they call ‘affordable housing.’”
Walden said this development could also provide housing for new nurses and teachers coming out of college, groups that local industries are eager to hire.
If the IHCDA tax credit is awarded in November, construction could begin in early 2025, Murphy said.
READI 2.0
Murphy also gave a brief update on the Regional Economic Acceleration and Development Initiative (READI 2.0) 2.0 program.
READI 2.0 is a state program to fund regional projects. The East Central Indiana region, which includes Henry County, was awarded $35 million.
Each project that was submitted during the application is providing additional information to make sure the scopes and goals align with the state vision.
Murphy emphasized Monday that Henry County projects are not guaranteed any of that funding.
“The region and the state, they are funding the projects with the most impact,” Murphy said.
Murphy and Jennifer Fox, director of the Henry County Community Foundation, represent Henry County on the regional steering committee. The steering committee is inviting three elected officials from each county to help score the projects.
“To receive READI money, there has to be local support,” Murphy said.
There is also additional funding now through the Lilly Endowment to support projects that help either arts & culture or blight reduction. The application deadline for those projects is Aug. 2.
Find more information online at https://forgeeci.com/lei-grants/.
PreservINg grant update
Emily Hurst of New Castle Main Street update the council Monday on the $2 million PreservINg Main Street grant the city received in 2023.
New Castle Main Street selected Architecture Trio as the firm to renovate the façades of six historic buildings in downtown New Castle.
Hurst said the architectural renderings will help determine the scope for each of the buildings. The building owners are covering the $30,000 cost for the renderings.
Hurst explained that the way the PreservINg grant works, the City of New Castle serves as legal entity on all contracts and payments; the renovations matching funds will be paid by the private building owners, however, not from city taxpayer dollars.
Main Street is planning public hearings in conjunction with the Aug. 19 and Sept. 16 city council meetings. The city council will consider a resolution during their Oct. 21 meeting approving the grant matching funds.
The city council approved proceeding with the contract from Architecture Trio, 6-0; council member Aaron Dicken was not at Monday’s meeting.
Hurst said the total PreservINg Main Street process will take about 3.5 years. Along with historic restoration, the grant is also funding community workshops about historic preservation and a StoryFest event in September.
A previous announcement from Main Street stated that seven buildings were going to be included, however one of the Broad Street building owners decided not to participate.
The next New Castle City Council meeting is 6:30 p.m. Monday, July 15 in council chambers, 227 N. Main St.
– Story by Travis Weik (Editor@TheCourierTimes.com) of The Courier-Times. Read more local stories at TheCourierTimes.com.