Benet Hall revitalization project receives tax abatement

One more step, or more accurately several more steps were taken Tuesday night that will allow the Sisters of St. Benedict to renovate Benet Hall, a former St. Benedict College dormitory, into 15 low income/senior apartments. Each will feature two bedrooms and two baths and a resident rec room will be included in the $2.9 million renovation.

Having St. Benedict Brewery just down the hill may be an added perk.

The Ferdinand Town Council held a special meeting October 7 to prepare for a residential tax abatement that will help make this vision a reality. Carla Naum, with Milestones in Indianapolis, is spearheading the project for the Sisters of St. Benedict. She provided Attorney Bill Shaneyfelt with a check list of items being requested from the Town Council.

Shaneyfelt explained the main emphasis of this tax abatement, as opposed to an industrial or commercial abatement where job growth is a factor, is on improvement to the building, allowing it to be retrofitted for senior housing, although a couple of jobs will be added as well.
Alan Hoffman, CFO for the Sisters, as well as Prioress Sr. Barbara Lynn Schmitz were also in attendance to answer any questions. They, along with Naum, presented all the documents required at this point in the process along with a $750 application fee.

Council President Ken Sicard noted that in the weeks since the idea was introduced, he has heard no opposition to the plan.

An abatement will add several valuable points — points that are necessary to acquire tax credits that will fund the renovation.

Shaneyfelt explained the tax credits are key. Because the Sisters of St. Benedict Inc. is a non-profit entity, a limited partnership must be created and will be known as Sisters of St. Benedict Benet Hall LLC. The 1.13 acre site on which Benet Hall sits will be carved out from the Monastery property and will become for profit, otherwise tax credits would not apply. The tax credits, he said, will be sold to limited partners.

The six year abatement, meanwhile, would provide the Sisters with a 100 percent abatement for the first three years, 75 percent in the fourth year, 50 percent in the fifth year and 25 percent in the sixth year.

Another part of the project is a show of financial support. A score of 10 points will be added if the Town plans to spend at least $25,000 on an infrastructure project within a quarter mile radius. This project could be spread over 2015 and 2016 if desired.

Wastewater Superintendent Roger Schaefer initially scheduled a substantial sewer main rehabilitation project along Alabama and 14th Street for 2017. A similar project for the southwest side of Ferdinand was planned for 2015. Schaefer said he could easily flip the two projects as the costs would be similar and a project was already included in the 2015 budget. Schaefer sought quotes and learned the main along Alabama and 14th would cost $30,569.

Councilwoman Debbie Johnson liked the fact this sewer main project would be an investment that would reap rewards, as future apartment dwellers will become the Town’s utility customers.

Documentation for this will wait for the next special meeting, however, as a 25 foot easement from the Sisters must be signed. Neither Hoffman nor Sr. Barbara Lynn saw this as a problem as all that is needed is a survey already in the works from Ken Brosmer.

Council members also approved signatures on various documents, including Resolution TA 14-3, designating the Benet Hall property as an economic revitalization area and Resolution TA 14 -4, declaring the 50 year old structure an historically significant landmark.

The next step? For the Sisters, that would be relocating the gift shop now situated on the lower level of Benet to the former Marian Heights Academy gymnasium. That move is scheduled for October 19 and 20.

For the council the final steps will come at a special October 27 meeting set for 5 p.m. at Town Hall, when the abatement is expected to be officially approved, as well as the easement.

The application for tax credits is due November 3, but everything appears to be on track to hit that mark.

After the meeting, Naum said she is so impressed with all involved from the Ferdinand community, from the council and attorney to Schaefer and Don Foerster (Plan Commission secretary who has been working overtime and under the gun). Since a project of this magnitude usually takes from six months to a year to mount, getting everything accomplished in less than two months may be nothing short of a miracle.

The council also:

• Scheduled a special meeting for Monday, November 3 at 9 a.m., relating to another residential abatement, this one for Promising Properties LLC to expand the apartment complex on West 9th Street.
• Will meet again in regular session next Tuesday, October 14 at 7:30 p.m. in Town Hall.