Huntingburg Council approves tax abatement for Poplar Ridge development
The Huntingburg City Council has approved a tax abatement for the Poplar Ridge apartment development, paving the way for a significant housing project in the city’s northern area.
Here is a story on the project.
The council voted unanimously to designate the property as an economic revitalization area and an economic development target area, granting a five-year, 100% tax abatement for each of the project’s three phases.
Developer Ruger Kerstiens presented the project, which will consist of a mix of one-, two-, and three-bedroom apartment units and be built in phases. The first two phases each involve an investment of $6,072,381 to create 48 units in each phase, while the third phase will see an investment of $3,795,238 for 30 townhouse units.
Scott Steinkamp was also in attendance at the meeting. He is a partner in the development.
The project is expected to begin in March, pending all necessary approvals. Kerstiens also shared positive news regarding a READI 2.) grant application, which has advanced to the state level for review by the Indiana Economic Development Corporation.
“That gives us a very good chance of receiving those funds so that this tax abatement, if granted, would then serve as a local match and allow us to receive that grant, which altogether is how this project works,” Kerstiens said.
The development will be similar to a project recently completed in Washington, Indiana. Kerstiens noted that residents there “absolutely love the layout” of the apartments, which feature larger square footage than typical units.
The tax abatement structure is designed to allow the project to remain financially feasible as it progresses through its phases. Kerstiens presented a chart showing the land-based tax revenues that will remain intact throughout the project, as well as projected future tax revenues.
“This project is not negatively impacting the current tax base. That existing tax base is staying intact,” he emphasized. “This is just showing what you’re gaining through the delayed gratification by granting the tax abatement.”
By 2048, the total tax base from the development is projected to reach around $4 million, according to Stein’s conservative estimates.
The first two phases each involve an investment of $6,072,381 to create 48 units, while the third phase will see an investment of $3,795,238 for 30 units.
Steinkamp also hinted at future development plans for the area surrounding the hospital, which they own.
“We’re looking to another class of property out there, probably 20, 30, start looking at that next step,” Steinkamp told the council. “We really want to try to take that northern part of town that kind of struggled for as long as I can remember, take and try to turn that around and make it a very good addition to town.”
The developers noted changing trends in housing preferences, with younger people increasingly opting to rent rather than buy homes.
Construction on the Poplar Ridge development is expected to begin this spring, with the goal of having buildings framed up and enclosed before winter.
