New $11 million housing development planned for St. Joseph’s Hospital property

The developer of The Lofts at St. Joseph’s in Huntingburg has proposed an apartment complex and townhomes for another area of the former St. Joseph’s Hospital property.

Pete Schwiegeraht with MVAH Partners of Cincinnati approached the Huntingburg Common Council with the company’s plans at Tuesday’s regular meeting. MVAH Partners was split from Miller Valentine, the company that created The Lofts at St. Joseph’s as well as the Vine Street Lofts in Jasper. MVAH Partners will handle the affordable housing production and operation portion of Miller Valentine.

According to Schwiegeraht, the senior living apartments the company created in the northern wing of the building were just the first phase of development on the property. Now the company plans on creating 56 units comprised of apartments in a three-story building and townhomes running adjacent to Leland Drive on the properties northwest corner.

The apartments will largely be two-bedroom units and the townhomes will be three- and four-bedroom units about 1,400 square feet in size with full amenities like laundry facilities. He added that the townhomes will be able to be purchased.

He explained that the company’s plans shouldn’t compete with the housing development in Hunters Crossing.

“We still do feel there is need,” Schwiegeraht noted adding that the market studies indicate the focus should be on larger units.

Along with discussing the potential for the estimated $11 million development, Schwiegeraht explained the company would be partnering with TRI-CAP and seeking rental housing tax credits through the state. To be competitive in acquiring the tax credits, MVAH is asking the city to commit to the project financially through programs like property tax abatement, infrastructure development like upgraded sidewalks as well as direct funding.

The Lofts received about $350,000 in financial incentives in the form of infrastructure improvements as well as tax abatement and economic development income tax dollars from the City of Huntingburg. The Dubois County Council added $100,000 in economic income tax dollars to that project at the request of Miller Valentine.

For the new development, Schwiegeraht hinted the company could include some more amenities to increase the return on the city’s potential investment in the new development.

Mayor Denny Spinner noted the city has designated the area an economic impact zone to facilitate the city’s investments. He added that the state has created opportunity zones designed to attract capital investment under Governor Holcomb’s administration and housing is one of the targeted developments in these opportunity zones.

To be designated as an opportunity zone, the area must be considered a low-income area or have a poverty rate of at least 20 percent — Dubois County has a poverty rate of about 23 percent, according to the state, and thus qualifies to create one of these tracts.

“This may be the first realization of us taking advantage of that designation,” Mayor Spinner said.

Schwiegeraht noted the new designation’s opportunities are still being studied by private investors but it added a new element to the attractiveness of the development.

Moving forward, Schwiegeraht explained the council would need to create a letter of intent before the company submitted the application for the tax credits to the Indiana Housing and Community Development Authority. The application is due by July 31.

The letter of support, depending on the city’s investment in the development, could add up to two and a half points to the scoring on the highly competitive tax credit awards.

The company has been successful in acquiring these tax credits for the three developments it has completed or has underway in the county. A proposed Phase II expansion of the as yet unfinished Vine Street Lofts, a senior living complex on Vine Street in Jasper, was not awarded the credits.

The council told Schwiegeraht they were interested in continuing talks regarding the city’s potential for supporting the new development. They also indicated they could meet the state deadline to assist in the tax credit application.

Councilman Jeff Bounds noted that despite the naysayers that come forward when developments like this are announced, these companies have invested energy into market studies to ensure the potential for successfully selling or leasing these units is there.

“If you go out there and look at Hunter’s Crossing there are new homes going in and people living there and other facilities are at capacity,” he said. “I think the overriding idea is that you all wouldn’t come here and propose a project that you expect to fail; that it would sit half occupied.”