Vine Street housing projects on rise

Jim O’Neal, WITZ AM/FM News Director contributed to this report

Over 110 workforce development housing units and up to 80 senior living units are now planned for former factories on Vine Street in Jasper.

The first phase of the Jasper Lofts received approval for a tax abatement at Wednesday’s Jasper Common Council meeting. The original plans — now being called Phase I of the Jasper Lofts — for the former JOFCO building had about 138,000 square feet of the building being converted into 67 housing units by Cincinnati developer, Miller-Valentine Group.

The Jasper Economic Development Commission reviewed and recommended the project be approved for a ten-year tax abatement and the council concurred Wednesday. Through the abatement, the property taxes on the development will be 100 percent abated for the first seven years; 75 percent for the eighth year, 50 percent for the ninth year; and 25 percent for the 10th year.

After the council approved the abatement, Pete Schwiegeraht, a representative of Miller-Valentine Group, revealed that the group is expanding the workforce development project with an additional 40 units in a planned Phase II for the Jasper Lofts. The addition is expected to cost about $8 million.

In February, Miller-Valentine received $1 million in tax credits from the Indiana Housing and Community Development Authority (IHDCA) for Phase I. According to Schwieraht, they will pursue a similar tax credit for Phase II of the Jasper Lofts and will apply for those credits this fall.

As part of the construction of Phase I, about 30,000 to 50,000 square feet of obsolete space will be demolished to make way for parking.

Then, in a surprise announcement, Schwiegeraht told the council that they are in final talks with the owners of the Monster Recycling facility with plans to purchase the property to be developed into a senior housing project.

“When we did our market study, the need for workforce housing jumped off the page,” Schwiegeraht said. “But, right behind that was senior housing. While you have great job growth and certainly the need for workforce housing, you’re fastest growing demographic is the senior population.”

Schwiegeraht told the council the company has an executed letter of intent and a purchase agreement with the building’s owner, Paul Voegerl Sr. They are hoping to have a signed agreement in place by the end of this week.

Miller-Valentine would turn the property into 60 to 80 units for people age 55 and older with an investment of between $12 million and $14 million. According to Schwiegeraht, initial plans call for preserving much of the brick structure but tearing down the block and steel buildings on the site.

The senior housing project would be a $22 million investment and would be housing for people age 55 and older, he said.

“This is still conceptual,” Schwiegeraht said.

Schwiegeraht acknowledged the building will need to be cleaned out before they take possession but credited the owner with his diligence at doing so. He expects that Monster Recycling will have removed all its accumulated material in the next six to eight months.

Miller-Valentine will be seeking tax credits from the Indiana Housing and Community Development Authority (IHDCA) for this project as well. The group will submit both applications — for Phase II of the Lofts and Monster Recycling — in November. If they are awarded the tax credit in February or March of 2016, construction could begin in the fall of 2016 and take one year to complete both projects.

Additionally, the group will likely request the city provide about $100,000 in economic development funds to the project.