LEWISTON — The developer of a Bates Mill housing plan said he’s ready to move on to the next step, with bigger free-market apartments going up for rent.
Developer Nathan Szanton said he plans to apply for low-income housing credits for the project from Maine Housing in October.
The project is planned for the Bates Mill Building No. 2, redeveloping the part of the mill overlooking the Fountain Plaza.
“If we get those credits, we’ll be able to move forward with the rest of the project,” he said. “I never expend a resource — to do a full design, hire architects, engineers and come up with detailed plans — until I have the financing secured.”
Councilors approved a Tax Increment Finance incentive last week and earmarked federal HOME funds for the project.
“The Maine Housing tax credits are award-based upon points,” Szanton said. “One of the things they look for is having all of the permits in hand, and we have that. Then they look at having financial support from someone other than Maine Housing, and we have that now, with the city’s support. So I think our application should be very competitive.”
He expects word concerning the tax credits from Maine Housing in December.
“And then, if we are successful, we can proceed with a full construction design,” Szanton said. He hopes to take the project to bid in May 2011, with a nine-month-long construction beginning in July 2011.
The project would open in March 2012 if everything goes smoothly.
Szanton said he has made changes from his preliminary designs. Early plans called for a mix of low-income subsidized rental units and market-rate apartments. While the subsidized units were a mix of one-, two- and three-bedroom apartments, the market-rate apartments were going to be limited to one-bedroom units.
“The market-rate study we did at the time showed there isn’t as much demand for two-bedroom units as there is for one bedrooms,” he said. “But we’ve changed, and I think the project is going be appealing to the marketplace. I think we’ll be successful offering things that are just not currently there.”
According to current plans, the project will offer 50 units in all — 35 subsidized for low-income renters and 15 market-rate apartments. Nine of the market-rate units will have one bedroom; six will have two bedrooms.
Rents for single-bedroom units would start at $640 for the fair-market renters, with lower rents for publicly supported units. Section 8 recipients would qualify for $576 rents. Residents making 50 percent of the average median income could qualify for $483 rents.
Two-bedroom units in the development would rent for $701 for Section 8 recipients. Residents making 50 percent of the average median income could qualify for $577 monthly rent. The six market-rate two-bedroom apartments would rent for $750.
Rents for three-bedroom units would begin at $896 for Section 8 and $665 for 50 percent average of median income residents.
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