They asked council to approve $3 million in ARPA funds, $500,00 in infrastructure and $500,000 in home funds and approve a 15-year, 4% tax break to build a $12 million, 80-unit apartment complex on South Main Street. Sixty units would be built in the first phase, then 20 in the second phase, they said.
Gould said the property that belongs to Faith Fellowship Church would be “a good use” for apartments and a “wise investment,” for the city because it would draw potential employees to the city.
The one-, two- and three-bedroom apartments would be market rate and rent would not be based on a person’s income and no Section 8 vouchers would be accepted, he said.
“The rent is the rent,” Gould said. “Workforce is affordable housing.”
Council member Zack Ferrell noted that if the city approved $4 million, it would invest $50,000 per apartment.
Gould said every city in the state that received ARPA fund is earmarking a significant amount for affordable housing.
“It makes sense to use ARPA dollars,” he said. “That’s what they are for.”
Middletown has $18.9 million in ARPA funds and has spent or encumbered about $3.83 million on LED street lights, premium pay for city employees, the Robert “Sonny” Hill Community Center expansion project and renovations of the Middletown Division of Police locker rooms.
Mayor Nicole Condrey said if council approved the $4 million and the 4% tax credit for 15 years, the city would receive “a double hit” financially. She noted other apartment developers have expressed interest in building in Middletown and they haven’t asked for ARPA funds.
Council member Rodney Muterspaw said $4 million “is a lot of money” and the city is using its funds to enrich the community and create jobs.
Vice Mayor Monica Nenni said designating ARPA funds is “a really challenging decision. We have a lot of decisions to make.”
Without the ARPA funds, financing the apartments would “be a stretch,” Gould said.
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