Construction is expected to get underway on a new mixed-use facility by November, according to an agreement unanimously approved by Superior’s Redevelopment Authority on Wednesday, Sept. 11.
P&R Properties LLC is planning to build a five-story building with about 136 apartments, 12,000-square-feet of retail space, and parking at the site of the former Central School on Belknap Street between Weeks and Grand avenues.
Construction of the 175,000-square-foot building, Central Flats, is expected to be complete by the end of 2020.
Under the terms of the agreement, the Redevelopment Authority will reimburse up to $5.5 million in the company’s costs for site improvements such as site assembly and preparation, soil tests and corrections, below grade foundations, stormwater drainage parking improvements and engineering plans. The reimbursements are subject to the authority receiving copies of paid invoices.
The company is planning to invest $23 million in the project that will feature commercial space facing Belknap Street on the ground floor.
The Redevelopment Authority plans to issue $1.25 million in general obligation bonds to pay for a portion of the site improvements during construction with the remaining $4.25 million to paid annually from available tax increment generated by the private investment.
The tax increment grants will be calculated annually by a city adviser and will be paid from the $407,312 in taxes to be paid by the company under a real estate tax agreement between the company and the Redevelopment Authority. The agreement will be in place on or prior to construction getting underway.
The Superior Plan Commission also approved changes to tax increment districts in the area Wednesday.
The Central Flats project area was removed from a distressed tax increment district created just before the recession in 2008 and create a new tax increment district specifically for the project.
The Superior City Council will consider the agreements Oct. 1, and the Joint Review Board, made up of taxing authorities in Superior, will make a final determination on the tax increment districts Oct. 2, according to Jason Serck, Superior’s economic development, port and planning director.