Monday, May 24, 2010

LEED status in doubt, Fay developers get new CRA agreement

With its ability to achieve LEED certification uncertain, the developers rehabilitating the 893-unit Fay Apartments complex have received a new Community Reinvestment Area (CRA) tax exemption agreement.

The new eight-year agreement replaces the 12-year agreement approved by Cincinnati City Council in June 2009, providing a 75 percent real property tax exemption equal to approximately $3.5 million. The original agreement provided more than $5.1 million in property tax relief.

Councilmembers Jeff Berding, Chris Bortz, and Chris Monzel voted against the exemption.

Fay Limited Partnership and Wallick/Stern-Hendy Properties, LLC are in the process of a $36.8 million rehabilitation of the complex that will reduce the number of units to 703. Seventeen outdated building will be demolished, and many of the two-bedroom units will be converted into more marketable three-bedroom units.

They also plan on spending more than $1 million on enhanced security measures, including the installation of 32 security cameras, eight-foot decorative steel fencing along the eastern perimeter, steel entrance doors and window guards, extensive exterior lighting, and monitored license plate recognition cameras at the President Drive entrance.

The project is scheduled for completion in summer 2012.

The developers still plan to apply for LEED certification through the U.S. Green Building Council's LEED NC 2.2 program.

Built in 1962, the complex once housed 1,025 market-rate units; today, only 115 market-rate apartments remain.

Previous reading on BC:
Fay developer gets funding for $32M rehabilitation (7/2/09)
Future of Fay Apartments in doubt (4/30/08)