DIA Committee Approves Lofts at Cathedral Loans | Jax daily record | Jacksonville Daily Record
A Downtown Investment Authority committee approved a development loan to Vestcor Inc., based in Jacksonville, for the proposed Lofts at Cathedral project.
The DIA Strategic Implementation Committee voted 5-0 on August 17 for a $ 625,000 loan for the 325 and 327 E. Duval St.
The entire DIA board will review the loan at a future meeting. If it is approved, then it goes to the city council.
The project is expected to cost $ 28.8 million.
Vestcor plans to build 90 units and add 30 units to the Community Connections building. Vestcor purchased the Community Connections building and adjacent 1.25 hectare property in September 2019 and February 2020 for a total of $ 1.4 million.
The development will have a mix of income requirements. Eighteen units are reserved for renters at 30% of the median income for the area, 39 units at 60% of the median income and 27 units at 80% of the median income. There are also 36 standard market units.
Vestcor applied for the loan to qualify for Florida Housing Finance Corp.’s Low Income Housing Tax Credit program. comes into question, it says in the DIA term sheet.
The 20 year loan with 1% interest is drawn from DIA Northbank’s CRA loan program.
“It’s going to be great for this particular area,” said Ron Moody, chairman of the DIA Strategic Implementation Committee. “Vestcor was an excellent partner for us, helping us develop Downtown. So in my eyes it is a go. “
The Community Connections building was built in 1949. It was part of the Florence Davis YWCA and was named a local landmark in June 2017, according to DIA.
Vestcor told city officials that it plans to apply for a $ 400,000 grant from the Trust Fund for the historic preservation of the city.
The development agreement between Vestcor and the city limits taxpayer-backed local incentives to $ 1.025 million.
Vestcor will contribute $ 9.25 million in debt financing for the development. It will defer its $ 766,032 developer fee.
In August 2019, DIA awarded the development rights for the Community Connections building to Vestcor.