The developers behind a $29 million luxury apartment complex in Elkhart cleared a hurdle Tuesday.
The Elkhart Redevelopment Commission announced Wednesday that a development agreement had been made with Indianapolis-based Flaherty & Collins, according to a press release.
The agreement allows the developer to finalize financing on the project, which they’re hoping to have in place by spring, according to the Elkhart Truth.
The 200-unit complex would be located at the former Elkhart Foundry site. 7,000 square feet of retail space would be built soon after the apartments are in place.
The Elkhart City Council and Economic Development Commission have to approve selling city bonds and issuing a loan through a TIF district where the project will lie. Using city funds for such a project has been a contentious issue in the community, and should the bonds not be approved, the developer may have to renegotiate with the city on the project, according to the Elkhart Truth.
The bonds would yield about $3.1 million for the project. The loan would be paid back over the course of 18 years. On top of that, a 25 year, $1.5 million Economic Development Commission loan is also need.
Read more about the hurdles this project still faces with this story here.