13 January 2010 ? City bail out:: The fledging 263 unit mixed-income condo development, Parkside at Old Town, is getting a little help from the Daley administration. Unable to pay off its construction loan this past December, developer Peter Holsten was able to sidestep a potential $32 million loan default with Chase Bank by securing a well needed $3.4 million public subsidy that will be paid earlier than originally planned. This infusion of cash lowers the sales target needed to receive the money. In addition, the bank has agreed to extend the loan and new investors are injecting more cash into the project. Originally, 194 of the units were to be sold at market rates, 72 were earmarked for CHA residents, and 14 were to be sold at ?affordable? prices. Parkside was to receive $9 million in tax-increment financing with the final $3.4 million paid when 85% of the market rate units were sold. But, the city agreed to lower that figure to 43% and cut the market rate units available to 177. This tweaking of the agreement reduced the overall TIF by $300k. The developer and city hope that this will attract more middle income buyers, a key ingredient for in this type of mixed-income real estate formula.Email This Post To a Friend.
City of Chicago to Subsidize Mixed Income Housing Near Cabrini-Green
January 13, 2010
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