Commission OKs duplex project

The Blytheville Planning Commission unanimously approved a request from Gardner Capital to rezone the R-4 property at the intersection of Dogwood and South Division as "Planned Residential Development" (PRD) Tuesday night.

The Springfield, Mo.-based company wants to build 18 duplex homes -- 36 total units -- that it calls "work-force housing" for those of moderate income, which ranges from $22,020-$36,480 a year.

Estimated to rent at $450 a month, the duplex homes will all have three bedrooms, two bathrooms and a garage, according to information provided to the city.

Tammi Creason, Gardner director of development, told the Planning Commission that the company does credit checks and background checks before renting to tenants like any other landlord.

Gardner hopes to start construction of Dogwood Cottages later this summer and complete the project by next summer.

Creason told the board that the housing is not subsidized by the government.

It is different than Section 8 HUD housing. All tenants must pay the entire rent and obey strict lease requirements. The rents are less than rents of comparable apartments because of the financing structure that has been used to pay for part of the initial construction cost.

Gardner has received a tax credit allocation from the Arkansas Development Finance Authority to build the units.

Creason said through an IRS program the company gets tax credits and, in turn, must make a 15-year commitment.

"They give us tax credits and the tax credits are sold as an investment," she said, noting that this lowers the company's financing for construction.

Asked by Planning Commission chairman Jim McClain what happens after 15 years, Creason said the company intends to keep it work-force housing as long as possible. There is also an extended 15-year agreement with the ADFA, she said. Responding to board member Ben Hubbard, Creason said when the company's obligation ends, it doesn't necessarily mean the rent will be increased.

Judy Andrews of the mayor's office noted with the PRD zoning, if the company sold the property, it still must be housing development, and Gardner couldn't break up the property and sell it without going back to the Planning Commission.

Meanwhile, Creason indicated future development in other areas of town is possible as is a Phase 2 for Dogwood Cottages, if there becomes a long waiting list.

mbrasfield@blythevillecourier.com