Owner will make a payment each year which is less than the city’s property tax rate.
Frederick, Md (KM)> A payment in lieu of taxes was approved Thursday night by the Frederick Board of Aldermen for an affordable housing project.
The Ox Fibre Apartments are planned for an 80,000-square-foot building at 400 East Church Street which once housed Goodwill Industries. It will contain 83 apartments: 51, one-bedroom units; 26, two-bedroom units; and six, three-bedroom units Out of these apartments, 73 will be reserved for person earning 60% of Area Median Income, and 10 will be reserved for individuals early 40% of AMI, according to city documents.
Deputy Planning Director Joe Adkins says the project was already approved by the County Council for a PILOT. “As you know, the city and the county both have to approve the PILOT program for it to take affect,” he said.
He also said during the PILOT, the city will credit $24,213 annually in real property taxes due for the property. That equates to $281.55 per unit.
The developer of the project is 400 Church Street LLC which is spending $22,900,000 to redevelop the building.
The rents will be $854 per month for the one-bedroom units; $1,005 for two-bedroom units; and $1600 for the three-bedroom units. City documents say the average rent on these units is $1,232 monthly, which is lower than the average market-rate tent in the city which is $1,326.
“I’m very excited about this project,” said Alderwoman Donna Kuzemchak. “It’s nice to see it moving forward.”
By Kevin McManus