The city is preparing to sell the first properties that will be part of a broader redevelopment near Old Town Mall planned to bring more homes, offices and a grocery store to the area.
Oldtown Senior LLC, an affiliate of a team that includes Henson Development Co., Beatty Development, Mission First Housing Group and the Commercial Group, has agreed to buy three parcels for $400,000. The agreement, approved by the Board of Estimates on Wednesday, is a sign of commitment toward at least part of the project.
The city is still negotiating the sale of other properties associated with the redevelopment, but Dan Henson of Henson Development Co. said the developers asked to move forward with this subset, so they can meet a deadline to apply for low income housing tax credits.
They are planning to build an 81 subsidized apartments for seniors with retail, community and green space on the lots, some of which will replace units in other public housing developments.
The parcels, which include 400 Mott Street, 470 Old Town Mall, and part of another nearby block, were valued at $250,000 in a September appraisal, according to the agenda. Henson said the sales price was based on an earlier estimate and developers decided to move forward anyway in order to meet an end of October deadline for the tax credits.
"We didn't want to go back and change it because we think our budget can handle it," Henson said.