Redevelopment efforts west of downtown 鈥 once chided by critics 鈥 are now bearing fruit.
The success of Mercado San Agustin, its recently opened annex, the pending opening of West End Station and custom-home development have fueled enthusiasm for future projects.
A new mixed-use development by the Gadsden Co. is close to breaking ground on Avenida del Convento, near Cushing Street, west of Interstate 10.
The Monier would be a four-story complex with 122 apartments and ground-floor retail and office space. It would also feature underground parking.
The $35 million project has secured a HUD loan with a fixed rate of 4.28 percent, and $9 million in private equity, Adam Weinstein, president and CEO of the Gadsden Co. told members of the Rio Nuevo board at their recent meeting. A 12.3 percent increase in construction costs since the approval of the HUD loan resulted in a gap.
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The board unanimously voted to provide a $2.4 million loan to the project pending review of appraisal, HUD loan terms and potential use of the Mercado San Agustin Annex as collateral.
Rio Nuevo would receive $1.45 million annually in revenue from such a partnership. The board will take a final vote on the loan at its September meeting.
If approved, the project could break ground as early as November, Weinstein said.
鈥淭his is a great project,鈥 board Chairman Fletcher McCusker said. 鈥淚t is with partners we have worked with before, has dramatic sales tax revenue and continues to fill out the district鈥檚 western sector.鈥
Weinstein and Gadsden owner Jerry Dixon have worked closely with neighbors and city officials on the project.
鈥淲hat I love about this family is it鈥檚 a local family, they know the community and are part of the community who live on the west side and downtown,鈥 said Ward 1 Councilwoman Regina Romero. 鈥淓very step of the way they have involved the neighborhoods and council office.鈥
She said market-rate apartments are needed on the city鈥檚 west side.
鈥淲hen downtowns change there鈥檚 a lot of displacement that happens,鈥 Romero said. 鈥淲e want to make sure we鈥檙e planning ahead so families and young people can afford to live in the area, so a family with two teachers can afford to live there.鈥
She said banks are still reluctant to approve loans for apartments, which makes Rio Nuevo鈥檚 participation critical.
Ground was broken for the Cushing Street Bridge in 2011 amid much skepticism that development west of I-10 would ever materialize.
鈥淩emember,鈥 Romero asked, 鈥渨hen people used to call the Cushing Street Bridge the bridge to nowhere?鈥
