PROSPECT, Ky. (WDRB) – A new option may be in the works for the city of Prospect instead of a proposed affordable housing complex.
The plans for the complex would use about nine acres for a four-story building. It would have 198 rental units, the majority being two-bedrooms. The four-story complex would be the only building that tall in all of Prospect and would sit at the intersection of Timber Ridge Drive and River Road.
“It's an awful lot of people in an awfully small space,” said Prospect Mayor John Evans.
The developer, LDG Development, submitted the proposal last year. Prospect City Council immediately passed a resolution state the city opposed the plan.
The land is valued at $2.8 million, but Evans said it isn’t worth nearly that because part of the land can’t be developed.
“(The developers) all tell me the same thing: it isn’t worth $2.8 million,” Evans said. “It won’t bear, you’ll lose money."
Due to the type of development proposed by LDG, they would receive tax credits if it were to be built.
“The federal tax laws give a dollar for dollar tax credit in that type of development,” Evans said.
However, Evans says two new developers have come forward with a different plan for the same space.
“What they propose to do is build restaurants and retail shops and office buildings,” he said.
Those developers are only willing to invest $1.6 million in the project, which means there’s a $1.2 million difference that would need to be made up. Evans has a plan to do that, at least in part, by investing $810,000 of city money to buy two parcels of the land from the developers at the assessed cost.
One parcel would be turned into a park.
“The other is 3/4 of an acre where the city hopes to build a municipal maintenance building that we've needed for a long time,” Evans said.
Still though, that’s $390,000 short. So Evans is going straight to the people of Prospect to help. He’s essentially started a fundraising campaign to pay off the $390,000 difference.
So far, Evans said he’s raised $178,400 from around 200 households, and he says there won’t be a problem to get the rest. If the plan doesn’t work, all that money will be returned.
There is no indication that LDG is expected to change any of its plans.
Evans maintains that he does not have a problem with affordable housing and instead takes issue with the scale of the project.
“If this were not such a high density, 198 apartments ... if it were half that, it might be a different story,” Evans said.
Copyright 2017 WDRB Media. All rights reserved.