WPDA approves loan commitment letter
The West Point Development Authority held a special called meeting on Monday to update one part of the 10th street redevelopment plan that had been put into motion in 2013.
The specially called meeting was all about a Housing/Mixed-Use Development.
The project would bring an apartment complex called West Point Village to the area that would have approximately 250 apartments.
The project, which is being led by the West Point Housing Authority, would need $750,000 to be used for the development of the complex and would be contingent upon the West Point Housing Authority receiving a 9% tax credit from the Georgia Department of Community Affairs. The loan’s duration is 20 years.
The loan is contingent upon the West Point Housing Authority receiving a 9% tax credit from the Georgia Department of Community Affairs. It is also contingent on West Point Villages LLC being equity members at all times during the loan.
The biggest concern of failure would be the tax credit is not awarded to the investors correctly.
“All the ts are going to be crossed and all the is are going to be dotted to make sure the tax credits are awarded to these investors,” Reeves said.
The actual construction period will be 24 months unless all parties (WPDA, WPHA and West Point Villages LLC, which is made up of the developer, investor, U.S. Department of Housing and Urban Development (HUD) and Development Community Affairs (DCA) agree that it needs to be extended. The loan will have a 0% interest rate during construction. After that phase, the interest rate will increase to 1%.
“Essentially these are projects that are privatizing what HUD is accomplishing in public housing,” said Coleman Reeves, chairman of the West Point Housing Authority. “Me sitting here saying that it is not going to fail does mean that this couldn’t. There’s risk in everything out there. However, one of these plans has not failed today, so there’s not much risk involved today. They’re solid projects.”
The other cause for concern is if the project could not survive on its own after it is completed, but Reeves made sure to say that after the data collected, the West Point area is in need of affordable housing.
“That does not concern the housing authority or the developer,” Reeves said.
WPDA may terminate its commitment if any terms are changed.
It was approved by the development.
CIG Captial, an alternate investment firm, announced another apartment project on Monday called the Villages at West Point.
CIG said in a press release that the apartments will feature resort-style apartment homes and secure on-site boat, recreational vehicle and camp trailer parking facilities for tenants and guests
.“Our team is dedicated and excited for the success of The Villages project. The new Villages at West Point will be the perfect family home located in a beautiful environment near work, or can be a home-away-from-home rental facility to get away from the hustle of city life and enjoy the outdoors with family and friends,” Charles D. Carey, Managing Partner of CIG Capital said in a press release. “Continuing to fund important construction projects during this financial crisis is critical for the future well-being of our economy, and we are committed to providing liquidity to those industries whose plans include expansion.”