The $14.8 million project includes apartments and commercial space.
The former Jacksonville Jewish Center could be the next property to join revitalization efforts in Springfield.
Developer Springfield Lofts LLC wants to secure $3 million in taxpayer-backed incentives to convert the space into a $14.8 million mixed-use residential and commercial office project.
The project includes 78 market-rate residential units and 8,000 square feet of commercial office space, according to a Jan. 23 memorandum from the City’s Office of Economic Development.
Celebration-based real estate firm GNP Development Partners LLC purchased the 2.12 acres in January 2016 through Fore Independent #15 Skyscraper Holding LLC and Springfield Lofts LLC.
The former center at 205 W. Third St. was designated as a historic contributing structure in the Springfield Historic District north of Downtown. The center and two parcels at 235 W. Third St. and 1341 Pearl St. are north of Henry J. Klutho Park in Springfield.
In a memo to MBRC Chair Brian Hughes, city economic development officials have proposed a $1 million project grant, $1 million loan and a maximum $1 million Recaptured Enhanced Value Grant to help finance the development.
“This project will not only stabilize the real estate market (in Springfield), but will provide a stabilizing influence on Klutho Park and The Emerald Trail which is gaining momentum,” the memo states.
The 20-year, 3% interest loan will be used to complete construction.
Both grants would be awarded when the developer receives its certificate of occupancy from the city and provides proof of its capital investment. The project grant will be reduced if investment does not reach $14 million.
GNP Development has to invest a minimum of $10.5 million to receive the city grants. If the developer spends less than $11.2 million on the project, the REV grant tax rebate will be reduced from 75% to 50% over 10 years.
City economic development officials hope to file legislation with City Council to enter into agreement with the company by Feb. 11.
The Mayor’s Budget Review Committee will consider the Office of Economic Development’s request at its Jan. 27 meeting.