Downtown properties getting ready for development. High rise housing, hotel and retail and medical facilities are all possible. This valuable land sits
squeezed between the Medical District and the Centarl Business District.
By JOHN PECKTimes Staff Writer,
[email protected]
A year after announcing a major redevelopment of the Councill Court housing project downtown, officials are close to choosing a development firm.
The job will clear most of the 20-acre site for redevelopment.
Dick Fountain, chairman of the Huntsville Housing Authority, said the board may pick a firm within a month. "We're hoping within the next 30 days to hear back from these negotiations and get something presented," Fountain said last week.
A request for qualifications turned up a bidders list that has been narrowed to
Pennrose Properties of Philadelphia and Integral Group of Atlanta. Both report extensive experience in developing mixed-use, mixed-income, multifamily housing in urban areas, according to their Web sites.
Pennrose appears to be the leading candidate, said Michael Lundy, the Housing Authority's executive director and CEO.
"We want to make sure the costs are reasonable and that we own the property when it is completed," Lundy said.
Plans call for demolishing all 196 units of the 55-year-old Councill Court; building a 75- to 125-unit complex on the site, primarily for elderly residents; and selling the remaining property. Displaced residents would be moved into other housing with plenty of input on their preferences.
Money from the sold property (about 15 of the 20 acres) would go back into Huntsville's public housing program. Residents could begin moving out by the end of the year, Lundy said, while the entire redevelopment could take up to five years.
Officials say the plan will move tenants into better housing and away from traditional clustered housing "projects." Money for the new senior building (only residents 62 and older qualify) and replacement housing would come from the sale of prime real estate.
City Planning Director Dallas Fanning said the Councill Court property is in a high-growth corridor that provides a great opportunity for the Housing Authority to make money. "That's sitting on probably the most expensive land in the whole city," Fanning said in an earlier interview.
Officials estimate that the land could fetch $28 to $30-plus per square foot, or $900,000 to $1 million or more an acre. Lundy said that several prospective buyers have inquired about the property but that no offers will be considered until the land is officially on the market. Those interests range from retail to medical to other commercial.
Huntsville Hospital has had its eye on Councill Court since at least the early 1990s and is still interested. Lundy emphasized that the hospital does not have an edge in the bidding.
Lundy said public housing authorities nationwide must find innovative ways to pay rising operational costs in the face of shrinking appropriations.
"We're put in a position where we have to do something because we're receiving fewer and fewer dollars" from the U.S. Department of Housing and Urban Development, he said.
Records show a steady decrease in HUD appropriations over the last several years with a projected sharp drop in fiscal 2007. The local Housing Authority receives about 70 percent of its revenue from HUD in the form of an operating subsidy. Cuts have reduced Huntsville's revenue by more than $5 million over the last four years, he said.
Shift from 'warehousing'
Lundy said the authority wants to get away from "warehousing" public housing residents. The development firm will help identify available smaller apartment properties throughout the city for Councill Court tenants.
"Putting people in clustered housing perpetuates poverty. We want to help them break that cycle," Lundy said. Case managers will help residents move. Residents may choose to move to other public housing, seek federal Section 8 vouchers for private rental arrangements or take part in programs leading to homeownership.
Lundy said some of the money from the property sale will be used to buy vacant, small apartment buildings throughout the city to turn into affordable housing.
New housing options
The authority hopes to work with the development firm to seek low-income tax credits and favorable bond ratings to redevelop the new housing options. Lundy envisions multifamily complexes of maybe 10 to 20 units scattered throughout the city that would be refurbished and available to people outside public housing as well.
"If everything goes like we want it to go, the first relocation probably would not happen until about this time next year," he said. "It could happen as early as late summer, but I would venture to say that's too optimistic."
Fountain said a goal is to get Councill Court residents living in neighborhoods so they can feel they are in the mainstream.
"My vision for this is to create social service opportunities to match up to agencies and really help these folks become self-sufficient," Fountain said. "You can quantify this as much as you want as bricks and mortar, but it's really about people."