FAYETTEVILLE — A nonprofit group and city officials continue to develop plans for row houses on the east side of the new city parking deck.
Partners for Better Housing wants to buy a 15-foot-wide strip along School Avenue from the city, but it's unclear what will be built on the property adjoining the Walton Arts Center.
At a Glance
Housing
Partners for Better Housing is a nonprofit organization that promotes affordable housing for low- to moderate-income individuals and families in Fayetteville.
Source: Partners For Better Housing
Alderman Matthew Petty and Rob Sharp, chairman of the nonprofit group, presented a plan in January that called for about 12 three-story row houses with a total of 18 bedrooms for low- to moderate-income tenants.
Members of the Partners board said last week the development might now feature ground-floor retail with residential space above.
Terri Trotter, chief operating officer for the Walton Arts Center, attended Thursday's board meeting and said arts center administrators would prefer something that would "add a little bit more vibrancy to the liner building."
Trotter said she wants to make sure the space appeals to patrons who walk by the building to get to the parking deck entrance.
Members of the board mentioned a coffee shop or artists' studios and gallery space.
The concept won't be formalized until the liner buildings are designed. Seven firms have expressed interest and Sharp said a selection committee will work to pick an architect this week.
Members of the nonprofit group, with limited resources, have to figure out how to pay for the property and project design. Sharp mentioned the possibility of getting a bank loan and applying for money through the Arkansas Development Finance Authority's HOME program, which funds projects that support affordable housing.
Projects eligible for the state program must house tenants who earn less than 60 percent of the area median income. That works out to about $22,000 annually in Fayetteville, according to 2012 Census estimates.
Rent from ground-floor retail would subsidize the residential space, Petty said.
After the liner buildings are designed, the nonprofit will solicit bids from developers.
City Attorney Kit Williams said the City Council and the University of Arkansas Board of Trustees must approve the land sale, because the Walton Arts Center property is co-owned by the city and university.
The City Council last week agreed in principle to sell the strip of land to Partners for Better Housing.
Mayor Lioneld Jordan has said he supports the row house idea as long as it doesn't delay parking deck construction, which is set to begin this summer.
The city must finish the parking deck by December 2015, three years after bonds were issued, or bondholders' tax-exempt status could be threatened.
As a condition for the property sale, the row houses likely would have to be finished within 12 months of parking deck completion.
During multiple planning meetings about the parking deck, members of Jordan's administration said they weren't in favor of building commercial liner buildings. Internal Revenue Service rules prevent tax-exempt bond money from being used to build or lease commercial space.
Jordan also said he had soured on public-private partnerships proposed before he became mayor -- namely, the failed Renaissance Tower hotel and SouthPass mixed-use development.
However, the city could save money by selling the strip of land and having a private developer build the row houses.
An east-facing liner building that had been planned for some type of municipal offices would no longer have to be built, said Jeremy Pate, Development Services director. Weatherized steel panels would not have to be installed on the parking deck, and landscaping that had been planned would not go in, he said. He estimated the city's savings at $300,000.
City officials are continuing to design the parking deck project under the assumption the row houses won't be built.
"We're moving forward either way," Williams said.
NW News on 03/10/2014