Apartment complex project at former hatchery site does not receive state funds

Despite the assistance from a local nonprofit who filled out a low-income housing tax credit application for the developers of a proposed apartment complex on the former hatchery site, state funding could not be acquired and as a result of the project not moving forward the city decided to purchase the property.

Newton Housing Development Corporation has owned the property since April 2022. The organization purchased the property at 1015 North Third Avenue West for $135,000. NHDC requested city assistance for two-thirds of the purchase price, or $90,000, to help with the new housing project.

The city will purchase the property from NHDC for a total not exceeding $55,000; $45,000 of which is for the remaining purchase cost while $10,000 or so is for holding costs. The city council on Dec. 4 voted 4-1 to pay for the sale suing TIF and LMI set-aside funds. Council member Randy Ervin voted no.

Earlier this year, Pivotal Housing Partners proposed to turn the former hatchery site into an apartment complex with at least 40 workforce housing units.

Council member and mayor-elect Evelyn George said the lot has been empty for a very long time, and the project was to help increase the city’s stock of low income or workforce housing, which is very important. George said the plans put together by Pivotal Housing Partners were “beautiful.”

Other developers have shown little to no interest in the former hatchery site. Although the land is within a block of First Avenue, the topography issues make for an awkward arrangement. Newton Community Development Director Erin Chambers said this factor has been challenge when talking with developers.