TERRE HAUTE, Ind. (WTWO/WAWV) — Terre Haute Mayor Brandon Sakbun is encouraging City Council members to vote yes on the Payments in Lieu of Taxes (PILOT) agreement between TWG Development Group and the City of Terre Haute.
“If housing is truly a human right, we must embrace housing projects at all price ranges. We need more housing at varied price levels to help all Hoosiers of today, and Hoosiers of tomorrow,” says Mayor Brandon Sakbun.
According to a press release, through the city’s PILOT agreement, TWG will pay the City Controller to compensate for the loss of property tax revenue due to tax-exempt use of property. The city says this agreement will allow for the payments to be deposited into a housing trust fund with the purpose of providing financial assistance and grants/loans for development and rehabilitation for stable and affordable housing.
The city will work together with TWG Development Group on this development project to address the need for more available housing options.
TWG received $1.2 million in Affordable & Workforce Housing Tax Credits, made available through the Indiana Housing and Community Development Authority, to fund the housing development. Wabash Place Apartments will bring 120 apartment units offering a mix of one, two, or three-bedroom options.
In the press release, Mayor Sakbun highlighted two concerns that have been brought forward from the city council regarding the PILOT Agreement with TWG.
“Some council members have requested the use of local contractors on the construction of Wabash Place Apartments. However, the city is unable to mandate the usage of local contractors for private projects that receive state and federal tax credits. While the administration strongly encourages any developer to utilize local contractors, only public projects are under the guidelines of the Responsible Bidder Ordinance,” Sakbun stated.
Sakbun added, “The second concern is the possibility of TWG selling this developed property in 15 years, falling into the hands of an unknown owner. If Wabash Place Apartments is sold in the future, that does not change the fact that we need housing in Terre Haute now. We believe that the proposed Property Maintenance Code will ensure that current and future properties are maintained and the owners are held accountable if they are not. With this in mind, the proposed development directly helps our lower-income families to receive the living accommodations they deserve.”
The PILOT Agreement between TWG Development Group and the city of Terre Haute was approved Wednesday night at the City Council Meeting.
