OGDEN -- Another new residential town home and apartment complex is coming to downtown Ogden.
The city council voted earlier this week to approve a land transfer and development agreement between the city and Lotus Residential Partners, LLC to build six new town homes and 58 apartment units at 2550 Wall Ave., directly across the street from Ogden's Union Station.
The development, called Union Square, will be built in three phases, with the first phase including the town homes, the second phase including the apartment units and associated parking, and the final phase being a future, conceptual development that is based on a third party acquiring the related land.
LRP will get the property at a discounted price of $392,000 because of the poor environmental condition of the property. The estimated incentive to the developer is $376,000, money which the city says it will make up in retained tax increment generated by the development.
If the project is stalled, LRP will not receive the incentive.
The discount will mitigate any environmental liability LRP assumes and offset a financial gap that exists because of low market rent rates that continue to remain in the downtown area.
Ogden Community and Economic Development Director Tom Christopulos said the development is consistent with the city's long-term community and economic development strategy.
He said the development will increase property values in the area and will be beneficial to commercial businesses along Historic 25th Street. The development also fits
Ogden's plan of making downtown Ogden more pedestrian friendly, with the FrontRunner commuter rail, restaurants, a movie theater and other businesses all within walking distance.
In addition to the economic value, Christopulos said, the development will replace an empty corner site, currently laden with weeds and other debris, causing an eyesore to existing residents and visitors of the area.
As part of the agreement, LRP is required to complete the town home phase of the project by July 31, 2014 and the apartment phase by Dec. 31, 2017.
Contact reporter Mitch Shaw at 801-625-4233 or email@example.com. Follow him on Twitter at @mitchshaw23.