OGDEN — A historic apartment complex that last served as a space for low-income residents will soon be remodeled with the help of Ogden City.
On Tuesday night, the Ogden City Redevelopment Agency (made up of the seven members of the city council) passed a resolution that approves a "Participation and Incentive Agreement" with 2461 Adams Ave., LLC for the redevelopment of the Peery Apartments.
Under the terms of the agreement, the city is to provide tax increment financing dollars to the Adams LLC (which is managed by Ogden developer Thaine Fischer), not to exceed $300,000 over a period of 20 years.
The TIF funding method, commonly used by the city to reinvigorate distressed parts of Ogden, freezes future increases in property tax revenue in a certain area and redirects that money back into redevelopment projects there.
The money is often offered to developers as an incentive to build and it can also be used for things like street and utility improvements, hazardous waste removal, property acquisition and the demolition of blighted buildings.
Redevelopment plans for the Peery Apartments, which sit on the northwest corner of 25th Street and Adams Avenue, include building 12 market rate residential units at the complex, with covered parking, upgraded landscaping and fencing and other amenities.
Brandon Cooper, Ogden's deputy director of Community and Economic Development, said the remodeled units would mostly be one-bedroom apartments, at approximately 1,000 square feet.
The restoration must be finished by Oct. 31, 2019 for developers to be eligible for the TIF money.
According to city council documents, the apartments were built in 1910 as an investment property for well-known Ogden businessman, D. H. Peery.
Designed by Leslie Hodgson (the prominent Ogden architect who also drew up plans for Ogden High School, Peery’s Egyptian Theater, the U.S. Forest Service Building, The Bigelow Hotel and the Ogden Municipal Building), the Peery Apartments building is on the National Register of Historic Places.
The complex has most recently been used for low-income housing, but in 2014 the facility lost its Department of Housing and Urban Development endorsement.
At Tuesday's meeting, council members Doug Stephens and Angela Choberka raised questions about what the loss of a rather large affordable housing unit means to low-income residents in Ogden's east-central neighborhood.
Cooper said although the building is moving from a low-income status to one of market rate, there is still plenty of affordable housing stock in Ogden.
"We're of the belief that we have a surplus of low income housing as it relates to what HUD requires of us ... and in comparison to other cities in the county," Cooper said.
Choberka asked the council and city administration to continue the discussion on affordable housing in Ogden.
The Peery restoration is part of the city's Adams Community Reinvestment Area — a 150-acre redevelopment area between 23rd and 28th streets from Washington Boulevard to Jefferson Avenue.
There’s about $124 million in potential construction projects associated with the Adams CRA and city officials say redeveloping the area — which includes remodeling decades-old, vacant buildings — will stimulate economic growth, create jobs and connect the downtown with neighborhoods in east-central Ogden.
Tax increment will be collected from the city and Weber County for 25 years at a maximum contribution of $2.5 million and $2.4 million, respectively. It will be collected from the Ogden School District for 20 years, with a maximum contribution of $5.7 million.