FORT WAYNE, Ind. (WANE) – The Fort Wayne Redevelopment Commission approved the use of $1.6 million in Tax Increment Financing (TIF) funds for the Lofts at Headwaters Park project Tuesday.
The funds will be given over a period of three years.
The mixed-used development was originally planned to cost $67 million. That estimate came in 2020, but officials with the development said inflation is pushing the price to nearly $100 million now.
Jonathan Leist, Deputy Director of Redevelopment for Fort Wayne, said the $1.6 million in TIF financing will be a great addition, with the money going toward things like water and sewer plans and the removal of contaminated soils.
“We were able to complete our portion of the remediation over the summer, that’s been the main obstacle so finalizing the environmental reports and being able to hand over a clean site was step one. Leist said. “But then as they were able to start getting bid information from contractors and subcontractors over the summer we just realized the cost was much higher than what was originally anticipated.”
Leist also said they have funds coming in from other places as well, including $3 million the project received from the Allen County Capital Improvement Board in December 2022.
“Regional Development Authority approved READI funding for this project, the Allen County Capital Improvement Board also approved funding to this project, and the developer brought in a significant amount of equity into the project as well,” Leist said.
All in all, developers say they’re excited to get the project going.
“It means so much to our downtown you know to bring in 400 new residents, a million dollars a year in new tax revenue, and just the overall impact of economic impact of having this no longer just be a parking lot to have it really be a vibrant site in our downtown is huge for us so we’re really excited today,” Leist said.
Construction is slated to begin in March.
The Redevelopment Commission also approved the extension of the economic agreement regarding the Roosevelt Reserves Residential Housing Development Program. This allows developers to begin construction work in the summer of 2023.
Leist said the program will be the first for sale single-family market rate housing project of its size and scale in southeast Fort Wayne in several decades.