The renovation of the flood-damaged Roosevelt building downtown is set to begin.
The City Council last night approved a 30-year, 1-percent loan of $1.6 million to help in the $10.3-million affordable housing project.
Much of the funding secured by developer Sherman Associates Inc., Minneapolis, Minn., consists of federal low-income housing tax credits. The city’s loan likely will lessen to a $1-million one once the renovation of the historic building secures historic tax-credit financing.
The city earlier provided other short-term funding for the project, which will be paid back once the renovation is complete.
The renovated Roosevelt, which was converted to apartments from a hotel some years ago, will consist of 96 housing units, 90 of which will be affordable ones.
Jackie Nickolaus, Sherman vice president, told the council last night that the top three floors of the Roosevelt, which had been renovated in recent years by the prior owner, might be ready to occupy within six months once the building’s mechanical systems are installed.
Sherman Associates bought the building in December for $2.2 million.