General Capital’s proposed $10 million dollar construction project which aims to build independent senior housing near downtown Niles took another step toward completion this month.
City Administrator Ric Huff said that the Wisconsin-based private real estate company filed an application in October with the Michigan Economic Department to obtain tax credits to offset the construction costs.
The state of Michigan recognizes the need to subsidize construction costs in areas where property values are slightly depressed and tax credits can be awarded to offset some of the cost.
General Capital is expected to hear back from the state in January and depending on whether or not they can receive the tax credits, they will proceed with the plans to build the 53-unit facility at 211 Broadway, popularly known as Kelly’s corner.
“We know the community has a need for this type of housing,” Huff said.

Some residents in the area expressed concern for the construction. Huff said this was because they believed that the building would be section eight housing and create a place for residents with little to no income to live. Huff said this was misinformation and that the building will fall under section 42 housing, which is an affordable rental program and the units will rent in the $600 a month range.
“It has the possibility to do some pretty interesting things,” Huff said of the project. “Obviously up that to 106 people living within a block of our downtown and taking part in our businesses and showing some more life in our downtown.”
Despite the move this month to receive tax credits, Huff said there is still some steps for General Capital to put into motion, including official permits.
There are currently five structures at the proposed location, including some offices and at least three residents who live there. These buildings would need to be knocked down for construction to proceed. Huff said that while it is not the city’s jurisdiction to find a new location for the current tenants, because it is private property they would be given a six-month warning if they need to vacate.
General Capital met with the planning commission in June, when they originally wanted to build at the location of the Cowboy Saloon on Second Street. They moved the location to Broadway Street, because Josh Hafron, vice president of General Capital believed the location was a better fit, the Star reported in August.
The 53 units will include, 35 one-bedroom apartments and 18 two-bedroom apartments. A parking garage under the facility will provide parking for 45 vehicles.
Construction is slated for 2017 and the housing will be available for rent in 2018 if plans proceed.