General Capital hoping to transform former post office
Published 9:58 am Wednesday, July 25, 2018
NILES — An associate with General Capital Group showed city council members another presentation to further illustrate the vision for transforming the former post office at 322 E. Main St. into work force housing.
During a committee of the whole meeting Monday night, Vice President for General Capital Group, Josh Hafron showed city council members some proposed renderings of what the building would look like after transformed.
Hafron first present on the idea at committee of the whole meeting in August last year. Since then, the company has fleshed out several of its ideas for transforming the space and continued negotiations with the city.
Initially, Hafron said General Capital Group wants to demolish part of the post office and create workforce housing apartments. Now, the company said demolition will not be part of the plan. The company is proposing creating a 60-unit apartment complex that will be rented as workforce housing. If the project gets approval from the Michigan State Housing Development Authority, the building could be ready for lease by the summer of 2020. Like the August presentation stated, the company still intends to build a new building on the south side of the property, which will be connected to the building with a plaza.
Another new feature in the project is to preserve the post office’s lobby and turn it into a public space that could contain an art gallery. Some other amenities listed for residents would include a fitness area and computer center.
“This is intended for people who want to live close to the city or walk in the city, but also have jobs in the city or have jobs just outside of the downtown to have a nice place to live,” Hafron said.
Hafron said the company is currently negotiating with the city to purchase the property for about $789,000. That price tag includes the restoration of the building’s historic windows, which were replaced earlier this year for about $124,000. The company had made an earlier agreement to pay for the windows if they are given the property.
Hafron explained that this is an affordable housing project, similar to Berkshire Niles, and that residents would be paying rent to live there, based on area median income. Various units for different income levels from 30 percent AMI to 80 percent AMI will be available. The project is not government subsidized or section eight housing.
Hafron said the company is hoping the apartments will attract millennials, although this demographic is not General Capital’s sole target for the project and people of all ages will be welcome to live there.
“Even though it’s a historic building, it will have a very modern interior,” Hafron said. “To create that vibe, there will be strong Wi-Fi throughout the building and contemporary floor plans and styling.”
Another component of the project is also offering section 811 housing, which provides home for the disabled. The program is set up by Housing and Urban Development.
“The idea behind the program is that these folks will now have a place to live in an independent building,” Hafron said.
General Capital Group, a Wisconsin-based company, is already working to complete two other projects in Niles, including Berkshire Niles, which is under construction at the corner of Third and Broadway streets. That building will serve as workforce housing for seniors. The company is under contract to purchase and rehabilitate the Four Flags Plaza.
In the weeks to come, Hafron said he hopes to get the city’s support in the project. He said they will need to obtain a purchase contract from the city, zoning letter, site plan approval, a Payment In Lieu of Taxes, municipal services agreement and a support resolution from the city. Hafron said he expects to have the PILOT and support resolution presented at an upcoming August council meeting.
Hafron said he believes that Niles has a demand for this type of housing.
“It’s a tremendous need and the market study will bear that out,” Hafron said.