Icon on Bond was recently sold to New York-based Time Equities Inc., which will now receive more than $750,000 in tax-increment financing reimbursements that were awarded to the original developer. Photo by Chris Pastotnik
The city’s Brownfield Redevelopment Authority has reassigned a development and reimbursement agreement it has had with a troubled downtown residential tower for the past eight years to the structure’s new owner.
Time Equities Inc., a New York-based real estate and investment firm, recently bought the Icon on Bond apartment complex out of receivership and is now entitled to receive about $755,000 in tax-increment financing reimbursements that were awarded to the original developer.
Moch International opened the nine-story structure at 538 Bond Ave. NW as a condominium building in 2007, the same year the nation’s housing market collapsed. Amalgamated Bank of New York foreclosed on the building in 2009 after it had loaned the development firm $28.5 million for construction and spent another $6.7 million on related matters like construction liens.
538 Bond at Icon Park LLC and 601 Bond at Turing Park LLC were named the building’s receivers in an order issued by Kent County Circuit Court in 2010. The firms, which are both located on 7th Avenue in New York, recently sold the building to Time Equities. The sale price was not disclosed. Icon on Bond has 118 apartments.
The brownfield payout will be paid to Time Equities over a series of years. The authority’s Jonathan Klooster said this year’s payment will be $93,000. The reimbursement agreement was made in 2005.
The brownfield board also agreed Rylee’s Ace Hardware was eligible for $298,688 in reimbursements for the work the company did to 1205 W. Fulton St., the location of its newest store. The first $250,000 of that total will go toward repaying the loan Rylee’s received last year from the city to assist with the remediation of the property, a site that was a gas station.
The first loan payment, which is due next year, will be $6,172.
The brownfield authority operates the city’s revolving loan fund to help developers clean up polluted sites. The fund’s money comes from the U.S. Environmental Protection Agency.
“All available revenues generated each year will be used to repay the loan,” said Klooster.
Once the loan is fully repaid, the reimbursement’s remaining $48,688 will go to Rylee’s.
Brownfield Authority Executive Director Kara Wood said there are 37 projects that have development and reimbursement agreements in place with the board, and 32 are generating tax-increment revenues from the respective development sites. The revenue is estimated as being worth $2.7 million next year.
Wood said those dollars will reimburse developers, fund the administration of the brownfield authority, and fund a local revolving loan program that will be unveiled in the coming months. Nearly $100,000 is available in the local fund now.
Twenty-four of the projects have submitted the necessary documents for reimbursements, and all have been approved by the board. The expected tax-increment capture from these projects next year is $2.24 million. The authority will keep $153,981 of that amount for its administrative costs.
Wood said the reimbursement documentation for 11 of the 37 projects hasn’t been filed yet. Seven of the 11 are under construction or have been completed. More than $376,700 in reimbursements are available to these developers; the money will be held on their behalf until they file their papers. The board will then review the documents and approve the eligible reimbursements.