HARLINGEN — Developers have appealed the state’s decision to deny federal tax credits for a $4.3 million project to turn the city’s tallest building into largely low-income apartments.
Last month, the Texas Department of Housing and Community Affairs denied MRE Capital’s request for $3.3 million in tax credits, arguing the developer had failed to adequately address project costs and property management and maintenance expenses as well as the 90-year-old Baxter Building’s structural condition.
On Sept. 7, the agency’s board of directors is expected to hear the appeal, said Jill McFarren, a spokeswoman in Austin.
In a July 31 letter, MRE states it has had other projects that “followed the exact style, scope and length” that had qualified for federal tax credits.
MRE also argues its proposed project will rehab the nine-story building constructed in 1927.
“Ultimately, gut rehabs are very different than a standard rehabilitation project in scope and cost,” the letter states. “Other than the exterior skin and the main structure of the building, all systems will be new in year one …. A building such as Baxter Lofts, when renovated, more accurately acts as a new construction (all new systems- development within the body of a historic structure.”
MRE also stated its cost estimates are accurate.
For more on the story read Tuesday’s Valley Morning Star.
