HARLINGEN — Developers will appeal a state decision denying federal tax credits in the $4.5 million project to renovate the 90-year-old Baxter Building.
The Texas Department of Housing and Community Affairs denied developers MRE Capital tax credits to turn the city’s tallest building into a largely low-income apartment development.
But the agency placed a total of $3.3 million in tax credits on hold pending appeal.
The agency said the developers failed to adequately address project costs and property management and maintenance expenses as well as the nine-story building’s structural condition.
The decision surprised city officials after the agency highly scored the project in its preliminary review.
For the second time in two years, the decision marked a set-back for Mayor Chris Boswell, who has planned on the renovation of one of the city biggest eyesores as a key to revitalizing the downtown area.
City Manager Dan Serna said the decision will be appealed.
