Redevelopment of the Historic Louis Joliet Apartments will continue with tax incentives from the city of Joliet.
The City Council this week approved tax increment financing, which provides property tax incentives to encourage development, for the 61-unit apartment downtown.
“Our plan is to reinvigorate the project with these funds,” developer Mike Petry told the City Council Tuesday after it approved the TIF agreement.
Petry said he has already been working on the building, which had a 30 percent vacancy rate when he acquired it.
“We were able to fill nearly all the apartments,” he said.
Petry owns four downtown residential buildings that he has renovated or is working on. He is redeveloping the Barber Building and a building on Chicago Street, converting them into apartments. That project received city incentives.
Mayor Bob O’Dekirk told Petry at the meeting that the plan for Historic Louis Joliet Apartments “furthers the downtown plan” as the city tries to create more residences downtown.
The building at 22 E. Clinton St. was built in 1926 as the Louis Joliet Hotel.
According to a city memo on the Petry project, the building remained a hotel through the 1950s before being converted to a retirement center.
The Alexander Co. acquired the building in 2000 and redeveloped it into affordable apartments units with financing from the U.S. Department of Housing and Urban Development.
HUD requirements that stay in place until 2034 allow
12 units to be rented at market rates, according to the city memo. However, 24 units must be rented to tenants earning no more than 60 percent of median family income, and 25 units must be rented to tenants earning no more than 50 percent of median family income.
The plan is to renovate apartments when people move out, according to the memo.
The redevelopment is estimated to cost $2.1 million.
The TIF incentives will be in place until 2023.