Developers are one step closer to building a $9 million apartment project to replace a blighted former hotel in Irvington.
A group led by the Irvington Development Organization has closed on its sale of state-issued housing tax credits to raise $8.7 million to finance the 50-unit Irving Green development, set to be built on the site of the former Indy East Motel, a crime-plagued property the city shut down in 2009.
Great Lakes Capital Fund, a Michigan-based not-for-profit, provided a $400,000 predevelopment loan and sold the housing credits to a pool of investors, who will own more than 99 percent of the project at 5855 E. Washington St.
Irvington Development Organization, also a not-for-profit, will own less than 1 percent of the project's equity but will lead the development and management of the facility, said Kelly Bernero, a Great Lakes Capital spokeswoman.
A city board last year approved demolition of the hotel, with conditions that the developers secure financing and secure design approval from the Indianapolis Historic Preservation Commission. Another developer and a group of neighbors had argued the building should be preserved and reused.
Construction could begin as soon as this month.