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Trail Side funding finally closes

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Financing for construction of a $10 million, mixed-use building at 875 Massachusetts Ave. closed Dec. 22, allowing developers to proceed with the project after a funding snag nearly killed it.

The four-story building, called Trail Side, is to include 10,900-square-feet of first-floor retail space and an underground garage with 69 parking spaces. The second, third and fourth floors are to house 69 one-bedroom apartments for tenants who earn between 30 percent and 60 percent of median income. Rents will range from $325 to $700 a month.

The project, which is being counted on to breath new life into the east end of Massachusetts Avenue, is being developed by Riley Area Development Corp. and Monument Realty. The building will be built on land leased from the Center Township Trustee, which owns a vacant structure on the site that will soon be demolished.

The ground lease and Trail Side’s tax-credit financing almost caused the deal to unravel.

The developers overcame numerous obstacles last year, including concern from neighbors that there wasn’t enough parking and initial reluctance on the part of the Center Township Trustee to sign the 45-year ground lease.

In early November, Alliant Capital, the syndicator lined up to buy the tax credits sold to finance the project, informed the developers it needed a 55-year ground lease to make the credits marketable to end users. It’s unlikely the state-sanctioned tax credits would have been available had the deal not closed before the end of the year.

The Center Township Trustee agreed to the 10-year extension with little time to spare, said Bill Gray, executive director of Riley Area Development Corp. Gray said the project is the most complex, from a funding standpoint, that his group has ever attempted.

Now that financing has closed, demolition of the vacant trustee building should start in February. Construction will commence once the site is cleared and should take about eight months.

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  • great news!
    Glad to see this project moving forward! That website leaves a lot to be desired, however... lol
  • Trailside design
    You can see the design at www.trailsideonmass.com
  • Good news
    it is great to hear about development along mass ave. I hope the design will be something to envy and not something forgotten. I wonder what will happen to the old brick warehouse/factory buildings located near there. It would be neat to see them reused in some way.

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    1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

    2. Shouldn't this be a museum

    3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

    4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

    5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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