Neighbors question proposed McCarty Street apartments

Maximillian Howell, far right, and Dan Sailer, both of Kansas City-based MRE Capital, discuss their proposal to build apartments in the 700 block of East McCarty Street to a group of concerned residents and property developers Thursday afternoon. Among the audience were, from left, 2nd Ward City Councilman Rick Mihalevich, Donna Deetz and Laurelanne Bellezzo.
Maximillian Howell, far right, and Dan Sailer, both of Kansas City-based MRE Capital, discuss their proposal to build apartments in the 700 block of East McCarty Street to a group of concerned residents and property developers Thursday afternoon. Among the audience were, from left, 2nd Ward City Councilman Rick Mihalevich, Donna Deetz and Laurelanne Bellezzo.

Neighbors raised numerous questions Thursday about a proposal from Kansas City-based MRE Capital to build a 50-unit apartment complex in the 700 block of East McCarty Street.

"We've got a long history in the state of Missouri and in Kansas, Oklahoma, Texas," co-founder Dan Sailer told nearly three-dozen people at a meeting at the High Street Retreat, 712 E. High St. "(We do) a lot of historic development - which I know is important to you - as well as new construction."

Maximillian Howell said he and Sailer came to Jefferson City to explain their project and help clear up misunderstandings.

Although the numbers aren't finalized, they envision a mix of one-, two- and three-bedroom apartments that would rent for around $600 a month, targeting working families earning around $24,000-$28,000 a year.

They see their project as a catalyst for additional developments and additional economic interests. "Right now, we're looking at 50 units of apartments coming in, and we're trying to make sure that the design and aesthetics are of a historic base and meet city requirements," Howell said.

They would finance the project mainly through about $8 million from the Missouri Housing Development Commission, which provides developers with federal grants requiring the developer to make at least a 15-year ownership commitment.

They estimate the total cost at about $10 million, with loans covering the costs not covered through a grant.

The developers want to submit their application by Tuesday, so the MHDC can consider it this year.

If the state board approves the project, Sailer said, the developers still would have to win approval from Jefferson City's Planning and Zoning Commission and City Council. It would be 2018 before they could begin construction.

"We've got a year-long period, essentially, to plan our development," Howell said. "We want to really pull together as much information as we can and really get something that everyone here can really rally around and support, top-to-bottom."

Donna Deetz, who owns several properties just north of the half-block MRE Capital site, noted the city's "Old Town" Commission was formed with one of its goals being "to get single-family, affordable housing back on the East Side."

An apartment complex would conflict with that goal, several people told Sailer and Howell.

"Most of us have our businesses and our residences" in the area near the proposed project, Deetz added, "and these are all buildings that we have re-habbed just trying to get up to what they used to be."

Some opponents of the project noted a 50-unit complex would bring an average of about 200 new residents to an already crowded area - including about 50 children who most likely would attend the already overcrowded East Elementary School.

Sailer said a 50-unit complex would provide a full-time manager, security and maintenance.

"If we go to 30 units, then I've got a part-time manager," he said, "because at the end of the day, we're operating a business that needs to generate income to pay for these amenities."

Tammi Creason, of Nixa, explained the proposal during last month's Historic Preservation meeting, saying several existing properties would need to be acquired and razed to make room for the project.

According to the Cole County assessor's website, seven properties remain in the half-block area targeted for the project. All are at least a century old.

The website said the oldest of those is 312 Cherry St., built in 1880, while the two "newest" properties - 316 and 320 Cherry St. - were built in 1907.

Creason, who did not attend Thursday's gathering, told last month's Historic Preservation meeting the developers didn't "believe what is there is salvageable."

Several of the people attending Thursday's meeting noted a number of older homes in Jefferson City have been rebuilt into tax-paying properties, even though they also weren't considered salvageable.

Howell said Creason had worked mostly with city officials, and his company's goal now is "to try to figure out if there is some common ground that everybody can agree on - just some basic ideas that development can bring."