About six weeks after developers of the former Simonsen Ninth Grade Center approached the Jefferson City Council and received approvals for tax abatement, the same developers announced plans to seek low-income housing tax credits through the Missouri Housing Development Commission.
During the Aug. 1 council meeting, Allyn Witt (who with her husband purchased the property in 2020) presented plans to the city, showing intentions to renovate "Simonsen Place" into a 72-unit market-value, modern apartment complex, including quartz countertops, designer lighting and designer cabinets.
Missouri Statutes Chapter 353 allows municipalities to provide an agreement where companies do not pay school, state, county or city taxes on real estate defined as "blighted areas." Witt requested and received abatement of 100 percent real property tax increases.
Witt, who works for Tegethoff Development in St. Louis, pitched the building as a historic site. Tegethoff, which focuses on high-end developments, has developed more than 2,600 residential units during the past six years, totaling more than $700 million in value, Witt said during the council meeting. That equates to about $270,000 per unit.
On Sept. 15, MOCAP Development, LLC, of Jefferson City sent a letter to the city announcing its intent to approach the MHDC about receiving low-income housing tax credits through the commission.
"Simonsen Place will be up to a 72-unit development located at 501 E. Miller St.," the letter stated. "The application to MHDC will be for low-income housing tax credits. Simonsen Place will be restricted to families who satisfy annual income restriction criteria."
All apartments are to be equipped with kitchen appliances, central air conditioning and cable TV. There is to be a common area with a leasing office, fitness room, computer workstations, kitchen and gathering areas. The property would also include outdoor community space.
The deadline to apply for the low-income tax credits passed Friday.
City attorney Ryan Moehlman last week said whether or not the Simonsen Place tax abatement would remain available depended on new development plans. The city anticipates that to continue with tax abatement, the city bill creating the abatement would have to be amended. The developers indicated they would seek a resolution from the City Council supporting a request for low-income tax credits, he added.
Three developers each sought similar resolutions from the council during a Sept. 6 meeting. However, the council was divided. Several council members indicated low-income or workforce housing projects were not necessary in the city. During the meeting, Councilman Jack Deeken said more residents are not needed if they are only making $12-$14 because they "are not helping our economy."
Each of the resolutions was split, with five supporting the resolutions and five opposed. In each case, Mayor Carrie Tergin broke the tie with "yes" votes.
Following the meeting, numerous social service organizations expressed outrage at Deeken and others who voted against the resolutions. Local business organizations, including the Jefferson City Area Chamber of Commerce, sent letters of support for each of the projects to the commission.
In the letter to the city about the Simonsen development, which was signed by Curt Neuenswander, of Farmer Companies, developers said they hoped to "help address the needs of fixed-income families in Jefferson City."
"With widespread community support, we hope to bring the addition of this much-needed housing to fruition," the letter said.
Neither Witt nor Neuenswander responded to numerous requests for comment.