Iola Industries asked Allen County commissioners Tuesday morning to give it a two-year option on a portion of the old Allen County Hospital grounds for construction of apartments adjacent to where G&W Foods will build its grocery.
The county would receive a non-refundable payment of $10,000 up front and another $10,000 when the option was exercised.
Immediate response was favorable from two commissioners, Jerry Daniels and Tom Williams. The third, Jim Talkington, was reluctant to make a commitment, saying he had concerns and wasn’t “100 percent on board.”
Next step, preceding accord on the option, will be for County Counselor Alan Weber to prepare a contract, which commissioners and principals of Iola Industries will review.
“I’m perfectly fine with the idea,” Williams said, allowing that he would concede to those who would design the apartment buildings and decide how they would fit in with the grocery. G&W engineers also would be expected to have input.
Talkington’s concern was the retaining wall that fronts Madison Avenue as it curves into East Street (both parts of U.S. 54) just northwest of the site. He suggested removing the wall to give motorists a better line of sight.
Williams countered he was unaware of a proliferation of accidents because of the curve, and that finding out the number over recent years might be a good precursor to proposing any changes in terrain. Weber said he thought such a requirement would make building the apartments directly north of the grocery more difficult. That site is favored by the developer, he added.
Iola Industries has been in talks with Tom Carlson, a Springfield, Mo., developer.
According to a letter from John McRae, Iola Industries president, “discussions have centered on constructing up to 40 new apartment units … surrounding the property being purchased by G&W Foods. These units would be two-bedroom, market-rate units (no subsidies or set-asides for low/moderate income residents).” The intent also is to have the project be financed locally by Allen County banks.
Carlson previously constructed 60 housing units near Iola’s Cedarbrook Golf Course.
“The discussions with Mr. Carlson are now at an advanced stage,” McRae continued. Two phases of 20 apartments would cost about $1.5 million each to build. The third phase, six to eight townhouses/duplexes, would cost $800,000.
The apartments would be north and east of the old hospital, the third phase on half a block, including a vacant house today, south of Madison Avenue where it extends on to the east, between First and Second streets.
If the county agrees, construction could begin as early as spring.
“A project of this magnitude has a high degree of risk and requires a leap of faith by all parties,” McRae said. “It has tight margins and is largely speculative — it literally has been decades since the last market rate apartment complex was built in Allen County. However, we are confident the development team that is being assembled is geared for success. With the county agreeing to this proposal, we can construct a new neighborhood that will be a source of pride for the entire county.”
DEVELOPING apartments adjacent to the G&W grocery would fit into proposals made by Mark Fenton, an engineer who has been in the county the past two days to give tips on how to make communities more cohesive. He also has mentioned how such things can affect economic development.
“I really like the idea of apartments near the grocery,” Fenton told the Register Tuesday, pointing out residents, and others living nearby, could walk to the store.
He also had some suggestions (they’re fleshed out elsewhere in today’s Register) for making U.S. 54 safer for pedestrians — school kids often cross at or near its intersection with First Street — and motorists.
