NEW BRITAIN - The State Bond Commission will vote Friday on a $6 million loan going toward the city’s Columbus Commons project.
The $58 million project, developed by New York-based Xenolith Partners and Massachusetts-based Dakota Partners, will be a mixed-use property consisting of two six-story buildings. It will contain 160 residential mixed-income units and ground-level retail and office space.
The $6 million, 50-year, interest-free loan would help with the first phase of the project: the building of the first structure.
The L-shaped building will contain 80 new units of rental housing, 64 of them being income-restricted, affordable units.
The Columbus Commons site once was home to police headquarters. The city conducted significant environmental remediation of 125 Columbus Blvd., funded through the state Department of Economic and Community Development’s Targeted Brownfield Remediation program.
The first phase of the development was awarded a $1.6 million Low Income Tax Credit allocation by the Connecticut Housing Finance Authority last spring.
Bank of America will provide the construction loan and permanent loan and also invest in tax credits generating about $16 million in equity for the project.
In addition, the Department of Economic and Community Development invested $2.7 million in Brownfield funds to help with the demolition and environmental cleanup of the site in preparation for the project.
The project officially broke ground in October 2017.
During the groundbreaking, Mayor Erin Stewart praised its proximity to the CTfastrak hub and its potential to attract more shops, restaurants and other services downtown, saying it will help attract more millennials and working professionals to the city.
Supporters of the project expect it to bring new life to downtown.
The State Bond Commission will meet at 10:30 a.m. Friday in Room 1A of the Legislative Office Building in Hartford.
Skyler Frazer can be reached at 860-801-5087 or by email at email@example.com.