Developer to apply for federal tax credits to help finance $43 million projectA new apartment complex with up to 256 units on Bagdad Road could help fill a price gap in Cedar Park's affordable housing, a developer told Cedar Park City Council on March 12.
Carmel, Indiana-based Pedcor Investments proposed the project, deemed Tuckaway Apartments, on 17 acres at the northeast corner of Bagdad Road and Brashear Lane.
The company plans to spend $43 million on the project and hopes to finance the project partly through the sale of tax credits obtained from the Texas Department of Housing and Community Affairs. Pedcor Senior Vice President Craig Lintner said Pedcor will apply for 4 percent noncompetitive tax credits, which the TDHCA awards to offset a developer's federal tax liability and incentivize affordable rental apartments.
Lintner asked City Council to pass a resolution of no objection to the project, and City Council approved the resolution April 9. Council members said the property was already zoned for multifamily use. Unlike some apartment developers, Pedcor is both the landlord and manager of all of its projects, Lintner said.
"Having a broad spectrum of housing that's quality, that's well-maintained and well-managed is a huge [benefit] for the city," he said. "[Local] businesses need a wide array of incomes for their employees. Having good-quality housing will help Cedar Park attract those folks."
The apartment site is zoned for multifamily use and is located near other Bagdad properties that are zoned for commercial use. To the east and south lies property that is owned by D.R. Horton and zoned for a future single-family development called Cedar Grove.
Tom Moody, land development project manager for D.R. Horton, said the company supports the project and hopes to cooperate on shared improvements to area drainage.
Moody said construction on Cedar Grove could start in April.
Lintner said Tuckaway Apartments units are intended for households that earn between $31,000 and $53,000 annually. Average monthly rent will be $914, a price point that is underrepresented in the city, he said.
Moreover, the project will have fewer units per acre than the city's limit of 20, which allows more room for green space, a buffer along Bagdad, and a small park, Lintner said.
The project will also include all-masonry exteriors, a swimming pool and splash pad, a gym and business center, he said.
Lintner told City Council the project would annually generate about $170,000 in property tax revenue for the city. Developers want to meet or exceed all the city's zoning requirements for the project, Lintner said.
