MERIDEN — Construction on 81 apartment units at 11 Crown Street is now expected to start in the fall.
Michaels Development of New Jersey, the developer on the project, is waiting on $6 million in state funding that was approved, but not released by the state Bond Commission, said city Economic Development Director Juliet Burdelski.
Michaels had hoped to have the financial closing in April, but now expects to close in June.
“We were thinking April,” Burdelski said. “They are waiting on funding from the state Department of Housing. It’s another piece of funding.”
The state Department of Housing awarded $6 million in tax credits for the $30 million project. An additional $1.6 million will come from the Connecticut Housing Finance Authority. Private equity investment in the project equals about $18.6 million.
Michaels originally planned to build 37 affordable apartments for those below 60 percent of the area-wide median income and 20 units for displaced residents of the Mills Memorial Apartments, considered low income. Twenty four units would have been market-rate, under the plan.
But the City Council agreed to increase the number of affordable and low-income units to 80 percent of the project, or 64 units, with 16 units priced at market rates. The city owns the property.
City officials urged the the council to accept the additional affordable and low-income units to secure needed funding. Some councilors voiced opposition, saying a lack of tenants with disposable income would make the project a greater burden to the city.
The city bought the former Record-Journal property in 2015 for $450,000. The new apartments will consist of ranch-style apartments on four floors and town houses along South Colony Street.
A Michael’s spokeswoman said the financial closing is expected June 15, with construction to start in the fall. Work is expected to be completed by October 2019.
The Michaels project will complete the city’s obligation to replace the 144 low-income units that will be eliminated when the Mills Memorial Apartments is razed this summer. Other new apartment developments, at 24 Colony St., Meriden Commons I and II, also provided low-income units.