State panel rejects tax credits for Cape low-income housing

With overwhelming needs in tornado-torn Joplin, Mo., a $6 million low-income apartment complex proposed in Cape Girardeau has been rejected by state housing officials for tax credits this year.

The Missouri Housing Development Commission did not approve MACO Development's application, meaning the project planned for the west-central part of the city won't happen this year.

"We were absolutely disappointed," said Jason Maddox, executive vice president of the Clarkton, Mo., development company.

But he said he wasn't necessarily surprised, noting that it was widely known that the "lion's share" of the credits would go to Joplin, which was torn apart by a catastrophic tornado last May.

"We knew because of what happened in Joplin that the resources were going to be extremely limited this year," Maddox said. "It was going to be very, very competitive."

More than 40 percent of the available $25 million in credits went to Joplin. MACO had other applications in the state, including in Poplar Bluff and Sikeston, and none was approved for federal and state tax credits either, he said. MACO, which owns 12,000 units across the Midwest and has three senior housing developments in Cape Girardeau, had intended to build an initial 48 units targeted to families on 12 acres at the north end of Silver Springs Road near Spruce Street.

MACO's application this year was for $600,000 in state and federal tax credits annually for 10 years. Maddox said the company intends to apply for tax credits again when the process begins anew this fall. He described his confidence level as "very high" that the project will happen in Cape Girardeau at some point.

But it may not be at that spot.

The Missouri Housing Development Commission, which awards tax credits to the projects, also requires a proclamation of support from city councils. MACO got such a resolution from the Cape Girardeau City Council in October, but it was on a 4-2 vote with opposition from councilmen Mark Lanzotti and John Voss.

Lanzotti in particular argued that the proposed development, near other apartments and single-family homes, was "already strained" and he worried it would create more traffic.

So MACO has looked at other sites, Maddox said, although he would like to build on that property with plans for future additions.

"We love to have overwhelming city support. I don't feel like we had that last year," Maddox said. "It just seemed like Mr. Lanzotti would never get onboard. Maybe that hurt us. I'm not sure."

On Monday, Lanzotti said his concerns have not dissipated.

"We would welcome any new proposals and take a look at them," Lanzotti said. "But if the proposal mirrors those of the past, then my concerns will be the same."

smoyers@semissourian.com

388-3642

Pertinent address:

Silver Springs Road and Spruce Street, Cape Girardeau, MO