Artists loft project buys property

Published 7:40 pm Wednesday, December 24, 2008

EVERETT — A nonprofit developer this week bought a city parking garage with plans to build an arts center and low-income apartment building, scheduled to open in less than two years.

After more than four years of talks with the city of Everett, Minneapolis-based Artspace bought the garage in the 2900 block of Hoyt Avenue. Demolition of the garage is scheduled for January.

“Given these economic times, closing this project was extremely challenging,” said Cathryn Vandenbrink, a regional director for Artspace.

Deputy City Attorney David Hall called the transaction extremely complex, in part because of the number of lenders and the international credit crunch.

The four-story building is expected to cost $17.2 million.

When it opens in May 2010, the building is expected to include 40 affordable apartments on the upper three floors, where artists can have work space in their homes. It will also house a street-level visual arts education center owned and run by the Arts Council of Snohomish County.

The original plan was for the city to lease the land to Artspace and the Arts Council for a century. Now it is selling the land to the groups, but the full payment isn’t due for another 100 years, plus 1 percent interest each year.

Vandenbrink said the project will be constructed through funds from the city, Snohomish County, the state of Washington, low-interest tax-exempt bonds and low-income housing tax credits.

Part of the challenge, she said, was finding purchasers for the tax credits. Few investors are still buying the tax credits, which Artspace has sold in the past to fund a good share of the 18 similar arts communities that it has built around the country, including two in Seattle.

In addition to sustaining hundreds of construction jobs, Vandenbrink said the building will provide much-needed affordable housing and will create a gathering spot for the community.

Musicians from the Everett Symphony, actors and singers with the Historic Everett Theatre, crafts people, artists, writers and photographers are among likely tenants of the building, she said.

Rents vary widely at other Artspace properties. Leases are based on different factors, including median income and market conditions. To qualify, residents can’t make more than 60 percent of the median income in their community. Right now, the threshold is $34,200 for a single person and $39,060 for a couple.

Lanie McMullin, economic development director for the city, said a vibrant arts scene such as the one building around the Comcast Arena will help make downtown Everett a more desirable place to live.

“Eventually housing will do more to revitalize downtown than anything,” she said. “But in order to draw people to want to live downtown, you need to have things to do. This is this is just another piece of that puzzle.”

Reporter David Chircop: 425-339-3429 or dchircop@heraldnet.com.