State officials approved $17 million in tax credits for the 74-unit low-income housing project being built at the Argus Mill on Van Houten Street.
New Jersey Economic Development Authority (EDA) approved the Economic Redevelopment and Growth (ERG) tax credits on Wednesday. Argus Ellison Associates is a partnership between Lagos Partners and WinnDevelopment. Lagos Partners is controlled by Owen Tonkins and Daryll Tyson.
“We are excited that our Argus Ellison Development was approved for $17mm of NJEDA ERG tax credits,” said David Ginsberg, vice president for WinnDevelopment. “This is an important step to our anticipated closing this summer. This project will be transformational for Paterson’s Great Falls Historic District.”
The project is situated at the 1.3-acre site at 1-9 Van Houten Street, 3-9 Mill Street, and 9-17 Ellison Street. As part of the project, the Argus Mill, built in the late 1800s, will be rehabilitated, and another six-story building will be constructed to create 74 apartments for families.
The Argus Mill will have 6 two-bedroom apartments on the upper three floors. It will also have a lobby, office, and program space on the lower level.
The other 68 units – one, two, and three-bedroom apartments – will be in the 6-story mid-rise building.
The Ryles/Thompson Houses will remain at the site and serve as management and nonprofit office space.
52 apartments will be supported by vouchers from the Paterson Housing Authority and Passaic County Interagency Council on Homelessness.
A 74-space elevated parking deck will be constructed – spaces will be reserved for tenants – as part of the project.
The Grandparents Relative Care Resource Center, which has a ten-year agreement to use 1,400 square feet of space, will provide social services to tenants.
The project is mostly funded by state and federal funding. Paterson is contributing $1.49 million to the project — $600,000 from federal HOME grant and $890,000 from Regional Contribution Agreement (RCA) funds.
The city also granted the project a 30-year tax abatement or payment in lieu of taxes (PILOT) agreement.
Argus Ellison Associates will receive $2.23 million in developer’s fee, according to state records. He has to finish the project by December 31, 2023, according to state records.
Economic development director Michael Powell said the project will likely be completed before December 2023. He said the developer still has to go before the New Jersey Housing and Mortgage Finance Agency (HMFA) board to secure financing. He said construction for the project is expected to begin in late July.
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Updated 10:09 p.m.