New apartments may offer rents of $450 to $600
PRESCOTT — A 70-unit apartment complex currently under review for central Prescott reportedly would offer monthly rental rates that would be well below the community’s average.
Developers say a complex planned along Miller Valley Road would offer two- and three-bedroom apartments that would rent in the $450-to-$600-per-month range.
That would be significantly less than the $779-to-$905 monthly rent rates that an online data site, rentjungle.com, reports as the median rates for two- and three-bedroom apartment in Prescott in November 2016.
The proposed Creek View Village still has a number of city reviews to go before it is approved, however. It crossed one of those hurdles this week, when the Prescott Planning and Zoning Commission recommended approval of the project’s site plan.
Still to come is commission consideration of a zoning change (from industrial to business) on Dec. 29, as well as City Council consideration of both actions.
The project also would need to acquire water allocations for the bulk of its units in 2017.
If all goes as planned, Bethel Development plans to build the complex on about five acres of undeveloped land on Miller Valley Road, adjacent to the McDonald’s restaurant.
Bethel’s Director of Acquisitions Mark Shoemacher told the commission Thursday that the company plans to seek tax credits from the state for a workforce housing designation.
If successful with the tax-credit application, he said the project would be obligated to offer workforce rental rates for the next 30 years. Based on current criteria for those rates, he said the apartments would rent for $450 to $600, with most in the $500-per-month range.
The complex would include 44 three-bedroom apartments, and 26 two-bedroom units, and the units would be split into six separate buildings.
While the commissioners had mostly favorable comments, some questions arose about the access to the complex off Miller Valley Road. Commissioner Terry Marshall asked if the single entrance, offering just “one way in and one way out,” would be adequate for the 70-unit complex.
Prescott Traffic Engineer Ian Mattingly responded that the developers had agreed to move the apartment entrance farther from the McDonald’s entrance to allow more spacing between the two. But, he said, “To put another driveway along that short frontage wouldn’t really serve any purpose.”
Other commissioners questioned the approval process for water allocations. Officials explained that the city did not have enough water available in its 2016 budget to allocate for the entire 70 units. But to get Creek View Village in line for an allocation from the 2017 water budget, the Council Water Committee earlier recommended allocating enough water from this year’s budget to cover the complex’s first building.
That raised concerns from Commissioner Ken Mabarak, who worried that phased water allocations could result in projects “stopping and starting” in the city, as they await water allocations.
But Shoemacher told the commission that the company would not begin the project until it has enough water allocated to complete the entire project.
If the city approves the project as planned, Shoemacher said construction could be underway by early 2018, with completion expected nine to 12 months after that.
The Creek View Village project is just the latest in a series of apartment complexes to get recent city approval. Water Resources Manager Leslie Graser told the commission that nearly 1,000 new apartment units are currently on the books.