A 1978 senior apartment complex in Columbus, Indiana, is lined up for a top-to-bottom renovation, and the city is negotiating how much the owner pays in place of property taxes while it happens. The Columbus Common Council approved the first reading of a 30-year payment-in-lieu-of-taxes agreement for Fairington of Columbus on Oct. 20 (via Local News Digital).
Fairington, at 2351 Fairington Court, has 136 age-restricted affordable apartments, all backed by a HUD Section 8 contract, according to the council packet. The Gene B. Glick Company plans to rework the property through a Glick-controlled limited partnership.
The work list is long. City documents describe new in-unit kitchens and bathrooms, flooring and doors, elevator upgrades, refreshed community rooms and conversions of some units for ADA accessibility. Outside, the scope covers sidewalks, stoops, walkways, windows, roofs, gutters and downspouts. Local News Digital also reported mechanical system updates, a dog park and outdoor seating.
As for the price tag, Local News Digital put the upgrades at about $23 million. The council packet gives a more detailed breakdown: total project financing of about $23.76 million, with roughly $6.96 million of that in construction costs, or about $51,344 per unit in hard costs. Financing includes mortgage bonds, equity from tax credits and deferred developer fees, Local News Digital reported.
The PILOT is where the city drew a harder line. Glick first proposed paying $40,800 a year, or $300 per unit. City staff negotiated that up to $68,000 a year, or $500 per unit, rising 3% each year. Over 30 years, that adds up to about $3.24 million, all of it going into the Columbus Affordable Housing Fund, according to the packet.
The timing is not immediate. City documents say the deal is expected to close in the second or third quarter of 2027, with the first PILOT payment due by May 10, 2029. The agreement depends on the property qualifying for a state property tax exemption. Affordability will be locked in through a recorded agreement with the Indiana Housing and Community Development Authority. The packet describes a term of at least 30 years under the federal low-income housing tax credit program, while Local News Digital reported a land use restriction of at least 40 years.
First reading isn't final approval. The ordinance still needs another vote, and the council materials don't say when that will happen. The council's next scheduled meeting is Wednesday, Nov. 4, at 6 p.m.
Why it matters for Contractors
This is an occupied-building rehab with a big interior scope: 136 kitchens and baths, flooring, doors, plus roofs, windows and gutters outside. Jobs like that usually get carved into trade packages, which is where local subs and small finishers can get a foot in the door.
Construction is at least several months out, with closing expected in mid-to-late 2027. If you do kitchens, baths, flooring, roofing or exterior concrete in the Columbus area, that's enough lead time to get on Glick's radar or the eventual general contractor's bidder list. Working in occupied senior housing also means scheduling around residents, so crews that are used to tight, clean, phased work will have an edge.
Watch the council agenda for the second reading.