COVINGTON - The Covington City Council is doing its part to support residential and commercial development. Monday night the council approved revenue bond issues totaling $46 million for two apartment complexes, and also approved the purchase of electrical equipment for infrastructure needs at Covington Town Center and Nisshinbo.
The city is not liable for the bonds, but must approve their issue as the local jurisdiction so the developer can receive federal and state tax credits. The cost of the electrical equipment is expected to be paid back by developers.
The first of the two bond issues is for $23 million for the Covington Legends Senior Apartments. The council approved a Special Use Permit for the complex at its Jan. 22 meeting.
The Covington Legends Senior Apartments will be a four-story, 198-unit apartment complex at 5188 Clark St., between the Turner Lake Complex and the Clark’s Grove neighborhood. The building will contain 100 one-bedroom apartments, 82 two-bedroom apartments, and 16 three-bedroom apartments.
The apartments will be subsidized by federal tax credits administered through the Georgia Department of Community Affairs. Adults age 55 and older will have to qualify based on 60 percent of their annual gross income.
The bonds will be issued through the city and the Covington Housing Authority for the developer, Covington Leasing Housing Associates III LLLP. The Minnesota limited liability partnership will assume liability for the payment of the bonds, with no liability on the city or housing authority.
The second of the two bond issues is also for $23 million and is for the rehabilitation of the existing Arbor Lakes Apartments, a complex of 250 units on an approximately 50-acre site at 431 Kirkland Road in Covington.
Covington Leasing Housing Associates III is also the developer for the Arbor Lakes project. As with the Legends bond issue, the bond is going through the city and the Covington Housing Authority, but the developers assume full liability for payment of the bonds.
As Arbor Lakes Apartments is in the jurisdiction of the county, the Newton County Board of Commissioners will also have to approve the issuance of the bonds for Arbor Lakes.
Both bond issues were approved by unanimous votes of the City Council.
The council also unanimously approved the purchase of eight concrete vaults from Bates Precast Concrete for a total of $63,040, and $130,630 for the purchase of 10 electrical switch gears and fuses from Stuart C. Irby. The vaults and switches will be installed as part of the electrical infrastructure for Covington Town Center and the expansion of Nisshinbo.
Mayor Ronnie Johnston advised the council that the developers will reimburse the city for the costs of the vaults and switch gears.