DIA approves $15.45 million incentive package for RISE Doro
The Downtown Investment Authority (DIA) has approved a multimillion-dollar incentive package for the RISE Doro project as the developer prepares to rebuild the luxury apartment complex that went up in flames earlier this year.
Acting in its capacity as the Northbank Community Redevelopment Agency, the DIA at its June 28 meeting unanimously approved the $15.45 million incentive package that includes a Multifamily REV Grant ($11.45 million), a Workforce Housing Completion Grant ($3 million) and a $1 million Emergency Rapid Response Grant. The city would provide the workforce housing completion and emergency rapid response grants.
A DIA staff report said construction costs for the rebuild are estimated at $79.1 million – a 57% increase from the original construction budget resulting in an increased capital investment from the developer.
RISE: A Real Estate Company President Greg Blais told committee members he anticipates an 18-month construction timeframe, aided by the fact that RISE was able to save the existing parking garage structure from the fire.
The Downtown Development Review Board (DDRB) gave its final approval on the project at its May 2020 meeting, and this rebuild will adhere to that approval. The DIA had also approved a $5.7 million REV Grant in 2020, when the project first went before the board for incentives, although DIA CEO Lori Boyer pointed out in an e-mailed statement that “no incentives were paid out under the prior agreement.”
The Doro will feature nearly 5,000 square feet of ground-level space for retail, commercial and restaurant use, a seven-story parking garage with a minimum of 280 parking spots and 247 multifamily residential units, including 15 one-bedroom townhomes, 173 one-bedroom units and 61 1,025-square-foot two-bedroom units.
Plans for the rooftop include a pool for residents and an additional 2,700 square feet for an indoor/outdoor bar for public access.
A new addition to The Doro is the commitment to have 85 of the residential units be workforce housing for prospective tenants not making more than 120% of the Area Median Income (AMI). The recording of a Land Use Restrictive Agreement (LURA) will ensure maximum rents are in place for at least 30 years.
The development had been nearly complete when a three-alarm fire consumed the structure in late January. The fire burned for several days before the 100-plus responding firefighters were able to extinguish it. According to published reports, the cause of the fire has yet to be determined.
Boyer called the fire a “tragic loss for Downtown” and said she welcomed the opportunity to see the project rebuilt.
“I am equal parts excited and grateful that Rise Development is ready to start reconstruction of The Doro project,” Boyer said. “Despite increased construction costs creating a financial gap, Rise has waded into that challenge more than halfway, investing more private capital. To help bridge the remaining gap, and to support both the city’s and DIA’s shared desire to provide more workforce housing, additional financial incentives have been offered.”