The State of Indiana Housing & Community Development Authority has granted a tax credit of more than $1 million, which will allow the first major Stellar Madison project to soon get underway.

The City of Madison and Denton-Floyd Real Estate Group announced Friday evening that Riverside Tower Lofts — planned for what is locally known as the Tack Factory — could move forward as soon as December.

“This is an exciting time for Madison. Our community has waited years for a number of projects to come to fruition, and this is just the first of many you’ll see over the next few months thanks to our Stellar designation,” said Madison Mayor Damon Welch. “I am grateful for the partnership we have with Denton Floyd and the rest of their team who have worked tirelessly to make this happen. I am also appreciative to IHCDA, OCRA, our city boards and commissions, and members of my staff, especially Nicole Schell who made sure this project could move forward.”

The Riverside Tower Lofts represents a proposed investment in excess of $9 million in Madison, according to a news release that announced the tax credit.

The site was originally constructed in 1896. The factory was a once “a beacon of local industry, manufacturing tacks, nails, brads, pins, rivets, cotter pins, electric fence wire, guy wire, hooks, picture hangers, and plate hangers,” the news release said. The facility was closed in 2007 and has remained vacant since.

The Indiana Housing and Community Development Authority awarded the development $1,021,652 in Rental Housing Tax Credits. In conjunction with this credit award, the City of Madison has awarded a real property tax abatement and agreed to assist with ancillary public improvements to support the project. Financing on the project has been approved and financial close is expected in mid-December with construction expected to begin shortly after the closing, the news said.

“This project is an example of why we pursued the Stellar Designation with such passion. A project of this magnitude would not have been possible without the tax credits provided by IHCDA,” said Andrew Forrester, the city’s director of community relations. “I am ecstatic about getting this project moving forward and look forward to many more exciting projects taking shape over the next few years.”

Denton Floyd’s adaptive re-use of the former Tower Tack Factory will create 50 senior housing units. The investment is a direct result of the Stellar Communities Designation and the project was included within the City of Madison’s Strategic Investment Plan, the news release said. The Riverside Tower Lofts is proposed to include 42 one-bedroom units and 8 two-bedroom units with age restricted to households 62 and older.

The development itself supports Madison’s strategic investment plan objectives of historic re-use and neighborhood revitalization. Riverside Tower Lofts will also offer residential amenities like bike racks, golf carts, a gazebo with an outdoor gathering area, an exercise room, a community room/common space area and on-site laundry facilities.

“We are pleased to be a part of this project in Madison, which will save a historic structure and revitalize a neighborhood with new energy and residents. Mayor Welch and his entire team have been attentive to our needs and their enthusiastic participation brought this project across the finish line,” said Brandon Denton, co-founder of Denton Floyd Real Estate Group. “I am excited that this project will meet the needs of the Madison community and be a source of pride on the west end of downtown.”

The Stellar Communities program, launched in 2011, is a multi-agency partnerships designed to recognize Indiana’s smaller communities that have identified comprehensive community/economic development projects and activities as well as next steps and key partnerships. Participating funding agencies include; the Office of Community and Rural Affairs, Indiana Department of Transportation, and Indiana Housing and Community Development Association. Madison was designated a Stellar Community in 2017. Stellar projects normally are related to infrastructure, such as roads, parks, utilities, downtown redevelopment, housing rehabilitation and new housing projects, as well as streetscape improvements. In Madison, the community helped leaders identify the most important infrastructure projects through open houses and public input surveys at various stages over the last few years. Many of these projects have been asked for by the community for some time, but because of financial or development difficulties, they need an extra “push” that Stellar will help provide.