Bradenton's 14th Street West redevelopment project in limbo

BRADENTON -- A project considered crucial to downtown Bradenton and the overall redevelopment of the troubled 14th Street West corridor is in limbo after Sarasota-based Beneficial Communities was unsuccessful in obtaining federal government financing.

Last summer, Beneficial agreed to pay the city of Bradenton $700,000 for three acres of now vacant land, pending its ability to win needed tax credits. Its proposed project for the old Manatee Inns site at 1404 14th St. W., within the newly expanded boundaries of Village of the Arts, would feature more than 80 housing units that would be marketed toward younger professionals.

Despite missing out on the tax credits, Beneficial still scored fifth out of more than 60 applications. However, the federal government is only funding the top three projects in this cycle, two of which went to projects in Orlando.

Beneficial representatives, who could not be reached for comment Friday, said this past summer that there was only a 10 percent chance of being successful. They aren't giving up just yet as they vet the four projects that scored higher in an attempt to prove their project is better.

But it isn't looking good, according to city administrator Carl Callahan.

"This group is still very interested in moving forward, but they didn't fare well on the tax credits," said Callahan. "They are still running through their due diligence period but are looking for an extension."

During this past summer's lengthy process, project manager Brian Jones said private development of the site was not an option, since it would require charging tenants higher rents comparable with what it costs to live on the downtown riverfront -- thus making the option unaffordable for many artists and young professionals who want to live in Village of the Arts.

Beneficial is scheduled to meet with the Downtown Development Authority on April 5 to update the board on the tax credit appeal process and then will meet with the city council April 13.

"They are quite willing to move forward and are contesting the tax credits," said Mayor Wayne Poston. "They believe they have a good story to tell to the people who were subjective during the ranking process."

Poston said the city was willing to move forward with Beneficial but stopped short of saying he would support an extension on the purchase agreement, which is dependant on Beneficial securing funding. Poston said there may be more opportunities for the old Manatee Inns site than there were last year.

"If we get a cash buyer come in, all bets are off," said Poston. "We may have an opportunity for different projects to come in that could move forward more quickly ... and (Beneficial) understood that from the beginning."

Mark Young, Herald urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter@urbanmark2014.

This story was originally published March 25, 2016 at 12:09 PM with the headline "Bradenton's 14th Street West redevelopment project in limbo ."