Construction work at Redbud Village scheduled to resume within the next two weeks following the authorization of a $3 million construction loan.
Highlands Residential Services Executive Director Chris Cassetty said the borrowing authorization from One Bank provides the necessary flexibility to move forward with the project while awaiting reimbursement grants from the Tennessee Housing Development Agency.
“I’m hoping we’ll have a couple of good months of time for them to get dried in and we should be in good shape and we’re still looking at being done in May or June of next year,” Cassetty said. “That’ll make it a little tight on us closing out grants, but we’ll get it done.”
Cassetty said the agency currently anticipates a funding gap of approximately $700,000 to $800,000 at the project’s conclusion, which could be converted to permanent debt if a pending application with the Federal Home Loan Bank is not approved.
Cassetty said the contractor is prepared to return to the site to begin pouring concrete pads and starting vertical construction. The project is currently estimated to reach completion by May or June of next year.
“But we’ve gotta have the construction loan to keep moving forward,” Cassetty said. “We’ve gotta do this.”
Cassetty said the site work performed before the project was paused has remained in good condition. While a year has passed since the original bid, Cassetty said the updated contract did not include additional costs for redoing previous dirt work.
“The good thing is, the work they did before we had to stop has really held up well,” Cassetty said. “And I mean, they basically have the pads ready to pour over there.”
Board Chair Robert Owens said the progress is exciting as the agency looks to complete the exterior work before winter. Owens said the board is also evaluating future strategies for the Magnolia Ridge development after recent low-income housing tax credit applications were not funded.
“It’s about where we submit the proposal,” Owens said. “Which category we’re going to get in. Which pool we’re going to get in.”
