“Site issues and construction issues created a situation where the building needed to be redesigned and the most cost-effective way to do that was to add the additional 30 units,” said Kenneth Becker, president of Provident Development Group of Atlanta.
The earliest construction could begin on the 75,000-square-foot building is mid- October with an opening date about 12 months after, Becker said.
The original plan was for one-bedroom rental units averaging 400 to 500 square feet of living space and a split of 55 units for assisted living and 23 units for residents with dementia. The new breakdown with the additional 30 units remains undecided as does the cost of renting the units.
“We will probably be looking to set the rates in about two months,” Becker said.
Most of the project is financed through the Development Authority of Cobb County, which granted Provident a special financing resolution Tuesday that will allow investors to earn tax-exempt interest on the $14.5 million in bonds issued by the Development Authority and purchased by a financial institution.
Development Authority attorney Dan McRae said the bond deal will allow the developer to potentially save several hundred thousand dollars.
The development is on a 10-acre parcel. The proposed building would be built on half of that property. Becker said he’s still deciding what to build on the other half.
“No decisions have been made about what we’re going to do, but we are looking to develop that back parcel of land sometime in the next year or so,” he said.
Becker said the Smyrna City Council already approved the original plan, but he must get a variance for the increased density. City spokeswoman Jennifer Bennett said the council could consider that as early as Sept. 16.
In addition to the $14.5 million in bond proceeds, Becker says Provident has $3 million in equity going into the project, for a total cost $17.5 million.
Development Authority Chairman Clark Hungerford supports the project.
“I think with what’s going on with the so-called graying of America with more retired people coming to this area it gives them a good location to be,” Hungerford said.