Renovation of the ONECC will allow for the retention of 45 jobs and will create 15 temporary construction jobs. More importantly, it will allow for the preservation of essential community programs – including early education, family services, recreation and cultural opportunities, and workforce development – to remain in the heart of the ONE, a low income community.
Gap and Investment
Below market, affordable and flexible leases offered by CHT support the operations of the nonprofit tenants, who rely on low or no fees, grants and subsidies to provide enriching services to a diverse and low income population. Rental income under the lease agreements in place is insufficient to service market rate interest only payments in addition to the other debt the project will carry. To service just the interest on market rate debt, the ONECC would need significant additional income resulting in increases to the nonprofit tenants’ rent. Those added costs would be a burden to the nonprofit organizations, forcing cuts in programs and staff and ultimately fewer low income persons being served.