LEWISTON — City officials approved financing agreements for two separate senior housing projects Tuesday as developers look to close gaps in financing and get construction underway.

The city approved credit enhancement agreements for each phase of the 88-unit Martel School Apartments, which will be affordable senior housing. Then, the City Council approved an extension of a previous agreement with developer Dave Gendron for his 208-unit Gendron Active Living Estates off Farwell Street, which will cater to those 55 and older.

While the two projects differ in their housing type and financing, city staff said the current development atmosphere is difficult due to financial markets and the cost of construction.

Nate Libby, director of economic and community development, said most developments in Lewiston’s post-pandemic economy have requested credit enhancement agreements in the 70%-75%  range. That means the developer is reimbursed roughly three-quarters of new property taxes generated by the project.

The Martel School deal will return to Lewiston Housing 75% of new property taxes for 16 years for Phase 1, and 17 years for Phase 2. Each phase will build 44 units, with an estimated post-development value of $4.87 million.

The tax revenue generated over 20 years is $1.8 million, with the developer retaining $1.3 million and the city receiving $548,000.

On Tuesday, members of the public urged councilors to approve the agreement to avoid any further delays for a project that has been talked about since 2019. A representative from Lewiston Housing said the organization hopes to break ground this fall.

The units in Phase 1 will be available for seniors making 50% or less of area median income, which according to Libby is roughly $29,000. He said the average area senior living off Social Security receives about $21,708.

Staff said Lewiston Housing has over 1,090 households on its waiting list for public housing, with 737 (65%) seeking one-bedroom units, and 298 applications from seniors ages 55 and older.

The council voted unanimously in favor of both Martel agreements.

Libby said for the Gendron project, Gendron has “expressed his commitment” in getting the project done, but all parties are hoping the 18-month extension will allow financing to come together.

The market-rate housing development is expected to cost $46.5 million, and the agreement with the city provides a 75% reimbursement of new property taxes generated by the development for the first five years, followed by a 65% reimbursement for 15 years. The three phases of development are planned to come online at two-year intervals.

Libby said the credit enhancement agreement has milestones built into it, including that Gendron has financing for all three phases in place and that the first phase is complete by the end of 2027.

The council vote was 6-1, with Michael Roy opposed. Roy, who lives in the neighborhood, said many of his constituents and neighbors have been against the project since the beginning.

Other officials, including Mayor Carl Sheline, praised Gendron for his “tenacity” in pursuing the market-rate development despite challenges.

“I appreciate that you’ve stuck through it,” Councilor Josh Nagine said.