A multi-million proposed housing project in the city of Jamestown is getting more help from the Chautauqua County Industrial Development Agency.

Last year the Southern Tier Environments for Living was approved by the county IDA Board of Directors for a $325,000 low-interest loan from the IDA’s Brownfield Revolving Loan Fund for brownfield cleanup and redevelopment.

On Tuesday, Rich Dixon with the county IDA, said the state Department of Environmental Conservation wants more environmental testing. Because of that, STEL requested an additional $275,000 loan.

County IDA Chief Executive Officer Mark Geise noted that the IDA had originally been awarded $600,000 from the state to provide these types of loans. Last week the state gave the IDA another $1 million for further brownfield cleanup and redevelopment.

Since the IDA was awarded the extra money, he saw no problem providing this additional loan.

Geise said the Gateway Project needs the money to do vapor testing, which is what the DEC wants.

Dixon said the loan will be at a 0.5% interest rate for five years. The loan will be interest only for all five years and then a balloon payment will be due for the remainder portion. By that time, the tax credits will be in and they will be able to pay off the loan.

STEL is guaranteeing the loan.

Nate Aldrich with the county IDA said this loan is the type of projects the state wants the money to be used for.

Aldrich reported that remediation work is expected to begin this summer and be completed before the end of the year.

“Subject to further financing of the overall project, they’re hoping to close and start that (work) early next year,” he added.

The Gateway Lofts project will transform the Gateway Center, the former Chautauqua Hardware factory, into a 110-unit, multi-family affordable housing complex, which will be anchored by supportive wrap-around services.

The $77 million project is a collaboration among Community Helping Hands, the YWCA of Jamestown, and STEL.

Once completed, STEL will provide wrap-around services to 40 apartments for people with disabilities and the YWCA will have 15 apartments. The remaining 55 apartments will be generic affordable housing.

All of the apartments will be placed on the second, third and fourth floor.

A number of nonprofit organizations have been discussed for the first floor including Community Helping Hands, Chautauqua County Mental Health Association, and BOCES. There’s also been talk of having a credit union and a pharmacy there as well.