Big downtown Boise apartment & YMCA development is threatened. What just happened

Nick Rosenberger
·5 min read
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When developers proposed ideas to Boise’s urban renewal agency in 2021 for one of the largest housing projects the city had ever conceived, the market was booming.

The city saw an onslaught of apartment construction and home building through the COVID-19 pandemic with low interest rates and an uptick in population growth as people packed up their bags and moved to Idaho.

But the market shifted in 2023. High interest rates, increased construction costs and a labor shortage have all contributed to a pull-back in developments. Some developers are freezing their projects and hoping the market will cool. Others are already too deeply into new developments to change course.

These challenges have come to the proposed redevelopment project that would see the construction of a new YMCA, over 400 new apartments and about 30,000 square feet of commercial space.

Developers plan to redevelop multiple blocks of land in downtown Boise just south of Boise High School, which is just outside of this south-looking photo below the lower left corner. The project would move the YMCA, center left, a block south across State Street, and it would construct two buildings, one 15-story and the other seven-story, for hundreds of apartments and ground-floor businesses.



An ambitious project

The proposal was put together as a collaborative effort between developers Edlen & Co., deChase Miksis, Elton Cos. and the YMCA.

The developers would fill two city blocks southwest of Boise High School: the YMCA at 1050 W. State St. and the two buildings and parking lots across the street at 1010 W. Jefferson St.

The agency and the developers plan to demolish and move the YMCA to the northern portion of 1010 W. Jefferson St., called Block 68 North, while commercial and residential development would take its place. The block number came from Boise’s original plat map from the 19th century.

The developers would hold off on the demolition of the YMCA building until its replacement is complete to give members continuous service.

The Downtown Boise YMCA would be relocated from Block 79, at upper left, to a new building in a portion of Block 68, at upper middle. The overall development would include apartments and commercial space on the rest of Block 68, upper right, the northern portion of Block 69, lower right, and all of Block 79 once the new YMCA is complete. Office space would be built on a portion of Block 78, lower left.

The southern portion of 1010 W. Jefferson St., dubbed Block 68 South, would cradle a 15-story building with housing, ground-floor commercial space and a “mobility hub” that would tie into the State Street corridor.

The development would also fill the northern portion of the block shared with Boise Vintage and Lock Stock & Barrel, where the developers would build a seven-story building offering retail and affordable housing. The developers call this site Block 69 North.

The developers would also turn a small parking lot across the street from the YMCA into an office building.

Developers are seeking help to build out nearly three city blocks near Boise High School. The proposed project area is highlighted in this map and includes the YMCA, offices and parking lots.
Developers are seeking help to build out nearly three city blocks near Boise High School. The proposed project area is highlighted in this map and includes the YMCA, offices and parking lots.

Time to move

The city’s urban renewal agency, the Capital City Development Corp., or CCDC, spearheaded the project and put out the request for developer proposals in 2021. But the project is now up against the clock as the urban renewal district the site is located in will expire in September 2026.

Alexandra Monjar, the development’s project manager for CCDC, said the largest challenges projects like this face are macroeconomics and time.

“Other multifamily projects are being shelved or canceled, but the need for a variety of housing types attainable to Boise’s workforce remains,” Monjar said during an Aug. 14 CCDC meeting. “While other projects might be able to wait out these conditions, Block 68 South and Block 69 North cannot be delayed.”

Doug Woodruff, CCDC’s development director, told the Idaho Statesman that while there’s a hard deadline for the project, he’s confident the agency and the developers will finish the project in summer 2026 – before the district’s September 2026 demise.

The development is within the boundaries of the Westside district, which was created in 2002 to spur development directly west of the city’s downtown core. The district is mostly square-shaped and runs from roughly the Interstate 184 Connector as its southwestern corner to 8th and Franklin streets at its northeastern corner.

Woodruff declined to say what would happen if the district expires first.

“We have committed partners. We’re committed to this and we still think that it’s possible to pull off, and so we are going to continue to try,” Woodruff said.

This architect’s rendering shows the 15 -story apartment building proposed on what’s called Block 68 South, which is the southern half of the block along the north side of Jefferson Street between 10th and 11th streets. Jefferson crosses most of the lower front of this rendering, with 10th Street at left and 11th at right.
This architect’s rendering shows the 15 -story apartment building proposed on what’s called Block 68 South, which is the southern half of the block along the north side of Jefferson Street between 10th and 11th streets. Jefferson crosses most of the lower front of this rendering, with 10th Street at left and 11th at right.

Macroeconomic challenges

A letter submitted by Matt Neilson, development manager at deChase Miksis, said financial factors out of developers’ control have increased the project’s projected cost. These include changes to loan requirements and rising interest rates.

Increases in construction costs, operating expenses, property taxes and insurance have also made it harder to profit on a large-scale development.

“Market conditions over the past year have significantly changed,” Neilson wrote. “This has put the viability of the proposed Block 68 South (and Block 69 North) project at risk.”

The developers initially estimated Block 68 South would cost about $118 million, according to Neilson’s letter. That number has now swelled to $133 million. The Block 69 North projected budget increased from about $62 million to $71 million.

Request for help

With the twin hurdles of increasing costs and the Westside District’s expiration, the developers requested changes to the development agreement on Aug. 8 to keep the development alive.

The changes include a request that the developers wait to buy the land from CCDC until after the project is finished. This would save them from having to come up with the money during challenging market conditions. In return, the developers would guarantee to finish the job.

Boise residents may see a massive new project that includes 400 new residential units, a new YMCA and 30,000 square feet of commercial space by 2026. This rendering shows the proposed Block 68 South project.
Boise residents may see a massive new project that includes 400 new residential units, a new YMCA and 30,000 square feet of commercial space by 2026. This rendering shows the proposed Block 68 South project.

The developers also asked for funds to complete public improvements during construction, and they proposed a reduction from 260 residential units to 217 for Block 69 North to reduce the overall cost of the project.

The change in the number of units, however, would not affect the number of affordable units. According to Monjar, they would still reserve 25 units for those making 80% of the area median income, while 130 would be for those making 120% of the area median income, just as the 2021 plans called for.

For a two-person household in 2023, 120% of the median income in Boise is $94,385, while 80% is $57,050, according to city guidelines. Rent for those households would be capped at $2,360 and $1,426 per month, respectively.

In a special meeting Wednesday, Aug. 30, CCDC’s board of commissioners unanimously authorized the agency’s staff to negotiate changes to the development agreement to make the project more viable.

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