Thomas Safran and Associates is expected to break ground in mid-August for two senior housing projects on city-owned lots after the City Council, acting as the Redevelopment Agency, decided this week that the developer does not have to pay construction workers union wages.
Safran had balked at paying the higher wages after a discussion arose earlier this month over whether he should be required to hire union labor. City Atty. Stanley Remelmeyer said this week that the city could not require Safran to do so.
Safran had said paying the higher wages would have increased costs 10% to 30% and that rents at the projects would probably have to be increased.
Safran will build a three-story, 36-unit unit complex at Ocean Avenue and 226th Street, and a four-story, 78-unit structure at Cravens Avenue and El Prado Avenue.
The monthly rents will be $555, but with subsidies could be as low as $350.