The Charleston zoning board unanimously recommended Thursday for a second time that City Council approves a variance petition for a 56-bedroom apartment complex at Fourth Street and Polk Avenue.

The decision, however, came after representatives of petitioners Chad and Hadley Phillips showed that the real estate investment would yield a profit return lower than reasonable, as set by industry standards.

Chad and Hadley Phillips requested a variance that would allow them to build 22 two-bedroom and 12 one-bedroom apartments, which would be marketed toward students, instead of three- and four-bedroom units, which current code permits.

The number of bedrooms, 56, and parking spaces, 75, would be the same regardless of the variance.

“This property cannot yield a reasonable return under the current regulations,” said Chris Rankin, engineering consultant for Chad Phillips.

Rankin said that under Lyfords Asset Management standards, a developer should not consider rental properties a reasonable investment unless the return on investment is 7 percent.

According to Chad and Hadley Phillips’ projections, three- and four-bedroom apartments on the Polk property would yield a 5.3 percent return. One- and two-bedroom apartments would yield a 6.89 percent return, which means the Phillips brothers would break even on their investment.

The revelation addressed a major council concern. The council opted Aug. 4 to send the petition back to the zoning board for further review, claiming requirements for variance were not met. One requirement is to show that the property in question cannot yield a reasonable rate of return.

Melissa Phillips, wife of Hadley Phillips, said the variance request would not alter the viability of surrounding properties and property values – another requirement.

She said noise concerns should not be a problem because students wanting a quieter lifestyle would be drawn to one- and two-bedroom apartments.

No residents in attendance opposed the actual petition, but Annie Cross, a Charleston resident, opposed the idea of building an apartment complex so close to a single-family neighborhood.

She said the board should take into account the future of the community and be mindful of permanent residents in the area.

“Act on a vision of zoning for this community,” Cross said.

That prompted zoning board member Jim Wood to clarify that current zoning code allowed developers to build on the Polk properties.

Stephen Di Benedetto can be reached at 581-7942 or at sdibenedetto@eiu.edu.