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Local poverty outreach nonprofit the Macdonald Center plans to break ground on its new $10 million Old Town project July 1.

Since purchasing the Satyricon music venue – located at 125 N.W. Sixth Ave. – for $1.5 million last spring, Macdonald Center staff has been working out a plan to tear down the building and construct a new one.

LMS Construction will hand demolish the building – previously known as the West Hotel – beginning July 1. Then in mid August local construction firm Howard S. Wright will begin constructing a new building that will house 42 studio apartments for individuals making 60 percent of the median family income or less. The building will also house new offices and support space for the Macdonald Center, which is currently located down the street at 605 N.W. Couch St.

According to Pat Janik, executive director of the Macdonald Center, the project is currently going through environmental review and the permitting process. Even though there are still a lot of steps left to go through, she believes that the timetable is feasible.

The project is funded predominantly by $6.3 million in federal Low Income Housing Tax Credits. The rest of the project is being paid through private donations.