City, developer await word from Iowa Finance Authority
A property group has taken the next step in moving forward with a development in Washington.
Washington City Administrator Brent Hinson said Overland Property Group submitted its application to the Iowa Finance Authority (IFA) on Dec. 9, for the 32-unit project in Washington.
Of the 38 applicants for state funding last year, 12 were accepted, Hinson said—two of which were from this development group, one in Pella, and one in Storm Lake, according to the development group’s Web site.
Hinson is very optimistic about the group’s chances for funding for the development. He said there were a couple of things that would help make the project appealing to the Iowa Finance Authority.
“Everything is there for the development,” he said. “It’s on a paved road, the grocery store is right around the corner, and all of the utilities are already in place.”
At the city council meeting on Dec. 4, the council voted unanimously to approve a resolution of intent, which would provide $350,000 of Tax Increment Financing (TIF) for the development group over the next 15 years, as reported in The Journal’s Dec. 5 edition.
Now, the city and developer wait for a decision from the IFA as to whether or not the project will be awarded a tax credit, Hinson said.
“We won’t find out until next March if this project is approved for funding,” he said.
If funding were approved groundbreaking probably wouldn’t be until fall 2014, with the opening date not until 2015, Hinson said.
The project is estimated to be around $6 million dollars, with two 16-unit buildings on the site, and would be built on West Monroe Street, Hinson said. These would be rent-controlled units based on income.
Overland Property Group also approached the City of Oskaloosa with plans for a rent-controlled development, Hinson said. He said the group also moved forward with Oskaloosa, but Washington still has the most appeal for funding.
“I got the sense, as things moved along, they had every intent of doing both,” Hinson said. “Ours would be a better scoring development, so when funding is picked I tend to think we have a better chance.”
The Journal contacted Brett Johnson at Overland Property Group for comment about the Washington and Oskaloosa projects, but Johnson wasn’t available before press time.