The Clinton Herald, Clinton, Iowa

Clinton

February 14, 2013

Council unanimously supports development of Wilson Building

CLINTON — The $7 million renovation slated for the Wilson Building is receiving unanimous support from Clinton City Council members after they reviewed the development deal being offered to the Cedar Rapids investment group considering the building for market-rate housing.

City of Clinton officials won’t offer cash up front to Frantz-Hobart, which is considering the Wilson Building for 28 market- rate apartments, but the first details of the development deal between the two shows the city will offer a number of incentives to secure the downtown housing.  

Frantz-Hobart uses federal and state historic tax credits to complete their projects, but also relies on local incentives. The company is securing the former itself and working on the latter with the city in order to purchase the building by March 1.

Frantz-Hobart partner Jim Hobart, Clinton Area Chamber of Commerce President and CEO Nathan Sondgeroth and Interim City Administrator Jessica Kinser detailed the project and the local incentives during the Clinton City Council’s Committee of the Whole meeting Tuesday night with the end goal being a vote from council members on a letter committing to the project.    

“The local incentives really are the last piece of this puzzle that will give Frantz-Hobart the confidence they need to actually purchase and acquire the building under their option period,” Sondgeroth said.

Under the proposed development deal, the city would not be responsible for any cash up front for the project as it is not something that is feasible. The city will, however, provide a 95 percent tax increment finance rebate for the building, not to exceed $1.26 million over a decade. Frantz-Hobart would need to prove they have paid taxes in order for the taxes to be rebated. This rebate would leave the city with $19,000 in property taxes annually.  

Rather than an up-front cash incentive, the city will provide a “backstop” cash incentive to be used only if the development was not rented at 100 percent. The proposal presented Tuesday involved the city being responsible for up to six units for 10 years at $800 per month per unit. The maximum risk for the city in providing the backstop would be $576,000.

“This is something that is risk. Usually governments are risk adverse, but this is something looking at the financial obligation and the annual commitment it was minor in comparison to the benefit that can be seen from this project,” Kinser said.

The item would be budgeted annually in order to be prepared for the potential cost and the $19,000 in property taxes could be allotted to the backstop.  

Council members unanimously agreed to forward the letter of commitment to the project to their next regularly scheduled council meeting. If the letter of commitment receives final approval from the council, it would kick start city staff to complete a bundle of other behind-the-scenes work, Kinser explained.

“If this moves forward to the next council meeting basically with the resolution directing the mayor to sign this letter of commitment, signing the letter of commitment is not just making things happen. There are still a number of steps, timely steps, that would need to occur,” Kinser said.

The city would need to amend the central business district urban renewal plan to include the project and other potential improvements. That change would entail a public hearing, consultation with the school and county, review by the planning commission, and final recommendation from the council.  They also would amend the current TIF ordinance so it is reduced to just Hy-Vee parcels. A new TIF district would then be created that would include only the Wilson Building. Only after these steps would a development agreement be finalized.

1
Text Only
Clinton
  • photo-55.JPG UPDATE: 17-year-old fell, airlifted at Eagle Point Park (with VIDEO)

    A 17-year-old male was airlifted to Iowa City Monday afternoon after he fell approximately 80 feet from the bluff at Eagle Point Park. The male was not identified by authorities.

    July 28, 2014 1 Photo

  • Interest in Ernst rises as his game does, too

    Brady Ernst is having a summer to remember.
    The rising River King senior is spending the summer playing for the Iowa Barnstormers traveling basketball team. This weekend they're playing in the Fab48 tournament in Las Vegas.

    July 26, 2014

  • PHOTOS: Clinton Junior Baseball 2014 Tournament Winners

    Clinton Junior Baseball 2014 Tournament Winners - Majors, Minors, Pee Wee

    July 25, 2014

  • JUST IN: Man shot in downtown Clinton

    A 32-year-old man was shot in downtown Clinton early today.

    July 25, 2014

  • YWCA offers lifeguard training

    CLINTON — The YWCA will offer lifeguard training in August.The course will be held from Aug. 4 to 10 at the YWCA. This 30-hour class will meet from 5 to 9 p.m. for four weeknights and from 1 to 5 p.m. Saturday. A possibility of adding a class from 1

    July 25, 2014

  • Concurrent terms ordered in burglary case

    CLINTON — A Clinton man will serve four concurrent prison terms for his role in a string of 2012 burglaries.Assistant Clinton County Attorney Amanda Myers on Thursday requested the court to order Cory Mitchell, 38, to serve as much as 10 years in pri

    July 25, 2014

  • Whitecaps take away Clinton offense CLINTON — The Clinton LumberKings (13-19, 43-57) mustered only five hits as the visiting West Michigan Whitecaps (20-12, 61-41) shut down the hometown club at Ashford University Field.Whitecaps’ starter Jonathon Crawford (6-2) allowed only four men t

    July 25, 2014

  • 7-25-14 1B-Photo, Clinton track Clinton king of Brady DAVENPORT — It might not have been the blue oval, but Clinton track can place its mark at the top of the hill.The quartet of Barrion Collins, Marquis Robinson, Quavon Jones and Deshond Robinson won the high school boys division of the Battle Up Brady

    July 25, 2014 1 Photo

  • Habitat for Humanity hosts fundraiser

    CLINTON — Habitat for Humanity will host a fundraiser in Thomson, Illinois.The Clinton County group will showcase Laid Back Luau from 5 to 8 p.m. Friday, Aug. 8, at Heirloom Cafe in Thomson. The event will feature games, prizes, music train rides for

    July 25, 2014

  • 7-24-14 1B-Photo, Choice 2 Cinderella run ends DUBUQUE — The playoff run was fun while it lasted. Dubuque Hempstead, the No. 1-ranked baseball team in Class 4A entering Wednesday, ended Clinton’s chances at back-to-back appearances in the state tournament in Des Moines. The Mustangs knocked out t

    July 24, 2014 2 Photos

Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Facebook