Greater Des Moines housing projects on tap for $7 million in state tax credits
KENT DARR Aug 27, 2015 | 8:00 pm
2 min read time
524 wordsAll Latest News, Economic Development, Real Estate and DevelopmentThe second round of applications for state tax incentives geared for housing projects has been completed, with nine projects in Des Moines and two in Johnston approved for a total of $7.2 million.
The Iowa Economic Development Authority vets applications and awards the tax credits, which have a statewide cap of $20 million per fiscal year.
Hubbell Realty Co. and the Neighborhood Development Corp., a nonprofit development partner of the city of Des Moines, each had three projects approved.
Hubbell will receive $1 million for its $18 million Verve Apartments in a development area east of the Des Moines River called the Bridge District, and a total of $2 million for its Cadence Apartments in Johnston. The project is being built in two phases, and each phase will be awarded $1 million. Hubbell plans a $26 million project on nearly 8 acres at 6300 Merle Hay Road that will have nearly 200 high-end apartments.
Neighborhood Development Corp. will receive $143,888 for the Mary Todd House eight-unit townhouse project at 2440 S.W. Ninth St.; $112,710 for the six-unit MacRae Terrace Apartments development at 2249 S.W. Ninth St.; and $394,059 for a three-building, 172-unit apartment project at Dunham Square in the city’s Two Rivers District that bounds Indianola Avenue near the confluence of the Des Moines and Raccoon rivers.
Hy-Vee Inc. and Knapp Properties Inc. will receive $1 million for the apartment component of a joint effort to develop 420 Court Ave., a former city-owned parking lot that also will be the location of a Hy-Vee grocery store. Plans call for 82 apartments on four floors above the grocery.
Nelson Construction & Development has been awarded $1 million for its Bici Flats apartments south of the Des Moines River at 1405 S.E. First St. The project calls for three buildings with a total of 154 apartment units.
Harbach Lofts LLC, a joint project of architect Davis Sanders and developer Kent Mauck, will receive $782,736 for an apartment project at a former furniture factory at 316 S.W. Fifth St.
Developer Jake Christiansen will receive $702,158 for a $6 million project to create 45 housing units at 400 S.E. Sixth St.
A renovation of apartments at 702 20th St. will receive $103,150.
The workforce housing program provides a refund of state sales, service or use taxes paid during construction, and a state investment tax credit up to a maximum of 10 percent of the investment directly related to construction of the project.
IEDA requires local government resolutions supporting the projects, along with a local match of $1,000 per housing unit.
For example, the Cadence project in Johnston has been approved for a five-year property tax rebate of 70 percent of the taxes based on improvements to properties, capped at $1.4 million for the infill projects, which is located in an area once dominated by blighted properties.
In Des Moines, the Harbach Lofts project includes the rehabilitation of two buildings that will receive an estimated $4.8 million in tax abatements on the value of improvements over 10 years. A property at 300 S.W. Fifth St. has been approved by IEDA for $300,000 in workforce housing tax credits.
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