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Historic tax credits sought for Hubbell, Register building projects

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The renovations of some historic buildings in downtown Des Moines have ground to a halt because of delays in guaranteeing state tax credits for the projects, but that won’t stop two other developers from seeking more than $7 million from the program.


The Des Moines City Council will be asked today to approve nearly $900,000 in tax abatements as an indication of its support for Hubbell Realty Co.’s conversion of the Lovejoy building downtown into 26 market-rate lofts.


Hubbell plans to seek $1.1 million in state historic tax credits for a $6.2 million project called Station 121 at 121 12th St., the site of the former Lovejoy Building. Hubbell also would receive an estimated $865,096 in tax abatements over a 10-year period, according to a report to the City Council.


The project will retain its historical character by using the large windows, exposed brick, original trusses and other features whenever possible. Amenities will likely include a two-story community room, a fitness center and a pub.


The report to the City Council also said the developers of R&T Lofts at the site of the former Register and Tribune Building at Seventh and Locust streets will seek $6.3 million in tax credits after previously receiving an allocation of $1.8 million for the $35 million project.


After the historic tax credit program was changed in 2014, developers and bankers encountered unanticipated auditing procedures that have resulted in months-long delays in getting allocations authorized and have driven some tax credit investors from the Iowa market.


State officials continue to meet with developers, bankers and community officials in an effort to resolve remaining controversies surrounding the program. While those discussions continue, some developers say they are spending $1 million a year in interest costs on loans that they hoped to repay with the tax credits, and other renovations have ground to a stop.

 

 

 

FROM THE RECORD ARCHIVES:

Projects at risk due to historic tax credit change

 
Sept. 16, 2015 – Developers involved in the renovation of historic buildings say they are losing tens of thousands of dollars a month as bankers and state officials try to work out a controversy surrounding Iowa’s historic tax credit program. Read more
 

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