West Des Moines offering incentives for commercial properties in select areas
The city of West Des Moines is offering new incentives for businesses debating whether to build new commercial structures or redevelop existing. Separate programs are targeted to Historic West Des Moines and other locations scattered across town. The emphasis is on commercial projects.
“All of the programs are directed toward trying to spur redevelopment and new development within certain areas of the community,” said Clyde Evans, the city’s director of community and economic development.
A tax increment finance program applies to nearly a dozen areas of town. Evans pointed out that the rebate is on the TIF rate only and not the portion of property taxes that go toward the bonded debt of other taxing districts in the city.
To date, the program has two applications, one for R&R Realty’s Westfield office development on Jordan Creek Parkway and the other for a new construction that will house Renewal by Andersen on Railroad Avenue.
Meanwhile, the city is determining the best way to finance two programs that are geared for improvements in Historic West Des Moines, an area that is bounded roughly by 1st Street on the east, Railroad Avenue on the south and follows the arc of Grand Avenue. Commercial properties along Grand are not included in the district. View a map of the area here.
Under what is called the Regulatory Compliance Program, the city would reimburse businesses for up to $75,000 of the costs of improvements designed to meet life and safety issues. An expense of at least $150,000 would be needed to qualify.
Another program, called the Property Improvement Fund, provides a maximum $75,000 reimbursement for businesses that enter a minimum assessment agreement on the property valuation that would result from improvements that include roof replacements and facade improvements. The payment essentially is a loan that would be paid back from property tax proceeds over a determined period of time.
West Des Moines sent notice today that it is taking applications for six openings on a nine-member Due Diligence Committee that would review funding applications under the two Historic West Des Moines programs.
The committee’s recommendations will be sent to the city’s finance and administration subcommittee and ultimately to the West Des Moines City Council for approval.
Three members of the committee will be recommended by the West Des Moines Chamber of Commerce. The other six will be comprised of three citizens at large and three residents or property owners from the Historic West Des Moines area.
Applications must be submitted by Jan. 3. Click here to apply.
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