It would be great to see that area developed after sitting vacant for so many years. It' s prime location:
A project proposed for Hieronymus Square, a near-downtown parcel at the southeast corner of Clinton and Burlington streets, carries the largest tax increment financing request the current Iowa City Council has ever considered.
That consideration comes Tuesday, when the council will discuss providing an $8 million tax increment financing package requested by the owners of the property at 314 S. Clinton St. and the developers they're partnering with.
Partners include the Hieronymus family, Ben Kinseth of Kinseth Hospitality, Kevin Digmann of Hodge Construction and Kevin Monson of Neumann Monson Architects.
The proposed nearly $41 million project includes two seven-story buildings joined in the middle by a two-story vestibule. The building to the north, planned for the corner of Clinton and Burlington streets, would include commercial space on the first floor, office space on the second and housing on the third through seventh floors, totaling 45 housing units.
The second building to the south is planned as a 91-room extended-stay hotel, called Element, which would be the first of its kind for the city, according to economic development coordinator Wendy Ford.
"The 91 rooms in the Element will all be equipped with kitchenettes and be especially designed to appeal to the extended-stay market," Ford said in a memo to the council.
The vestibule portion of the project is planned to include a lobby and entrances to each of the two other buildings on the first floor. On the second floor, plans call for an indoor pool, upper and lower terraces, an indoor fitness area and a rooftop with a two-level outdoor terrace.
Residential parking spaces would be housed in a basement-level garage accessed through the Court Street Transportation Center, and hotel parking would be provided in the transportation center through an agreement with the city and the hotel, similar to agreements with the Sheraton, Hotel Vetro and the new Hilton Garden Inn hotel.
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Ford on Monday said the city financing package will see $8 million disbursed through TIF rebates over the course of 15 years beginning in 2022, or for a shorter time if the valuation of the new project meets that amount sooner. The financing package includes a $600,000 TIF advance once the project is constructed.
"Because that TIF advance will be granted after they've completed the building, there's no risk to the city," Ford said. "The way the property taxes are billed, collected and rebated, there's a two-year lag there, and we have reached an agreement with the developers to provide that advance."
According to Ford's memo, the project's estimated $40.75 million cost includes $5 million for land acquisition, $28 million for construction, and the remaining costs include interest and other fees.
A cost analysis completed by the city in partnership with the National Development Council showed a financing gap for the northern building of $2.4 million plus $1 million in interest. For the hotel portion, the analysis showed a financing gap of $2.73 million plus $1.17 million in interest.
In return for the TIF rebates, the city requires 15 percent of the housing units to be affordable housing; in this case, seven affordable housing units for residents making 60 percent or below the area median income.
The development agreement the council will consider Tuesday includes a minimum requirement of two affordable housing units, and the remaining five will either be included on-site or developers will pay a fee-in-lieu to the tune of nearly $81,000 per affordable housing unit.
In July, the council's Economic Development Committee — chaired by council member Susan Mims and includes council member Rockne Cole and Mayor Jim Throgmorton — recommended approval of the financing.
"Overall, I think it's a terrific project," Throgmorton said after discussing the project with developers during that meeting. "I think it would be a tremendous asset to the downtown area, especially since that site has sat vacant for at least 30 years, maybe more.
"We have this ambition to improve the walkability and urban amenities of the downtown and the city as a whole," Throgmorton later added. "I think this is such a special intersection that it's important to get it right, and I think this proposal does."
Ford said when she started work for the city in 2006, developers had just approached the city with plans for a 15-story building.
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Hieronymus Square, a near-downtown parcel at the southeast corner of Clinton and Burlington streets, could be the site of Iowa City's first extended stay hotel. It is pictured here on Friday, Jan. 18, 2012. (Photo: Press-Citizen file photo)
"There was a $16 million TIF request for that project, but as it was moving forward a number of things happened: the economy tanked, property values went way up and there was the flood in 2008."
In 2014, the University of Iowa announced it would partner with the Hieronymus family, the Hodge Group and Mortenson Construction to construct its new Museum of Art on the parcel.
Last year, though, the university backed out of the partnership and later chose to construct the new museum on a small parking lot near the UI Main Library, between Gibson Square park and the railroad tracks.
"This is the third iteration for development of this site that I've known in my 11 years here," Ford said.
If the development agreement is approved, the project would sit east across Clinton Street from UI's Voxman Music Building and north of the new Hilton Garden Inn hotel.
http://www.press-citizen.com/story/...package-hieronymus-square-proposal/678174001/
A project proposed for Hieronymus Square, a near-downtown parcel at the southeast corner of Clinton and Burlington streets, carries the largest tax increment financing request the current Iowa City Council has ever considered.
That consideration comes Tuesday, when the council will discuss providing an $8 million tax increment financing package requested by the owners of the property at 314 S. Clinton St. and the developers they're partnering with.
Partners include the Hieronymus family, Ben Kinseth of Kinseth Hospitality, Kevin Digmann of Hodge Construction and Kevin Monson of Neumann Monson Architects.
The proposed nearly $41 million project includes two seven-story buildings joined in the middle by a two-story vestibule. The building to the north, planned for the corner of Clinton and Burlington streets, would include commercial space on the first floor, office space on the second and housing on the third through seventh floors, totaling 45 housing units.
The second building to the south is planned as a 91-room extended-stay hotel, called Element, which would be the first of its kind for the city, according to economic development coordinator Wendy Ford.
"The 91 rooms in the Element will all be equipped with kitchenettes and be especially designed to appeal to the extended-stay market," Ford said in a memo to the council.
The vestibule portion of the project is planned to include a lobby and entrances to each of the two other buildings on the first floor. On the second floor, plans call for an indoor pool, upper and lower terraces, an indoor fitness area and a rooftop with a two-level outdoor terrace.
Residential parking spaces would be housed in a basement-level garage accessed through the Court Street Transportation Center, and hotel parking would be provided in the transportation center through an agreement with the city and the hotel, similar to agreements with the Sheraton, Hotel Vetro and the new Hilton Garden Inn hotel.
ADVERTISING
Ford on Monday said the city financing package will see $8 million disbursed through TIF rebates over the course of 15 years beginning in 2022, or for a shorter time if the valuation of the new project meets that amount sooner. The financing package includes a $600,000 TIF advance once the project is constructed.
"Because that TIF advance will be granted after they've completed the building, there's no risk to the city," Ford said. "The way the property taxes are billed, collected and rebated, there's a two-year lag there, and we have reached an agreement with the developers to provide that advance."
According to Ford's memo, the project's estimated $40.75 million cost includes $5 million for land acquisition, $28 million for construction, and the remaining costs include interest and other fees.
A cost analysis completed by the city in partnership with the National Development Council showed a financing gap for the northern building of $2.4 million plus $1 million in interest. For the hotel portion, the analysis showed a financing gap of $2.73 million plus $1.17 million in interest.
In return for the TIF rebates, the city requires 15 percent of the housing units to be affordable housing; in this case, seven affordable housing units for residents making 60 percent or below the area median income.
The development agreement the council will consider Tuesday includes a minimum requirement of two affordable housing units, and the remaining five will either be included on-site or developers will pay a fee-in-lieu to the tune of nearly $81,000 per affordable housing unit.
In July, the council's Economic Development Committee — chaired by council member Susan Mims and includes council member Rockne Cole and Mayor Jim Throgmorton — recommended approval of the financing.
"Overall, I think it's a terrific project," Throgmorton said after discussing the project with developers during that meeting. "I think it would be a tremendous asset to the downtown area, especially since that site has sat vacant for at least 30 years, maybe more.
"We have this ambition to improve the walkability and urban amenities of the downtown and the city as a whole," Throgmorton later added. "I think this is such a special intersection that it's important to get it right, and I think this proposal does."
Ford said when she started work for the city in 2006, developers had just approached the city with plans for a 15-story building.
Hieronymus Square, a near-downtown parcel at the southeast corner of Clinton and Burlington streets, could be the site of Iowa City's first extended stay hotel. It is pictured here on Friday, Jan. 18, 2012. (Photo: Press-Citizen file photo)
"There was a $16 million TIF request for that project, but as it was moving forward a number of things happened: the economy tanked, property values went way up and there was the flood in 2008."
In 2014, the University of Iowa announced it would partner with the Hieronymus family, the Hodge Group and Mortenson Construction to construct its new Museum of Art on the parcel.
Last year, though, the university backed out of the partnership and later chose to construct the new museum on a small parking lot near the UI Main Library, between Gibson Square park and the railroad tracks.
"This is the third iteration for development of this site that I've known in my 11 years here," Ford said.
If the development agreement is approved, the project would sit east across Clinton Street from UI's Voxman Music Building and north of the new Hilton Garden Inn hotel.
http://www.press-citizen.com/story/...package-hieronymus-square-proposal/678174001/
