The state has suspended a nearly million-dollar historic tax credit previously awarded to Andrew Wold for a downtown Davenport apartment building, the Roosevelt.
The Iowa Economic Development Authority cited pending legal action that it says is likely to impact Wold’s finances and ability to finish the project.
Wold owns the site of 324 Main St., where a six-story building partially collapsed May 28, killing three people and displacing dozens of others.
Many are seeking money from Wold, including plaintiffs in several lawsuits related to the collapse. A masonry company is claiming Wold owes them close to $100,000 for work done. The city has taken actions against him in court, and staff have said the city intends to seek reimbursement from Wold for the cost of tearing down the remnants of The Davenport.
Citing the unresolved legal actions against Wold, the Iowa Economic Development Authority issued a notice of default, telling Wold that his nearly $900,000 in pledged historic tax credits for rehabilitating the apartment building at 301 W. 6th St. would be put on hold until the litigation is resolved.
“In view of the pending legal actions and the likely adverse effect they will have on your financial condition, properties, business, or operations, IEDA has determined that you cannot, truthfully and in good faith, make the representations required to receive a tax credit certificate,” the letter to Wold stated.
Wold did not respond to a reporter’s requests for comment.
The state agency awards tax credits to developers who “sensitively rehabilitate historic buildings to offer them new life,” through the Historic Preservation Tax Credit Program according to the IEDA’s website.
Developers must apply and buildings and projects must meet certain criteria to qualify for the program. The building must be deemed “historically significant,” such as being listed on the National Register of Historic Places. And the renovations must be “substantial.”
The state income tax credit amounts to up to a quarter of qualifying rehabilitation expenses. Wold’s maximum tax credit for the Roosevelt was $891,506 under the program, according to an IEDA spokesperson.
The Roosevelt is a 32-unit apartment building Wold bought for $1.16 million in 2020. The four-story building, built in 1907, held the Salvation Army until 2018, when the nonprofit sold to the Foundry Apartments, LLC.
In informing Wold he was barred from receiving a tax credit, IEDA cited provisions in a contract that require a developer be in compliance with federal, state, and local laws and must not have litigation that would adversely change the developer’s financial condition.
It also requires the developer to notify the IEDA within 30 days of any changed circumstances that would impact the completion of a project, including any lawsuits, bankruptcy proceedings, or other legal actions brought against the developer.
“Pending resolution of the legal matters currently filed against you and any civil or criminal legal actions that may be filed in the future related to the building collapse, you are deemed in default under the terms of the Contract,” the letter stated.
Status of criminal investigation
al investigation
The Iowa Division of Criminal Investigation began investigating within a few days of The Davenport’s collapse, lead criminal investigator Ryan Kedley has said.
The investigation is ongoing, Kedley said, and DCI is working with the Davenport fire and police departments as well as the Scott County Attorney’s Office in reviewing and assessing information relevant to the investigation.
Wold awarded tax credits through separate program last year
Wold was awarded a maximum of $513,200 in tax credits through a separate IEDA housing program for the Roosevelt building, IEDA spokesperson Kanan Kappelman wrote in an email.
The agreement closed in August 2022.
Wold also applied in 2022 for a state workforce housing tax credit for 324 Main St., the building that collapsed, but the IEDA declined to grant the award.
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The Iowa Economic Development Authority cited pending legal action that it says is likely to impact Wold’s finances and ability to finish the project.
Wold owns the site of 324 Main St., where a six-story building partially collapsed May 28, killing three people and displacing dozens of others.
Many are seeking money from Wold, including plaintiffs in several lawsuits related to the collapse. A masonry company is claiming Wold owes them close to $100,000 for work done. The city has taken actions against him in court, and staff have said the city intends to seek reimbursement from Wold for the cost of tearing down the remnants of The Davenport.
Citing the unresolved legal actions against Wold, the Iowa Economic Development Authority issued a notice of default, telling Wold that his nearly $900,000 in pledged historic tax credits for rehabilitating the apartment building at 301 W. 6th St. would be put on hold until the litigation is resolved.
“In view of the pending legal actions and the likely adverse effect they will have on your financial condition, properties, business, or operations, IEDA has determined that you cannot, truthfully and in good faith, make the representations required to receive a tax credit certificate,” the letter to Wold stated.
Wold did not respond to a reporter’s requests for comment.
The state agency awards tax credits to developers who “sensitively rehabilitate historic buildings to offer them new life,” through the Historic Preservation Tax Credit Program according to the IEDA’s website.
Developers must apply and buildings and projects must meet certain criteria to qualify for the program. The building must be deemed “historically significant,” such as being listed on the National Register of Historic Places. And the renovations must be “substantial.”
The state income tax credit amounts to up to a quarter of qualifying rehabilitation expenses. Wold’s maximum tax credit for the Roosevelt was $891,506 under the program, according to an IEDA spokesperson.
The Roosevelt is a 32-unit apartment building Wold bought for $1.16 million in 2020. The four-story building, built in 1907, held the Salvation Army until 2018, when the nonprofit sold to the Foundry Apartments, LLC.
In informing Wold he was barred from receiving a tax credit, IEDA cited provisions in a contract that require a developer be in compliance with federal, state, and local laws and must not have litigation that would adversely change the developer’s financial condition.
It also requires the developer to notify the IEDA within 30 days of any changed circumstances that would impact the completion of a project, including any lawsuits, bankruptcy proceedings, or other legal actions brought against the developer.
“Pending resolution of the legal matters currently filed against you and any civil or criminal legal actions that may be filed in the future related to the building collapse, you are deemed in default under the terms of the Contract,” the letter stated.
Status of criminal investigation
al investigation
The Iowa Division of Criminal Investigation began investigating within a few days of The Davenport’s collapse, lead criminal investigator Ryan Kedley has said.
The investigation is ongoing, Kedley said, and DCI is working with the Davenport fire and police departments as well as the Scott County Attorney’s Office in reviewing and assessing information relevant to the investigation.
Wold awarded tax credits through separate program last year
Wold was awarded a maximum of $513,200 in tax credits through a separate IEDA housing program for the Roosevelt building, IEDA spokesperson Kanan Kappelman wrote in an email.
The agreement closed in August 2022.
Wold also applied in 2022 for a state workforce housing tax credit for 324 Main St., the building that collapsed, but the IEDA declined to grant the award.
State suspends historic tax credit for Wold property in Davenport
The state has suspended an historic tax credit awarded to Andrew Wold for a downtown apartment building, the Roosevelt.
