Background/Discussion
Applicants
1. 20-URV-001: Chris Brokman (Advanced Machine): Indian Creek South Urban Revitalization Area (920 South 17th Street)
2. 20-URV-002: Loffredo Fresh Produce: South Pointe Urban Revitalization Area (4105 South 21st Street)
3. 20-URV-003: PHS Council Bluffs, Inc.: Valley View Urban Revitalization Area (16 Valley View Drive)
4. 20-URV-004: Immanuel Elderly Housing II, LLC: College Road Urban Revitalization Area (1681 College Road)
5. 20-URV-005: BJA Investments: Indian Creek South Urban Revitalization Area (1505 10th Avenue)
Background
Chapter 404 of the Iowa Code authorizes a City to designate an area as an urban revitalization area. Improvements to qualified real estate within designated areas may then be eligible to receive a total or partial exemption from property taxes for a specified number of years. The exemptions are intended to stimulate private investment by reducing the tax increase that would normally result from making improvements to real estate property.
Urban revitalization tax abatement incentives can apply to residential, commercial and industrial development. Both new construction on vacant or unimproved land and rehabilitation of existing structures are eligible for tax abatement. All eligible commercial and industrial real estate can receive a partial exemption from taxation or a full exemption on the actual value added by the improvements. The partial exemption is for a period of ten years and the full 100% exemption is for a period of three years. Multi-family new construction (12 or more units) is eligible for a 100% exemption for four years and multi-family rehabilitation (3 or more units) may be eligible for a 100% exemption for ten years.
Discussion
1. Chris Brokman, Advanced Machine
920 South 17th Street
Lots 1-12 and the vacated east-west alley between Lots 6 and 7, Block 5, Fleming and Davis Addition
Parcel No. 754435405003
In 2019, Advanced Machine completed a building expansion to add storage space and added additional parking for a total investment of $436,987.57. Mr. Brokman has requested partial tax exemption for a ten year period. A detailed builder’s cost breakdown/real estate improvement cost report is attached as a part of the application.
The Community Development Department has reviewed the request and finds the following:
a) The request is in conformance with the Indian Creek South Urban Revitalization Plan (expires 2025).
b) The request pertains to property improvements located within a designated urban revitalization area.
c) The request is for work completed in 2019 and all appropriate materials have been submitted within the timeframe required for abatement.
d) The request is consistent with Chapter 404 of the Iowa Code and applicable city ordinances.
e) The property is classified as industrial and is consistent with the eligibility criteria contained in the Indian Creek South Urban Revitalization Plan.
f) Certificate of completion has been issued by the Building Division.
2. Loffredo Fresh Produce
4105 South 21st Street
Lot 1 and the West 53.33 feet of Lot 2, South Pointe Subdivision
Parcel No. 744411377007
In June 2019, Loffredo Fresh Produce began construction on its 8,400 sqft facility in the South Pointe Industrial Park. Loffredo is a full-line produce and specialty foods distributor. Construction was completed in November 2019. The cumulative investment in the site was $2,199,000 with $2,139,000 invested in 2019. Loffredo has requested partial tax exemption for a ten year period. A detailed builder’s cost breakdown/real estate improvement cost report is attached as a part of the application.
The Community Development Department has reviewed the request and finds the following:
a) The request is in conformance with the South Pointe Urban Revitalization Plan (expires 2038).
b) The request pertains to property improvements located within a designated urban revitalization area.
c) The request is for work completed in 2019 and all appropriate materials have been submitted within the timeframe required for abatement.
d) The request is consistent with Chapter 404 of the Iowa Code and applicable city ordinances.
e) The property is classified as commercial and is consistent with the eligibility criteria contained in the South Pointe Urban Revitalization Plan.
f) Building permits have been issued and the project has received a temporary certificate of occupancy.
3. PHS Council Bluffs, Inc.
16 Valley View Drive
Lot 3, New Horizon Subdivision
Parcel No. 754328300001
In 2017, Presbyterian Homes Housing and Assisted Living, Inc. requested the establishment of a new urban revitalization area for their property located off Valley View Drive. The development consists of a multi-component project that will include independent living, assisted living, assisted living memory care, skilled care and a “Town Center” with supportive and amenity space for all residents. The unit mix includes 36 independent living apartments (three story building over a one-story parking structure), 24 assisted living units, 18 memory care units and 68 care center suites (72 beds) for a total of 146 units. Future phases may include additional independent living apartments and brownstone apartments.
A two story “Town Center” building will connect all of the different project components. It will have approximately 21,000 square feet with an entry lobby, dining areas, bistro, commercial kitchen, community room, salon, wellness and fitness rooms, library and media center, mailroom, administrative offices, conference rooms and a guest suite. Special site and landscaping considerations will be designed to include Porte Cocheres at the Town Center, large windows, outdoor pathways, a water feature and garden. Additionally, connectivity to the New Horizon Church will be featured with a driveway and sidewalk adding synergy for programming and a volunteer base.
The project is designed to provide a full continuum for all levels of care and housing. This will allow residents to stay within the campus and maintain social connections for a stronger connected community.
The entire project is expected to cost over $38 million. Once all components of the project are completed, the equivalent of 95 full time positions will be created. These positions will range from skilled nursing, administrative, nutrition/culinary, engineering/maintenance, housekeeping/laundry, activity coordinators, spiritual care, wellness, resident services and clinical care workers such as home health aides/CNAs.
Construction started in September 2018 and likely will not be completed until March 2020. They have requested a 100% exemption for four years, which is allowed because the project is classified as multi-family new construction. Their 2019 project costs total $6,972,018.61.
The Community Development Department has reviewed the request and finds the following:
a) The request is in conformance with the Valley View Urban Revitalization Plan (expires 2035).
b) The request pertains to property improvements located within a designated urban revitalization area.
c) The request is for work completed in 2019 and all appropriate materials have been submitted within the timeframe required for abatement.
d) The request is consistent with Chapter 404 of the Iowa Code and applicable city ordinances.
e) The property is classified as multi-residential and is consistent with the eligibility criteria contained in the Valley View Urban Revitalization Plan.
f) Building permits have been issued and the project appears to be consistent with all applicable city codes.
4. Immanuel Elderly Housing II, LLC
1681 College Road
Lot 1, New Horizon Subdivision Replat
Parcel No. 754328301001
In 2017, Immanuel Pathways requested the establishment of a new urban revitalization area for their property located along College Road across from Reiver Lane. Graceview Courtyard will consist of 56 low income independent living for adults over 55 years of age and will provide related programs for seniors to meet the physical, emotional, recreational, social and religious needs of aged persons. The project will create two new full-time equivalent positions. In 2019, the total investment was $6,185,153.09.
The project is expected to be completed in early 2020. They have requested a 100% exemption for four years, which is allowed because the project is classified as multi-family new construction.
The Community Development Department has reviewed the request and finds the following:
a) The request is in conformance with the College Road Urban Revitalization Plan (expires 2035).
b) The request pertains to property improvements located within a designated urban revitalization area.
c) The request is for work completed in 2019 and all appropriate materials have been submitted within the timeframe required for abatement.
d) The request is consistent with Chapter 404 of the Iowa Code and applicable city ordinances.
e) The property is classified as commercial and is consistent with the eligibility criteria contained in the College Road Urban Revitalization Plan.
f) Building permits have been issued and the project appears to be consistent with all applicable city codes.
5. BJA Investments
1505 10th Avenue
Lots 9-24, the adjacent east-west alley along Lots 9-16 and the south ½ of the vacated east-west alley along Lots 17-24, Block 10, Fleming and Davis Addition
Parcel No. 754435411006
In 2019, BJA Investments constructed at 4,800 sqft building with paved, fenced vehicle storage space. The building is used for storage and inspection of vehicles as well as office space for management personnel. The total investment in 2019 was $834,190. The business is requesting 100% tax exemption for three years.
The Community Development Department has reviewed the request and finds the following:
a) The request is in conformance with the Indian Creek South Urban Revitalization Plan (expires 2025).
b) The request pertains to property improvements located within a designated urban revitalization area.
c) The request is for work completed in 2019 and all appropriate materials have been submitted within the timeframe required for abatement.
d) The request is consistent with Chapter 404 of the Iowa Code and applicable city ordinances.
e) The property is classified as commercial and is consistent with the eligibility criteria contained in the Indian Creek South Urban Revitalization Plan.
f) Building permits have been issued and the project appears to be consistent with all applicable city codes.