The Keokuk City Council gave the green light to a proposed senior housing complex in the downtown district.
The go-ahead comes in the form of a financial incentive package in which the property taxes on the $9-million dollar project will be waived for up to 12 years. The tax abatement, which was approved unanimously, could save up to $512,000 for the Miller-Valentine Group out of Cincinnati, Ohio.
Alderwoman Susan Dunek expressed concerns during previous meetings about offering such a large incentive when downtown projects are normally eligible for much less. She said those concerns waned as the proposal took shape.
"We clarified how it was we were going to evaluate that incentive," said Dunek.
"It's for a fixed duration of time. If it goes to 12 years, that's as long as it will go, and as far as the dollar amount, that's fixed also. So if we get to that dollar amount sooner rather than later, then (the complex) goes on the tax rolls."
Dunek said her support also grew when the development firm said it would be willing to work with the city on some design concerns raised by Main Street Keokuk.
Pete Schweigeraht has represented the firm in its discussions with the city. He said the incentive will improve the chances of his group securing millions in funding from the Iowa Finance Authority.
"This will allow us to receive 18 of 21 local incentive points, which should give our application the ability to be very competitive," said Schweigeraht. "You never can tell how it will all pan out, but we feel very confident in our ability to secure funding."
Schweigeraht expects the Keokuk project, which is contingent on state funding, to be up against as many as 60 other housing projects throughout Iowa. He said the Iowa Finance Authority will likely have enough money available to fund about a quarter of them.
Schweigeraht said there is a definite need for the 45-unit complex, which would be built between 9th and 10th Streets along Main Street.
"There is limited senior housing and affordable housing, as a whole, in the community," said Schweigeraht. "The senior housing that is in the community has some limitations and constraints with it. This will be a fully amenitized product that is going to be attractive not only to seniors who are renting but also seniors in home ownership."
The Miller-Valentine Group expects to find out in March or April whether it receives the state money. If it does, construction could get underway in the fall of 2015 and be completed one year later.
