South 15th St. housing project awarded state tax credit

by Marianne Gasaway

A market rate rental housing project planned in Clear Lake has been awarded a $195,600 Workforce Housing Tax Credit.

Awards totaling almost $10 million were announced by Iowa Economic Development Authority (IEDA) for 19 housing projects across the state.

IEDA’s Workforce Housing Tax Credit program provides tax benefits to provide housing in Iowa communities, focusing primarily on those projects using abandoned, empty or dilapidated properties.  For the fiscal year 2021 application round,  $10 million in credits were available for award under the WHTC program’s Small Cities Set Aside component.  IEDA received 84 applications requesting $34 million in tax credits.  Projects are scored competitively based on readiness, financing, need, and local support and participation.

In May 2018 the Clear Lake City Council gave its enthusiastic approval to the idea of accepting proposals for the sale and redevelopment of city-owned property at 100 S. 15th St.  The metal cold-storage building, which City Administrator Scott Flory called “an eyesore for a great

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many years,” was advertised  “as-is.”  The property included three 50-foot lots and one 40-foot lot located between Main Avenue and 2nd Avenue South; each lot is 120-feet deep.

City leaders stressed they were looking at the long-term impact a project on the site could make on the community, both in terms of enhancing the tax base and addressing a lack of housing opportunities in the city.

Echo Development Group, based in Cedar Falls, Iowa purchased the property for $1, with developers Brent Dahlstrom and Jim Sulentic planning to construct eight multi-family market rate rental apartments with an estimated new taxable value in excess of $1 million.   The City offered five-year tax-increment financing at 100 percent tax abatement.

The project, which is expected to break ground yet this summer, is comprised of two, four-unit buildings, according to City Building Official Mike Ritter.  The buildings are three stories in height with a two-stall garage on the main level.  Each unit will have three bedrooms.

Officials from the City of Clear Lake and North Iowa Corridor Economic Development Corp. assisted Echo Development in making application for WHTC funds.

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