The Jefferson city council at its Jan. 24 meeting heard details of a redevelopment agreement for the Kendall Building at 111 E. Lincoln Way. The agreement is in the draft stage and will be complete in time for a public hearing at the council’s Feb. 14 meeting.
The agreement will be between the city of Jefferson, which purchased the building two years ago to prevent its possible collapse, and Ray and Rosie Tucker. The Tuckers plan to have retail space on the ground floor and to live in a second floor apartment.
Total cost of rehabilitating the building is $274,500.
City attorney Bob Schwarzkopf explained the development agreement. The stated sale price is $45,000. The Tuckers will sign a note for that amount, forgivable over 10 years, at $4,500 per year. The city will lend the Tuckers up to $105,000 to finance improvements still needed. That will be matched by a $74,400 from a Main Street Challenge grant through the Iowa Economic Development Authority. Region XII Council of Governments will put up a $32,000 second mortgage on the building. Finally, the Tuckers are putting $60,000 of their own money into the project.
The city will be first position on the $45,000 sale price, Region XII will have a second lien, and the city will be in third position on the $105,000 loan.
City building and zoning officer Nick Sorensen will handle the disbursement of funds and monitor payments and use of funds.
In other business, the council held a public hearing on a loan agreement for $360,000 for essential corporate purposes to cover the remaining $300,000 owed to the Iowa Department of Transportation for the Highway 4 overpass, $51,000 for engineering on a storm water project, and $9,000 in financing costs. With no public comment except a question from the media about interest rates, the public hearing was closed and the council approved the required resolution to move forward.
The interest rate on the loan will not be known until Piper Jaffrey provides a loan proposal, but it is expected to be 3.5 or 4 percent.
The council set a date of Feb. 14 for a public hearing on a $640,000 loan for general corporate purposes. The amount includes $290,000 for the match to the Community Development Block Grant that is funding downtown façade restoration, $334,000 for downtown building acquisition and renovation, and $60,000 for financing expense.
Both loans will be paid through tax increment financing.
The council heard a brief report of discussion at the street/water/sewer committee of quiet zones. The committee has learned that the cost of wayside horns is $85,000 per crossing, much more than originally estimated. Also, Landus Coop has asked to use the city’s storm water system to dispose of water coming from a reclamation project. Discussion of that is in early stages, with concern about contamination to the Raccoon River.
The council discussed updating the comprehensive plan. Region XII proposed an update two years ago. City officials, members of Grow Greene County and Greene County Development Corporation met recently with Zack Mannheimer of the Iowa Business Growth Company and others to discuss a comprehensive plan that would include “creative placemaking.” According to council member Harry Ahrenholtz, a plan by Mannheimer could create excitement for younger residents. The city council will discuss a plan further as part of its budget process.
The council set the Feb. 28 meeting as the time for a public hearing on the FY18 budget.
