Jefferson mayor Craig Berry opened the April 22 city council meeting by reading a mayoral proclamation honoring Jefferson Matters as the winner of a Great America Main Street Award (GAMSA). The proclamation noted that the award places Jefferson “among the best of the best” and notes “countless volunteers, community leaders, business owners, and residents who have worked together to build a vibrant, welcoming and thriving downtown Jefferson.” The award confirms “shared values of progress, heritage, and community spirit,” the proclamation states.
The proclamation names Friday, May 9 , as GAMSA Celebration Day in Jefferson.
He presented a plaque to Jefferson Matters. Board president Amy Milligan accepted the plaque on behalf of the group.
The council held a public hearing on the FY 2025-26 budget as required by law. No residents spoke. City finance officer Sarah Morlan recapped information previously presented. The total levy rate is unchanged at $14.88 (per $1,000 in taxable valuation). The council approved the budget.
The council also held a public hearing on the plans and specifications for the airport fuel farm project. No comments were heard. The council then approved a bid from Evora Energy, LLC of Grimes in the amount of $839,412 to construct the project. The engineer’s estimate was $916,650.
Completion of the project is contingent upon receiving anticipated federal funding for it.
The council approved a plat of survey dividing the south side of the 200 block of W. Harrison St (former middle school and gym) into two plats, allowing use of the school building for a residential development to proceed.
Local developer Chris Deal updated the council on the status of the project to repurpose the 1921 Jefferson High School building by NGA Ventures (Nate Adams) to create up to 25 apartments. Deal has worked with Adams since the project was first announced in 2021.
Deal explained the project was delayed when the State Historic Preservation Office reversed its decision that the 1950s gymnasium could be razed. That changed the project, eliminating the potential for a green space on the south side of the apartment building. A new design was approved in August 2024, and the group has moved forward with final design and pricing, updating financing and tax credits, and arranging for the needed property transfer.
NVA Ventures is now asking the city for a $300,000 loan forgivable over 10 years and a 10-year tax abatement. Deal now asks that the area be put into a new Tax Increment Financing (TIF) district to fund the loan. It was previously approved with payments to come from the city’s general fund.
A request for a 10-year tax abatement on the property is new. Deal said the property now is not on the tax roll at all, but because it will be owned by an LLC, a portion of the value will be taxed. After the abatement expires, the full value would be taxed, generating revenue for the city.
“We’re very optimistic and excited about the possibility of the project,” Deal said.
To justify the request for the loan and the tax abatement, Deal said that as a percentage of the total project, that amount is less than what the city provided to three other projects – the Forge, City View Apartments (on S. Wilson Ave), and The Public House (former Ace Hardware store). The incentives for each of those projects amounted to 10 percent of total cost. NGA Ventures is asking for 3.5 percent of the total project cost.
Deal was grilled about the Forge, as it was never used for the intended purpose. “That project didn’t turn out like we hoped it would, but we’re still not done yet… We’re still optimistic about what that building can do,” he said.
Council member Chad Sloan said he didn’t object to the loan forgiveness but he’s against the tax abatement. If property taxes are abated for NVA Ventures, every homeowner who makes improvements to his or her property should also have taxes abated, he said.
Deal answered that the project has “collective importance” to the community. Older residents may be drawn to live there, putting their homes on the market for younger families. He said several persons who have left Jefferson have told him they’d consider coming back to live in the building. “This project fits uniquely into all the things the community is doing,” Deal said.
All council members weighed in. “The school can’t stay there forever and be broken windows and raccoons. If it can be something besides an empty lot, I approve,” he said.
Harry Ahrenholtz called the project the most economical use for the property. Pat Zmolek and Matt Wetrich agreed.
The council approved a motion endorsing the concept of a $300,000 forgivable loan and a 10-year tax abatement, and directed city administrator Scott Peterson and city attorney David Morain to start the process.
Building/zoning officer Chad Stevens reported on a rural housing readiness assessment recently completed. The project, done with assistance from Iowa State University Extension and the Iowa Economic Development Authority, was to evaluate the availability, affordability and quality of the housing stock in the city.
Results of a survey sent out as part of the assessment showed median monthly rent in Jefferson at $745, compared to a state median of $949. The median home value in Jefferson is $126,900, compared to $195,000 statewide.
More telling is that 24 percent of renters in Jefferson pay 50 percent or more of their income on housing, and that 29 percent of households in Jefferson include at least one person aged 65 or older.
Stevens said the survey showed a growing need for senior-focused housing; strong community support for housing rehabilitation; and interest in requiring inspections of rental housing.
The action plan includes five focus areas, with committees designated to work on each one. Those focus areas are to launch a non-profit housing corporation to accept donations; focus on developing in-fill lots; rehabilitation of vacant properties; exploring rental inspections; and exploring the development of senior housing.
The council approved the third and final reading of changes to the city’s tree ordinance, focusing on the species that can be planted in the right-of-way (usually the area between the sidewalk and the street) and required spacing. The council approved a $47,500 grant to Art on the Fly LLC for façade improvements at 116 N. Wilson Ave, formerly John’s Appliance. The façade will match 114 N. Wilson, which was, until recently, Art on the Fly. Bolton & Menk Engineering is renting both halves of the building.
