More than $18.5 million in grayfield and brownfield tax credits were awarded to 31 Iowa projects on Friday by the Iowa Economic Development Authority board. Seven of the projects are in the Corridor.
The state’s Redevelopment Tax Credit Program provides financial assistance for the purchase, remediation and redevelopment of brownfield and grayfield sites, according to information provided to the IEDA board. The state describes grayfield sites as those with abandoned public buildings and commercial or industrial properties that previously have been developed and have infrastructure in place but are outdated, vacant or underutilized. Brownfield sites include environmental contamination.
Corridor projects awarded tax credits include:
- DMOV, LLC applied for the Brownfield 24% tax credit. This $38,925,000 project is for redevelopment of a site that contains four vacant and abandoned industrial buildings in Cedar Rapids. The buildings will be razed and a four- and five-story, mixed-use building will be constructed, consisting of nearly 180,000 square feet, containing a mix of residential, commercial/office space, with associated parking and amenities.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $31,350,000 for a maximum tax credit of up to $1,00,000.
- 1277 8th Avenue, LLC applied for the Brownfield 24% tax credit. This $20,988,827 project is for redevelopment of a vacant former church site in Marion. The project involves the partial demolition of the former church addition, saving the historic sanctuary and bell tower for renovation into a new upscale restaurant and brewery, and construction of a new six-story multi family structure that will provide 71 new market rate apartments.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $18,836,041 for a maximum tax credit of up to $1,500,000 contingent upon submission of financing commitment letter(s) within three months of board approval date.
- 1st and 1st, LLC applied for the Grayfield 12% tax credit. This $18,449,129 project is for redevelopment of a site adjacent to I-380 that has remained vacant since the 2008 flood in Cedar Rapids. The project involves the construction of a five-story building of roughly 100,000 square feet, with 37,500 being commercial space and the remaining space being 63 market rate apartments.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $14,268,355 for a maximum tax credit of up to $1,000,000.
- LTRI, LLC applied for the Grayfield 12% tax credit. This $9.8 million project is for redevelopment of a mostly vacant site from which flood damaged buildings were removed in Cedar Rapids. Plans are to construct a four-story, mixed-use building consisting of 34 residential dwelling units, office/retail space, and shared parking areas.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $7,780,000 for a maximum tax credit of up to $900,000.
- Williams Synergy Group, LLC applied for the Grayfield 12% tax credit. This $8,176,176 project is for redevelopment of three vacant and derecho damaged warehouse buildings in Cedar Rapids. The buildings will be razed making space for an 16,000 Square foot OB/GYN medical office building.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $7,476,176 for a maximum tax credit of up to $850,000.
- Modern Home Builders, LLC applied for the Grayfield 12% tax credit. This $4,250,000 project is for redevelopment of a site that contains a vacant drive-through bank in Cedar Rapids. The building will be razed to make room for construction of four new triplexes with all modern amenities.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $4,100,000 for a maximum tax credit of up to $251,000.
- Butterfield Holdings, LLC applied for the Grayfield 12% tax credit. This $1,065,000 project is for redevelopment of a small commercial building in Cedar Rapids. The building will be razed and a new four-unit condominium townhome will be built.
Recommendation: Grayfield tax credit of up to 12% of qualifying investment of $880,805 for a maximum tax credit of up to $100,000.
