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City council approves several downtown development projects

T-R PHOTO BY MIKE DONAHEY Construction workers prepare to unload materials Monday inside the walls of a $3.6-million dollar grocery store and restaurant project underway in the 100 block of North Center Street. City councilors approved a development agreement with project owner Jose Angel Regalado at Monday’s city council meeting.

A much anticipated but delayed 50-unit housing complex to be constructed near the intersection of South First Avenue and State Street received a much-needed boost from the Marshalltown City Council at their regular meeting Monday night.

Councilors voted 6-1 to approve a resolution endorsing a $75,000 Community Catalyst Building Remediation Grant (CCBRG) application for project developer Landover Corp. of Lake Barrington, Ill.

The funds will help construct the project with nearly 75 percent of those units being two and three bedroom residences.

“People living in the downtown area always contribute in a positive manner to the economic vitality of the area that all municipalities strive for. And of course, this housing is greatly needed in the community,” Landover officials said in the application.

The building will be constructed according to Iowa Finance Authority guidelines.

The estimated cost of the project which includes parking is $9.3 million.

Other key sources of funds and their status includes:

• State/Federal – $7,037,779 – Secured

• City Incentives – $330,000 – Applied for

• Private Equity Investment $179,761 – Secured

• Permanent Loan $1,200,000 – Applied for

• Region VI Trust Fund $100,000 – Secured

Landover Corp. agreed to pay the city $10,000 for 20 E. State St. and 12 E. State St. earlier this year.

The project completion date is May 29, 2021.

A October 2019 construction start date was initially proposed on the project but has been delayed due to soil remediation requirements mandated by the Iowa Department of Natural Resources.

Landover’s project was one of 12 in Iowa that is receiving federal housing tax credits to advance affordable housing, according to the Iowa Housing Finance Authority.

For more information, contact Landover Corp. at 847-550-8500, orlandovercorp@comcast.net, or visit Landovercorp.com.

IN OTHER BUSINESS:

• Approved 6-1 a resolution authorizing a development agreement with Dani and Garrett Goodman of Marshalltown to construct a new restaurant downtown. The development agreement includes $175,000 in city tax-increment financing. The city previously approved a state-funded $50,000 Catalyst Building Grant application. The application is under review by the state now.

During the public hearing no written or oral comments made against or for the project.

The Goodman’s Flying Elbow Restaurant at the intersection of Center Street and State Street was severely damaged in the 2018 tornado resulting in demolition of structure.

• Approved 6-1 a resolution authorizing the development agreement with Jose Angel Regalado of Marshalltown for a $250,000 Catalyst Building Grant (CBG) and $50,000 New Construction Incentive (NCI). The CBG is funded by the state. NCI is funded by the city. Programs helping fund new grocery stores and restaurants are under construction.

• Approved 6-1 a resolution authorizing the development agreement with McGregor’s Furniture and Mattress for a $75,000 Catalyst Building Grant. The program is helping businesses rebuild historic storefronts after the 2018 tornado.

• Voted unanimously to reduce the speed on South 12th Street between Westwood Drive and Prairie Lane to 35 miles per hour. The reduction goes into effect upon publication in the Times-Republican legal notice section.

• City Clerk Shari Coughenour urged public attendance at a 5 p.m. Jan. 30 Census Partnership Meeting at the Marshalltown Public Library. The purpose of the meeting is to explain why the 2020 Census is important and attract more census takers. Coughenour and Marshall County Board of Supervisors Executive Assistant Lisa Gassman are co-directing publicity and other efforts.

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Contact Mike Donahey at 641-753-6611 or mdonahey@timesrepublican.com

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