Tax increment financing (TIF) made it on the agenda twice for Monday’s regular Marshalltown City Council meeting. TIFs are used to encourage growth through the city capturing property tax increases generated by new developments. That money is then used to finance projects within the TIF district.

The biggest TIF request, $7.2 million, is for Shops at Marshalltown LLC, the owner of the Marshalltown Mall.

Council members approved authorizing annual appropriation tax increment payments, pledging tax increment revenues and the development agreement with the new owner. However, the vote was not unanimous. Voting against the resolution were councilmen Mark Mitchell and Gary Thompson.

The TIF will last 20 years. Shops at Marshalltown, a subsidiary of Reserve Development, will receive a 90 percent rebate during the first three years, 70 percent during the fourth through eighth years, 60 percent in years nine through 13, 40 percent in years 14 through 17 and 20 percent during the final three years.

The agreement requires Reserve Development to maintain a minimum assessed value of $23 million. They also must have occupants in 70 percent of the commercial space within one year of project completion.

Construction work is ongoing within the interior, particularly in the area where JC Penney was located; on the roof of the structure; and in the parking lot. The project will bring new storefronts, sidewalk improvements and other building enhancements.

It is estimated the first new stores in the Marshalltown Mall will be open by March, and the entire project done in August 2026.

City Administrator Carol Webb told the council members the city has gone through the necessary steps to add the project to the Urban Renewal Plan.

“The project is now eligible for tax increment financing,” she said. “We’ve drafted a development agreement for council consideration.”

Mayor Joel Greer opened the microphone for public comment regarding the mall TIF, but no one had anything to say.

Reserve Development of Dallas purchased the mall at the end of January and established the Shops at Marshalltown to oversee the project and business. The business purchased the property for $8.4 million from Kohan Retail Investment Group of New York after the former owner failed to pay utility bills and the electricity was shut off in November 2023.

The other TIF request approved by council members was $1.6 million for TIG Distributing for the purposes of expansion at its Rex Ryden Road location. The TIF will last 10 years. During the first six, TIG will receive a 90 percent rebate and then 80 percent for the remaining duration. The project includes a $12 million 90,000-square-foot building expansion, $3 million in new equipment and machines and the creation of 50 new jobs.

The next step for the TIG TIF is the city staff will work on an Urban Renewal Plan amendment and a formal development agreement.

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Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com.