Item pulled from council’s consent agenda raises questions on facade grant eligibility
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Councilor Gary Thompson pulled an item from the consent agenda at last Monday night's Marshalltown city council meeting in an attempt to clarify which buildings are eligible for code building upgrade grant funding.
The grant in question is in the amount of $30,000 for St. Mary Catholic Church at 11 W. Linn St. to install an Americans with Disability Act (ADA) compliant entrance and basement bathroom, and Thompson said that while he wasn't opposed to the grant, he hoped to gain clarification on whether only for-profit, taxpaying entities would qualify, noting that a grant had been given to the Elks Lodge the year before.
"I apologize for not catching it then because there are some people that believe these grants are for taxpaying businesses and that these grants would be recouped in higher assessments, and therefore, they were the only ones that qualify," he said.
Thompson noted that there are some gray areas with the assessor's office labeling the church and the Elks Lodge as commercial buildings, and he also cited the example of the Binford House, which is considered a residential building by the assessor's website.
He added that he would like to have further conversations about how the grants should be used with public input before Marshalltown Central Business District (MCBD), and MCBD Director Danielle Lekin came to the microphone and told Thompson she was unsure of which definition of commercial building to use as she was applying for the grant. It is not clearly outlined in city code.
Mayor Mike Ladehoff agreed that the intent of the program should be clarified at some point in the future, and public commenter Mark Eaton told the council that due to the fact that the facade grants utilize Tax Increment Financing (TIF), which affects the city's general fund, there should be no grants given due to the current annual budget deficit.
"We are working hard to stop giving taxpayer money to nonprofits. You're basically forcing the taxpayer to give money to a nonprofit because they don't pay property taxes," Eaton said. "And I think there should be enough investors in the community to support the nonprofits."
Eaton said the city has stopped contributing to the Marshalltown Arts and Civic Center (MACC) and only gives money to the Arts + Culture Alliance (ACA) and the Marshalltown Area Chamber of Commerce because they are contracted to perform specific work.
City Attorney Steve Leidinger commented that whether a property qualifies as commercial or not would be a legal question, and he would be happy to weigh in "in a more private setting" without waiving confidentiality. Thompson floated the idea of delaying the vote by a month until an opinion could be returned, but Lekin replied that work could not start until the grant is approved.
Before the council voted, Thompson pointed out that the house he rents is within the Central Business District, so under the current rules, his landlord could apply for a CDBG grant to fix the property.
"I think you ought to fix your van first, actually," Ladehoff quipped.
Councilor Marco Yepez-Gomez asked Leidinger if he would recommend delaying the vote, and he replied that it would depend on whether they felt they still needed clarity. Lekin felt the church had applied in good faith and worried that a further delay would have a negative impact on the project.
"I think, if you want to change the rules, I think that's a conversation we can have, but I don't think we should change the rules now for this application," she said.
On a "shallow level," Leidinger said a property is generally determined by use and zoning as opposed to owner, so whether it is operated by a for-profit or nonprofit entity would be irrelevant. According to Lekin, the church is zoned urban core.
The council ultimately voted 7-0 to approve the application as presented.
Contact Robert Maharry at (641) 753-6611 ext. 255 or rmaharry@timesrepublican.com.