State approves tax credits for Iowa River Landing developments

Four companies redeveloping portions of the 180-acre Iowa River Landing complex in Coralville were approved on Friday for maximum tax credits of nearly $2 million by the Iowa Economic Development Authority Board.

Oliver McMillan, the city-appointed private developer of Iowa River Landing, will receive a maximum brownfield tax credit of $434,000 for redeveloping property at 950 Ring Rd. The $2.3 million project will involve construction of a 13,000-square-foot specialty tenant building on the 1.5-acre site.

Under Iowa's brownfield tax credit program, projects are eligible for up to 24 percent of a qualifying investment, which in the case of Oliver McMillan's development was $1,810,000.

Hodge Construction Co. in Iowa City was approved for a maximum brownfield tax credit of $500,000, for a qualifying investment of $4.5 million. Hodge is planning a $5 million redevelopment of property at 920 E. Second Ave. that will involve construction of two, two-story mixed use commercial buildings.

The buildings will have 36,000 square feet of space on the ground floors and 43,100 square feet of Class A office space on the second floor of each structure.

Craft LLC of Iowa City applied for a brownfield tax credit for redevelopment of property at 900 E. Second Ave. with a total budget of $2.5 million. The project, which will involve construction of a 6,500-square-foot restaurant, was approved for a maximum $420,000 tax credit on a qualifying investment of $1,750,000.

Watts Development Inc. in Iowa City was approved for a maximum tax credit of $500,000, on a qualifying investment of $12.5 million, for redeveloping property at 901 E. Second Ave. The $25 million project will consist of constructing 147,000 square feet of a mixed use development that will include 57 residential units, 12,000 square feet of office space, 13,500 square feet of retail space and a parking structure.

The Iowa Economic Development Authority Board also approved grayfield tax credits for projects in Cedar Rapids and Marion. Grayfield credits are for land that is deemed underused, failing or outdated.

ELM Cedar Rapids Opportunity LLC was approved for a maximum tax credit of $500,000 on a qualifying investment of $13.5 million. The company is redeveloping property at 601 Third St. SE in Cedar Rapids that was formerly a concrete plant and most recently a parking lot.

The project involves construction of a two-story, 81,000-square-foot commercial office building that will be leased to Intermec Technologies.

Phil and Becky High of PDS Investments, owners of Philips Diamonds in Marion, were approved for a $288,239 grayfield tax credit for a $2.4 million project that calls for demolition of existing buildings at 1317 Seventh Ave. in Marion. The Highs are planning to build an 18,000-square-foot, three-story structure with a finished basement.

The ground level will be Philip's Diamonds & Design Center, and second and third floors will be Class A office space available for lease. The lower level also will be available for lease.

Under Iowa's grayfield tax credit program, projects are eligible for up to 12 percent of a qualifying investment.