Council to vote on funding rebate for Sabin Townhome project

IOWA CITY - Plans are moving forward for an Iowa City project that would wrap 28 townhouse condominiums around a parking ramp with room for more than 600 vehicles.

Iowa City's council Economic Development Committee approved 3-0 a request by A&M Development for just shy of $1 million in tax increment finance (TIF) rebates for the project, which is planned for the site of the former Henry Sabin Elementary School on the corner of Dubuque and Harrison streets.

City Economic Development Administrator Jeff Davidson said the Sabin Townhome project, which would be geared toward young professionals to seniors, is another example of prime Riverfront Crossings District planning.

'This is part of the larger master plan in the area,” he said.

The Iowa City Council will discuss the proposed financial aid at a later meeting.

The condominium units are estimated to rent for $1,500 to $1,700 a month.

The townhouse portion of the project is estimated to cost about $7 million total, with the entire project likely costing about $30 million.

The developer would fund the $976,277 gap through an 11.4 year TIF rebate. City officials estimate the property to generate $122,000 annually in property taxes, compared to the zero dollars currently being generated on the property.

It is also proposed that three of the townhouse units would be sold to the Iowa City Housing Fellowship for affordable housing availability.

A series of events must take place before work can begin on the Sabin Townhome project, including the completion of the next door five-story MidWestOne Bank building.

Kent Jehle, executive vice president of MidWestOne Bank, said the first three floors of the building should be finished by June 2015, at which time employees in the home mortgage center will move over from their current location in the Sabin school building. Ultimately, about half of MidWestOne Bank's 170 downtown employees will relocate to the new office building as well.

'We are on track, certainly we're wanting to make sure things get buttoned up before we get to the winter season,” Jehle said.

Jehle said plans are in place to connect the bank office building to the parking ramp structure via skywalk.

'Our intent would be to have a skywalk from the third floor of our office building to the ramp for employees to be able to access the ramp from our building and visa versa,” he said.

After the Sabin school is vacated, it will be torn down to make way for the future parking ramp and townhouses.

The Sabin Townhome project is estimated for a 2016 completion date.