Three Reinvestment District Projects receive provisional funding approvals
posted on Friday, June 20, 2014 in Blog
The Iowa Reinvestment District Program is designed to assist communities in developing transformative projects that will improve the quality of life, create and enhance unique opportunities and substantially benefit the community, region and state. The program provides for up to $100 million in new state hotel/motel and sales tax revenues to be “reinvested” within approved districts. Districts cannot exceed 25 acres in size and must be in an Enterprise Zone or Urban Renewal Area.
Iowa Reinvestment District plans must include tax revenues generated by “new retail establishments” and “new lessors”. New retail establishments cannot exceed 50 percent of the total proposed capital investment. At least one of the new proposed projects within the district must reach a total capital investment of $10 million. And, the total amount of new tax revenues to be remitted to the municipality cannot exceed 35 percent of the total cost of all proposed projects in the district plan.
Three of the 10 applicants received a score in excess of 70 points (out of 100) and presented their projects to the Due Diligence Committee in May. The IEDA board today, upon the recommendation of the Due Diligence Committee, decided on provisional funding for the projects in the city of Des Moines, the city of Muscatine and the city of Waterloo.
The provisional funding decisions are designed to provide practical feedback for municipalities interested in creating a reinvestment district but are not final or binding. Following the provisional approval, final application materials fully meeting all of the program's requirements are due prior to March 1, 2015. Applicants may amend any part of the pre-application to represent any change to the proposed projects within the district. The final application will be re-scored in the same manner as the pre-application, if changes are made. The board's final funding decision may be different from the provisional funding decision based on the final application.
The city of Des Moines was provisionally approved for a maximum of $36,487,400 in funding for its proposed district in the city's downtown. The Des Moines plan proposes a total capital investment of $178.5 million and includes building a convention headquarters hotel, investing in infrastructure and amenities to support new visitors, redeveloping important downtown sites, preserving significant architecture, improving walk-ability throughout downtown, and connecting important amenities such as the Iowa Events Center, Principal Riverwalk, the Civic Center of Greater Des Moines and Cowles Commons, the East Village, Court Avenue and Western Gateway Park.
The Muscatine Reinvestment District received provisional funding approval of $10 million maximum for its $41.1 million capital investment. This district includes one major project, the Riverview Suites Development, consisting of three elements: the construction of a new hotel, the remodel of a vacant building into a conference and events center, and the construction of a parking ramp.
The city of Waterloo was provisionally approved for $12 million maximum for the TechWorks district, located at the west end of downtown and made up of land donated by Deere & Company. The district has a capital investment of $74.1 million and includes three projects. The first is a mixed-use development including a business-class hotel, industrial incubator, private sector lab and manufacturing maker-space and John Deere Tractor & Engine Museum. The second project area includes commercial out-lots such as a restaurants and retailers that complement other project areas. The third project area includes a marina for boat storage, boat sales, fuel sales and a riverfront restaurant.
Full application materials for these three projects will be available within 10 days for public viewing at www.iowaeconomicdevelopment.com/CommunityDevelopment/ReinvestmentDistrict. Applications for subsequent Reinvestment Districts will be accepted from March 1-15, 2015.
Download a spreadsheet of today’s awards: