26 Iowa communities’ downtowns to receive $2.6M from state

(The Center Square) – The Iowa Economic Development Authority announced June 30 it approved $2.6 million in grant funding for 26 communities’ downtown districts through its Community Catalyst Building Remediation program.

The communities each receive $100,000 toward the redevelopment or rehabilitation of underused buildings to stimulate economic growth, according to an IEDA news release. Cities can use the funds to rehabilitate one commercial building or two adjacent buildings with the same ownership, the authority said about the program on its website. They must supplement the projects with financial or in-kind resources.

Deconstruction in “dire situations” or for safety reasons is permitted.

Iowa Economic Development Authority Business Development Consultant Downtown Resource Center Jim Thompson told The Center Square that the pandemic impacted many projects this year.

“We had projects that were not able to move on from pre-application to full application because they were having challenges with supplies, the cost of supplies and the availability of contractors to work on their projects,” Thompson said.

The 26 projects that received funding were among 50 “successful” applications, he said. Among the committee’s considerations is gauging how likely it is that the project can be accomplished and the funding the city puts forward for the project, he said.

“We expect a partnership between the city and the property owner on successful applications,” Thompson said. “We do want them to lead to [additional catalyst grant-funded] projects. We want them to serve as an example not only in their town, but the rest of the state of Iowa.”

Gov. Kim Reynolds created the funding for the program with the legislature and IEDA and Iowa Finance Authority Executive Director Debi Durham funds the program, Thompson said.

McGregor’s Masonic Block rehabilitation project was among the grant recipients. McGregor Deputy Clerk, Economic Development, Duane Boelman told The Center Square that the three-story building, which is one of the city’s oldest buildings, became partially vacant at least a decade ago. Black Swan Developers bought the building and is redeveloping it into retail and residential space. The city proposed to Matt Aust, the company’s president, that the catalyst grant may be a good fit. It also awarded the company with two $5,000 business enhancement grants.

“The city was very, very pleased that he was doing this, and we wanted to be as supportive of the project as we could be,” Boelman said.

He said that with the historic building is an integral part of the historic district and enjoys prominent visibility from the Mississippi River.

“I think the work that Matt’s doing on the building will certainly be a catalyst and probably jumpstart some other projects in town too. … I’m really excited about it,” Boelman said.

Scoring criteria included impact, funding/partnerships and incorporation of sustainability and smart growth principles. The program began in fiscal year 2018. According to program rules, at least 40% of the grants are awarded to cities with populations of less than 1,500, the release said.

“Downtown districts are the heart and soul of our communities, and their strength is critical to the state’s overall well-being,” Durham said in the release. “The Community Catalyst program not only helps strengthen our downtowns at a critical time of economic recovery, it also inspires growth and development for years to come.”

The projects include the conversion of Waukon’s historic Tierney Building into a restaurant and Forest City’s former Irish Hospital Building into eight apartment units.

All 2021 recipients are viewable here.

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