18 brownfield/grayfield projects to remedy urban blight
DES MOINES, Iowa – The Iowa Economic Development Authority (IEDA) recently approved redevelopment tax credits for 18 brownfield and grayfield projects. The Redevelopment Tax Credit Program provides financial assistance for the acquisition, remediation and redevelopment of eligible brownfield and grayfield sites.
According to the Cedar Rapids economic development liaison Jasmine Almoayed, the tax credits are the determining factor for developers in Cedar Rapids where the record flood of 2008 devastated more than 1,000 city blocks on both sides of the Cedar River. Cedar Rapids won about one-third of the total redevelopment funds offered by IEDA this fiscal year, a fact that she credits to the strength and promise of the proposed projects for the redevelopment of damaged portions of the city’s core.
Eligible brownfield properties include abandoned, idled or underutilized industrial or commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. Eligible grayfield properties include abandoned public buildings, and industrial or commercial property that has been developed and has infrastructure in place but the property’s current use is outdated or prevents a better or more efficient use of the property.
Tax credits are available for up to 24 percent of a qualifying investment in a brownfield, 30 percent if the project meets the requirements of a green development. Grayfield sites are eligible for 12 percent of a qualifying investment, or 15 percent if the project meets the requirements of a green development.
The total tax credit available for FY 2015 is capped at $10 million, with a maximum of $1 million per project. The businesses IEDA approved include Rowell Hardware Development, New Bohemia Station, Station on First, Kingston Lofts, Commonwealth Senior Apartment, The Clockhouse and Culver’s Water Rock Properties in Cedar Rapids. Others that received approval are Continental Lofts, Gold Coast Housing and Riverwatch Place in Davenport, as well as FB Algona in Algona, 125 Broadway of Council Bluffs, Nexus at Gray’s Landing in Des Moines, Madewell in Mediapolis, Ho-Chunk of Sioux City, Northwest Iowa Mental Health Center in Spencer, and KWWL Television in Waterloo.
Source: KGAN Channel 2