Henry County certifies $8,900 in Hershey Hall project costs

MT. PLEASANT — The Henry County Board of Supervisors approved a resolution certifying $8,903.50 in administrative costs for the Hershey Hall Urban Renewal Project, ensuring the county can seek reimbursement under Iowa’s tax increment financing law.

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The costs, advanced from the county’s community betterment fund, cover legal and administrative work associated with creating the urban renewal area and adopting a development agreement. The certification must be filed before Dec. 1, 2025, to qualify for repayment through future increment tax revenues.

At the Sept. 18 Henry County Board of Supervisors meeting, the supervisors voted unanimously in favor of the resolution.

Supervisor Chair Marc Lindeen explained how the resolution is a continuation of the Henry County Hershey Hall Urban Renewal Plan for the Urban Renewal Area established by the county in 2024 after developers purchased former Iowa Wesleyan University property.

The plan allows the county to use tax increment financing (TIF) to help cover planning, engineering, legal, and administrative costs tied to redevelopment.

“This is thereby that the total cost of the administrative cost project advance from time to time from the Community Betterment Fund shall be treated as advanced from the community Betterment Fund, and the community Betterment fund shall be reimbursed for its total administrative costs from the tax increment finding finance the tax increment fund,” Moeller read from the resolution.

This URA covers about 2 acres on the former Iowa Wesleyan campus, including the block bordered by Broad, Broadway, Pearl, and Jackson streets

Developers are seeking to convert Hershey Hall into affordable apartments using Section 42 federal housing tax credits, which require units to remain income-restricted for 30 years.

Under the current plan, the developer would receive up to 80% of increment tax revenue for 15 years, capped at $360,000.

While supporting the resolution, Supervisor Steve Detrick reminded the board of the need to keep a close watch on property valuations before more money is committed.

“My only comment was just following up again with the assessor to see what the dollar values really, truly are here,” Detrick said during the meeting. “So we understand the dollars that we’re dealing with, what the assessed value is going to be, as well as what the tax is going to be, so we know in the long term how long it’s going to take us to recoup the dollars that we’re investing in this project.”

Comments: AnnaMarie.Kruse@southeastiowaunion.com