Plans continue to move forward for Hershey Hall

MT. PLEASANT — After a visit from Southeast Iowa Regional Planning Commission Executive Director Mike Norris, the Henry County Board of Supervisors invited SEIRPC to draw up a contract for establishing an Urban Renewal Area concerning Hershey Hall and bring it back to them at their Sept. 19 board meeting.

Norris attended the meeting to follow up with board about their resolution approving TIF rebate incentives for a project with Hershey Hall on the former Iowa Wesleyan University campus. The project would turn the building into a 22-unit apartment complex.

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Norris informed the board that the Iowa Finance Authority announced the Federal Housing Tax Credit awards including this Hershey Hall project.

“It seems like a pretty big win to have that after about a year lapsing from the university closing and then a $9 million investment in the building,” Norris said.

The Federal Housing Tax Credit award does not mean the development of this property can proceed, though. According to Norris, there are more steps to check off before it can move forward.

Norris stated that the TIF incentives are completed through the establishment of an Urban Renewal Area. He explained that this URA comes with a legal description which can direct property tax increment for specific purposes that are written into the URA.

“So, the increment is the difference between property taxes and values when the URA is established, and then what the new investment value will pay in taxes,” Norris said.

Henry County Supervisors approved SEIRPC drawing up a contract to complete the URA. This will cost the county $4,500 upfront but will be reimbursable through the URA tax payments once the begin.

Norris said SEIRPC’s first steps will be to establish a geographic area and legal description of the URA in September. Next they will work with the county’s bond attorney and the developer for Hershey Hall to draft a development agreement. According to Norris this contract will outline the roles and responsibilities for each party.

“Basically, the developer has to perform their role and make the investment and do all the improvements in order to qualify,” Norris explained.

Norris anticipates working on both the URA and agreement with the developer and county in September and October. Then an ordinance would need to be read multiple times and adopted before the URA would be ready for development.

While Norris and SEIRPC will move forward with this work, Henry County Assessor Nathan Milks expressed criticism in connection to this property after the developer asked the Board of Review to reduce the valuation of Hershey Hall. Despite the Board of Review lowering the valuation, the developer took the valuation to District Court

“Taking it to District Court is going to cost the county money because we’re going to have to have an appraisal done, and we’re going to have attorney fees to fight this in court,” Milks said. “I mean, don’t bite the hand that feeds you. Why would they take this to District Court.”

Milks then asked the supervisors to consider stipulating that they not move forward with the TIF district unless the developer drops the District Court case.

“That’s just my opinion,” Milks said. “And in the opinion of the Board of Review, this left a bad taste in their mouth when they got served.”

Norris responded to these concerns informing the board that the valuation disagreement is a separate issue and that litigation would not hold up his work on the URA or TIF.

Comments: AnnaMarie.Kruse@southeastiowaunion.com