Committee Recommends Iowa City Give $950,000 to Medical Building Project

IOWA CITY, Iowa - Iowa City may put nearly $1 million in public money toward a $5 million medical office building proposed for an east-side neighborhood city leaders have targeted for redevelopment.

MDK Development LLC has asked for the money for the 14,850-square-foot building it wants to build at the corner of Muscatine Avenue and William Street in the Towncrest neighborhood.

On Tuesday, the City Councils Economic Development Committee, made up of council members Susan Mims, Michelle Payne and Mayor Matt Hayek, voted unanimously to recommend the project receive $950,000 in city money. The full City Council will make the final decision at a future meeting, possibly next week.

It would be the first new building constructed as part of the citys efforts, started a couple of years ago, to revitalize the Towncrest neighborhood. Towncrest was originally intended as a medical campus south of Muscatine Avenue, but many of the medical offices have relocated and there has been a lack of investment the area.

Mims said she thought the medical building could be a catalyst for further projects.

Im excited to see some significant private money coming in. I think its a real key, she said.

The public money would come up front from three sources, said Tracy Hightshoe, Iowa Citys community development planner. It would include $325,000 from two programs created to help with Towncrest projects. The other $625,000 would come from selling bonds, which the city would repay with tax increment financing.

The city received an opinion from the National Development Council saying the project demonstrated a need for the $950,000.

Hayek said city staff also thoroughly vetted the request.

I think this is a significant jumpstart and is absolutely consistent with what weve talked about for years, he said.

Go here to read the rest:
Committee Recommends Iowa City Give $950,000 to Medical Building Project