Iowa City project fits the bill for TIF

If the City of Iowa City must move forward with more higher-income housing for downtown, Marc Moen's recently modified proposal for the Chauncey is appealing.

Not only does the project include several downtown attractions - such as a movie theater and bowling alley - which Iowa Citians have identified as priorities but independent business owners have been unable to sustain, it also comes alongside Moen's solid track record on similar projects.

The Economic Development Committee agreed last week to recommend to the full City Council that a newly modified 15-story Chauncey receive a request for $14.2 million in public financing. The financing would be split between $12.1 million in tax increment financing (TIF) and allowing Moen to invest the $2.1 million he would have paid for the now vacant property back into the development.

The total price tag for the development is $49 million.

Critics worry the TIF deal signals a sea change for the council, which has been relatively reluctant to enter into such agreements in the past. They fear creating a climate in which developers expect millions of dollars in incentives for any project, simply as a matter of course.

In fact, unlike other municipalities' more questionable, and increasingly common, subsidy of projects loosely promising 'economic development,” the Chauncey fits the original purpose of TIF - to spur improvement of blighted or underperforming parcels of land for community good.

Could the project have been tailored to fulfill even more of the community's needs and wishes? Possibly. Affordable housing units come immediately to mind, and should be a priority in future TIF-funding considerations.

But it would be a lot to expect one building - even a 15-story building - to check off every item on the community's wish list.

That the Chauncey includes significant amenities that Iowa Citians have been clamoring for is too often forgotten in the current debate. So, too is Moen's history of honoring his past commitments to similarly desired (and useful) offerings, such as the grocery store on the ground floor of the nearby Plaza Towers - also a controversial move by the city in it's day.

So while critics are right to call for serious consideration, even skepticism, of tax-funded incentives for developments, it's clear the Chauncey clears the bar.

l Comments: (319) 398-8262 or editorial@thegazette.com