Local architect hopes to rebuild on Iowa City fire site

IOWA CITY - An area architect is hoping to take advantage of a new state program that encourages the creation of workforce housing in his plans for a downtown Iowa City tower.

Kevin Monson, of Neumann-Monson Architects and managing partner of property owner Van Patten House, LLC, has submitted a proposal for a 12-story building at the site of the former Van Patten building at 9 S. Linn St., which was demolished after being severely damaged by fire in 2011.

Formal plans for the building are still coming together, but Monson has reached out to the Iowa City Council for a letter of support and the $16,000 investment from the city necessary to take advantage of the state's newly created Workforce Housing Tax Incentives.

'It just happened to fit with what my hope was for the housing component of the mixed-use project that I'm hoping to build at the Van Patten House site,” Monson said. 'I'm nowhere close to being able to start my project, but I thought I would get the application in to see if I could get it at least that far.”

Iowa Economic Development Authority first began accepting applications for the new workforce housing program in February and applications are considered on a first-come, first-served basis.

Under the program, developers can receive tax credits of up to 10 percent of the construction cost for dwelling units that do not exceed an average unit construction cost of $200,000.

To be eligible, Monson needs a resolution of support and an investment of at least $1,000 per unit from the city. The Iowa City Council will vote on the matter Tuesday.

According to city documents, the proposed mixed-use building would include two floors of retail/office space, sixteen 500-square-foot studio loft apartments, four one-bedroom apartments and two two-bedroom apartments.

Monson said only the 16 studio units would be eligible for the workforce housing incentive, making for a potential $16,000 investment from the city.

The site of the former Van Patten building has been sitting vacant for several years after it was damaged by a massive downtown fire in 2011.

Monson said building on the lot still is pending a final agreement to acquire a small chunk of land where an addition to the old Bruegger's Bagels building once sat.

If approved by the state, Monson's project would be the first in Iowa City to receive the new workforce housing tax credits.

That said, earlier this month IEDA awarded $20 million in tax credits, with three Coralville projects - two future additions to the 808 on 5th project and Coral Ridge - on the list, receiving combined credits valued at roughly $2.48 million.

Tina Hoffman, IEDA spokeswoman, said the next round of credits will be available July 1 and the program has been incredibly popular due to the high demand for workforce housing.

'This is an issue in small communities and large communities all across the state,” she said. 'That's why we're seeing the demand that we're seeing.”

Tracy Hightshoe, Iowa City neighborhood services coordinator, said Monson's project would still need to go through the same city channels as other development projects.

'We expect him to come back for TIF financing as well,” she said. 'When and if he does it will have to go through our regular process.”