First of new property taxes that come with PCI's new $37-million clinic project will pay for clinic's new parking ramp

A redevelopment agreement between the city and Physicians Clinic of Iowa will direct property-tax dollars generated by a new $37-million clinic to pay for the clinic's new 450-space parking ramp.

The City Council is expected to approve the agreement at its meeting tonight, an agreement which is a piece of a larger memorandum of agreement among City Hall, the clinic and the city's two hospitals. The larger agreement, approved in October, established a new Medical District along 10

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Street SE between the two hospitals.

 Physicians Clinic of Iowa has told the city it will begin construction this spring on its new 180,000-square-foot clinic building at Second Avenue and 10

The new Medical District is in an existing tax-increment financing district or TIF district, and the property taxes in the district tied to new investment will stay in the district for use there.

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Street SE, with an expected completion date in the fall of 2013.