State suspends historic tax credit for Wold property in Davenport

The state has suspended a nearly million-dollar historic tax credit previously awarded to Andrew Wold for a downtown Davenport apartment building, the Roosevelt.

The Iowa Economic Development Authority cited pending legal action that it says is likely to impact Wold’s finances and ability to finish the project. Wold owns the site of 324 Main St., where a six-story building partially collapsed May 28, killing three people and displacing dozens of others.

Many are seeking money from Wold, including plaintiffs in several lawsuits related to the collapse. A masonry company is claiming Wold owes them close to $100,000 for work done. The city of Davenport has taken actions against him in court, and staff have said the city intends to seek reimbursement from Wold for the cost of tearing down the remnants of The Davenport apartment building.

Citing the unresolved legal actions against Wold, the Iowa Economic Development Authority issued a notice of default, telling Wold that his nearly $900,000 in pledged historic tax credits for rehabilitating an apartment building at 301 W. Sixth St. in Davenport would be put on hold until the litigation is resolved.

“In view of the pending legal actions and the likely adverse effect they will have on your financial condition, properties, business, or operations, IEDA has determined that you cannot, truthfully and in good faith, make the representations required to receive a tax credit certificate,” the letter to Wold stated.

Wold did not respond to a reporter’s requests for comment.

The state agency awards tax credits to developers who “sensitively rehabilitate historic buildings to offer them new life,” through the Historic Preservation Tax Credit Program according to the authority’s website.

Developers must apply and buildings and projects must meet certain criteria to qualify. The building must be deemed “historically significant,” such as being listed on the National Register of Historic Places. And the renovations must be “substantial.”

The state income tax credit amounts to up to a quarter of qualifying rehabilitation expenses. Wold’s maximum tax credit for the Roosevelt was $891,506 under the program, according to an authority spokesperson.

The Roosevelt is a 32-unit apartment building Wold bought for $1.16 million in 2020. The four-story building, built in 1907, held the Salvation Army until 2018, when the nonprofit sold to the Foundry Apartments LLC.

Wold was awarded a maximum of $513,200 in tax credits through a separate state housing program for the Roosevelt building, authority spokesperson Kanan Kappelman wrote in an email. The agreement, part of a state workforce housing tax credit program, closed in August 2022.

Wold also applied in 2022 for a workforce housing tax credit for 324 Main St., the building that collapsed, but the authority declined to grant the award.

Status of criminal investigation

The Iowa Division of Criminal Investigation began investigating within a few days of The Davenport’s collapse, lead criminal investigator Ryan Kedley has said.

The investigation is ongoing, Kedley said, and DCI is working with the Davenport fire and police departments as well as the Scott County Attorney’s Office in reviewing and assessing information relevant to the investigation.