Iowa City Council approves requests from two developments

IOWA CITY - The Iowa City Council has given the green light to provide financial aid to a local developer's plans for a Riverside Drive apartment complex and has approved the requested height bonus for a proposed 15-story tower.

The council approved Tuesday $1.8 million in tax increment financing rebates to Emrico Properties to help fund a $16.1 million apartment building on the former site of Hartwig Motors, 629 S. Riverside Drive, in the city's Riverfront Crossings district.

While the vote was unanimous in favor of the nine-year rebate, Mayor Matt Hayek said he was initially hesitant of the resolution.

"I will be a very reluctant supporter of this," Hayek said. "The thing that gets me over the boundary, the ledge, to be able to support this is the catalyst factor."

The four-story, U-shaped building would include a mix of studio, one- and two-bedroom apartments and eight three-bedroom apartments. Twelve of the 96 units in the building will be geared toward workforce housing and 71 parking stalls will be included beneath the building with parking for another 105 vehicles behind the complex.

Stressing sustainability, the building proposes solar panels on the roof and recycling centers on each floor.

City staff estimate the site's property value to increase from about $50,000 per year to about $320,000 annually with the building.

In the agreement, the developer has committed to dedicating right of way and construction easements for a planned pedestrian tunnel that will pass through the west embankment of the railroad bridge and streetscape improvements along Riverside Drive for streets, trees, and sidewalks.

Kevin Hanick, with Emrico Properties, said the project should spur further growth in the area, which falls in the southwest corner of the Riverfront Crossings District.

"We really feel very strongly that this is a catalyst project," he said. "This south gateway to Iowa City ... has been underutilized and underdeveloped."

The council also unanimously approved a seven-floor height bonus for a mixed-use 162,000 square foot tower for 316 Madison St. that would include 154 units with 248 bedrooms geared toward students and young professionals.

The Riverfront Crossings District code allows buildings up to eight floors in height, but the developer requested five extra floors for student housing and another two stories for sustainable design and energy efficiency. 

As part of the approved height bonus, the city will require the building meet LEED certification standards and the developer sign an agreement that ties the two-year rental permit to the management plan to ensure that on-site property management stays on the site.

"I think it's a fantastic location for student housing and for that density, this is a good place for it," council member Michelle Payne said. "They've done everything they need to do to get the height bonus."

If the developer 316 Madison LLC, which includes representatives with CG Hanson and Apartments Downtown, seeks financial assistance, that matter would come before the council for a formal vote at a later date.