Iowa City Council supports workforce housing in Riverfront Crossings District

IOWA CITY - More than 300 units of workforce housing in the Riverfront Crossing District received unanimous financial support Tuesday from the City Council.

The council pledged $1,000 per housing unit at 1201 and 1301 Gilbert St. to clear the way for the developer to apply for state tax credits.

Property owner Randy Miller plans to construct eight buildings on the two parcels over the next few years. Pleasant Valley Garden Center and Alexander Lumber currently are on these lots.

Construction on the first building, containing 27 studio apartments and first-floor commercial or office space, is scheduled to begin this year, according to a memo from Tracy Hightshoe, neighborhood services coordinator.

In all, the developer requested support for up to 312 units for affordable housing across five buildings. The units are intended to target young professionals, graduate students and retirees, according to the memo.

'Look at the incredible increase in housing that this is doing,” said council member Susan Mims. 'Anytime that we can increase the supply, it certainly is going to help in terms of costs for tenants or buyers.”

Developers are required to get municipal financial support before applying for the Iowa Economic Development Authority's Workforce Housing Tax Credits.

If approved, the IEDA does not place income or rental regulations on the units but requires the housing cost less than $200,000 per unit to construct in hopes of keeping rents low.

While workforce housing doesn't necessarily mean affordable - as it can be targeted at middle income households - the Riverfront Crossings District itself requires affordable housing units.

The council voted 6-0 last summer to require inclusionary housing in the district. This mandates builders provide affordable housing in 10 percent of the units being developed for 10 years, or pay a fee of up to $80,000 per unit.

'We want to see growth in the Riverfront Crossings District. I'm not in love with how the state structured this particular program in terms of not having any income limitation, but that's a state issue,” said council member Rockne Cole. 'We use the development tools that we have, and I'm an enthusiastic supporter of this particular project.”

The city previously has supported three other projects for this program, according to the memo, but none are this large. The other three range from 15 to 40 housing units, including a recently approved seven-story, mixed-use building in downtown.

The workforce housing vote was just the first step in getting the development finally approved. The buildings will have to go through many other approvals including site plans and building reviews, Hightshoe said.

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