Chauncey gets go-ahead from Iowa City Council

IOWA CITY — Love it or hate it, Iowa City's polarizing Chauncey tower has been greenlit by the Iowa City Council.

It was nearly three years ago that the city put out a request for proposals to find a developer for the northeast corner of College and Gilbert streets, setting in motion the course of discussions and meetings that ultimately led to Monday's final votes approving the 15-story tower.

Looking back on the review process for the building, Mayor Matt Hayek described it as 'nothing short of exhaustive.'

'It has received untold amounts of time,' he said. '... I would say, in the aggregate, this is a very strong project and one that's good for the community.'

At the meeting, which included several hours of discussion — as is common at Chauncey public hearings — the Iowa City Council voted 4-2 to approve the development agreement between the city and Moen Group. Council members Jim Throgmorton and Kingsley Botchway were opposed, and Michelle Payne was recused due to a conflict of interest.

The council unanimously approved a city investment of up to $14.2 million to fund the roughly $49 million tower — which was detailed in the development agreement.

The third and final reading to rezone the 27,200 square feet of largely city-owned land where the building will be located passed with a 4-2 vote, again with Throgmorton and Kingsley opposed.

According to city documents, the city will convey the land and geothermal heating easements — valued at almost $2.1 million — to the developer, and the remaining nearly $12.1 million will come through tax increment finance dollars.

The Chauncey's four-year construction period is expected to start next spring, with the city offering short-term construction financing at first, followed by a 25-year TIF revenue bond.

Roughly two dozen people spoke during the meeting, with the crowd split almost evenly between support and opposition to the project.

Some residents, including Tom Carsner, were critical of the use of TIF to help fund the project.

'My hope is this is the last time we see a TIF of this size and dimension,' he said. 'I think it's time for these types of TIFs to stop.'

However, residents like Donna Sorensen praised the project's scope and list of amenities, as well as the fact that the man behind the Chauncey, Marc Moen, is a local resident and proven developer.

'We are blessed to have a local developer among us who has proven quality. ... That's a bonus to us. I'm not sure we really appreciate that,' she said. 'I think this is a win-win for our community, and it would be, not to be melodramatic, almost tragic if we do not move forward.'

As far as the TIF goes, Throgmorton said he could not support the project, arguing that the roughly $14 million should go toward the bottom half of residents in affordable housing or services.

However, council member Susan Mims noted that the money for the TIF is not in the city's coffers, but rather is directly tied to the taxes generated by the project.

'We don't have these dollars unless the project is built,' she said. 'The project won't be built unless we have a TIF.'

Per the agreement, the developer will include such elements as office space, a hotel, bowling alley, two movie theaters, residential units and upgrades to the adjacent Chauncey Swan Park. The building will be constructed to at least LEED silver standards.

When finished, the Chauncey is expected to generate $1.17 million in annual tax revenue.

The Chauncey will provide the city with five one-bedroom units for $1 million — which will be covered by federal dollars — to be owned by the Iowa City Housing Authority and offered as affordable housing units.