University of Iowa to begin second phase of graduate school housing construction

IOWA CITY - Following the success of the first phase of University of Iowa graduate student housing on the old Hawkeye Court grounds, officials have announced plans to begin the second installment.

Officials announced Thursday that a deal has been closed on the $34.5 million Phase 2 project to complete the Aspire at West Campus student housing complex on Hawkeye Court. Construction is expected to begin next month, with an anticipated August 2016 completion.

As a public-private partnership between the UI and Dallas-based Balfour Beatty Campus Solutions, the UI-owned land on which Aspire sits - leased to Balfour Beatty for 41 years - remains tax exempt, but the value of the buildings, which are owned, maintained and operated by Balfour Beatty, will go onto local tax rolls.

'It's been a great partnership with Balfour, with the city and with us, everybody seems very happy with the outcome, and it's been a great benefit for our grad students,” said David Kieft, UI business manager and director of real estate.

Marty Burkle, Iowa City Chief Deputy Assessor, said the taxable value of Phase 1 of Aspire, which includes 270 units, is about $22.6 million.

A rough estimate of the taxable value of Phase 2, which will include 252 new units - 84 one-bedroom and 84 two-bedroom units - among three, four-story buildings totaling more than 250,000 square feet, is about $21 million, he said.

'The city is getting a substantial increase on their tax roll,” Kieft said.

Aspire opened last fall, beginning the UI's replacement of the more than 45-year-old Hawkeye Court apartment complex.

'The first phase of housing delivered by the Balfour Beatty team in 2014 has been extremely well-received by the graduate student population,” Bob Shepko, president of Balfour Beatty Campus Solutions, said in a news release.