Developer pitches $10M apartment complex

A developer pitched a $10 million downtown apartment complex proposal to the Newton City Council at its Monday meeting.

Senior Developer for Miller-Valentine Residential Development Pete Schwiegeraht presented a potential “workforce” apartment complex at the former Newton Seed Store location, on North Third Avenue West and West Third Street North.

The approximately 50 unit, four-story complex would be the second apartment development for Miller-Valentine in Newton following the Newton Place Senior Housing completed last year.

“With that development we captured half of what we saw as a need for the community. As we did our market studies we saw that the senior demographic was your number one growing demographic and you wanted to be able to keep them here local in your community, and that is wonderful,” Schwiegeraht said. “What we found was there is probably a bigger need in workforce housing.”

Schwiegeraht noted the large number of commuters traveling from outside of Newton to work in the community. The lack of high-quality housing options for those workers is leading them to live elsewhere, which is where Miller-Valentine would like to step in.

“We really see this as number one, an opportunity to grow the community, bring your employees, who unfortunately have to live outside of the community, into the community,” Schwiegeraht said. “Also, it could serve some of the folks who live in the community but could benefit from a better option or a higher quality option to benefit their family needs and their needs.”

The State of Iowa housing tax credit program, which was utilized to build Newton Place Apartments, will be used to finance the project. By using the program, a portion of the units would target the 60 percent adjusted median income range and under.

Depending on the household, that income level could be in the mid-to-high $40,000s.

“There is no Section 8 housing. There is no HUD involvement. This isn’t public housing, residents will be paying their own rent, we are just committed to providing an affordable rent at a high-quality unit so they can make for a better quality of life,” Schwiegeraht said.

Along with the adjusted rate apartments, Schwiegeraht said they are planning to have 10 or more true market rate units in the complex.

“What is good about this development is it will really cater to all,” Schwiegeraht said. “If we have spill over seniors, there is going to be one and two bedroom units, and they may desire to live there. Also, you have your young professional and potentially your students.”

The complex would also have a portion of larger units that could cater to a small to medium family.

When describing the appearance of the building, Schwiegeraht said Miller-Valentine sees the new complex as a transition from downtown.

“This is more downtown, we are going to transition into a more urban footprint format with a flat roof,” Schwiegeraht said. “The internal corridors will have similar amenities. We’ll have the business and fitness centers, we’ll reproduce that in the new building so they do not have to share.”

To move forward with the project, the developer is seeking city incentives the purchase of the city-owned land. The incentives come in the form of a five percent or $500,000 commitment on the $10 million project which is required by the state to receive the tax credits.

“We are requesting we receive through a similar format that was used last time, a 15 year TIF rebate of taxes,” Schwiegeraht said.

A specific dollar amount was not given for the price of the land, but Schwiegeraht said he feels the amount will more than fairly compensate the city for the land and demolition costs already incurred.

The company is also looking for support from the council after a final presentation is given at a future meeting.

“If you like the development we would love to utilize this land, and if that is the case, we hope you would support our project as we submit it to the state on Nov. 2,” Schwiegeraht said.

Councilwoman Evelyn George said she had toured the senior apartments and was impressed with what she saw.

“It is lovely. I love the amenities, and I have talked with some of the residents there. I know it really truly has met a need that we have here in the community,” George said. “I do believe that we have others in the workforce development that are looking for the same amenities and I appreciate you bring this forward.”

The council will further discuss the potential apartment complex at a future meeting.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com