City moving forward with Miller-Valentine proposal

Miller-Valentine Group was given the go ahead by the Newton City Council to move forward with the application process for a new apartment building downtown. The Cincinnati, Ohio based company has plans to build a 48-unit building at 224 N. Third Ave. W., the former location of the Newton Seed Store.

Council gave approval for Miller-Valentine to create an application to submit to the Iowa Finance Authority for State of Iowa Housing Tax Credits. The credits provide financial assistance to building the structure and sets part of the occupancy based on income of the renter.

“Just like the Newton Place Apartments, the new proposed project would mostly be subject to income restrictions, due to the proposed State funding source,” city administrator Bob Knabel said. “The majority of the units would be for people at 60 percent of the area’s median income.”

The income required for 60 percent is $27,360 for a single person and $39,060 for a family of four. The city found through recent surveys many employers have employees searching for housing with incomes in this range.

“Recent surveys of local employers and employees indicate that there is a shortage of high-quality affordable apartments in Newton,” Knabel said. “These restrictions mean that the project would be geared toward workforce housing, especially new workers, and to retirees on fixed incomes.”

Councilwoman Miranda Kulis expressed concerns over the income restrictions at another apartment building in Newton, especially so close to the downtown area.

“I’ve had a lot of concerns about this going directly in our downtown vicinity,” Kulis said. “So many other apartment buildings in our community are already income-based, and I understand there would be some market-rate apartments, but I’m just not sold on having this downtown as well as the need for additional income-based apartments in our community.”

Miller-Valentine is proposing 10 percent or five to 10 market rate apartments for the new complex.

“We do hear from employers that they do have employees that struggle to find quality housing within Newton,” Director of Finance and development Bryan Friedman said. “A recent survey done by the Newton Development Corporation showed a long waiting list within our community. There is certainly demand for this. As we look to increase the quality of units I think projects like this, where there is a major $10 million investment held to very high standards by the state, I think can help better our situation and accommodate the demand.”

Friedman also said that market rate apartments are currently being pursued for the former Hotel Maytag project and additional projects in the city.

“We are looking at the full range of our rental market needs,” Friedman said.

NDC Director Frank Liebl echoed Friedman, telling the council there are currently 70 people on a waiting list for an apartment with another 85 people willing to move to Newton, if they could find suitable housing.

The details of the project include the purchase of the land for $350,000 and a property tax rebate for 15 years with a maximum of $33,333 per year. The project would be complemented with a parking lot and pod park on the quarter block across the street to the south near Bank Iowa.

Following approval, Miller-Valentine would finalize the application, which is due to the IFA in November. The application will then be reviewed with a decision on awards scheduled for March 2017.

Miller-Valentine was not the only developer to submit a proposal for the property. Cohen-Esrey of Mission, Kan., brought a plan to city staff to be reviewed.

“Myself, planning and zoning director Erin Chambers and development specialist Craig Armstrong each independently scored those proposals,” Friedman said. “The Miller-Valentine project outscored the other proposal submitted by Cohen-Esrey. The driver of that was that Miller-Valentine was proposing to pay $100,000 more for the land and provide 10 more housing units.”

Friedman said the city is keeping in touch with Cohen-Esrey for alternative sites for development.

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