March 29, 2024

Downtown Newton apartment project entering next steps

March 20 public hearing set for sale of former Newton Seed Store property

A public hearing has been set for the sale of 224 N. Third Ave. W. and 224 W. Third St. N., the property where the former Newton Seed Store was located. City council scheduled March 20 to hear any public feedback or proposals of hte sale on the property scheduled to be sold to Miller-Valentine, the Ohio developer which plans to build a 48-unit income based apartment building.

In September, council approved a preliminary development agreement with Miller-Valentine to support its tax credit application to receive State of Iowa Housing Tax Credits. During the review of the application, the Iowa Finance Authority insisted the public hearing process be completed prior to any tax credit being awarded. The city had previously planned to conduct the sale process after the award.

The apartment building would have income requirements including 60 percent occupancy at $27,360 for a single person and $39,060 for a family of four. Miller-Valentine is also proposing 10 percent or five to 10 market-rate apartments for the new complex.

The city found through recent surveys many employers have employees searching for housing with incomes in this range.

“We do hear from employers that they do have employees that struggle to find quality housing within Newton,” said city director of finance and development Bryan Friedman when the offer was proposed. “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.”

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.

Proposals will be accepted on the property until 3 p.m. on March 20. The sale of the property is subject to Miller-Valentine being awarded the tax credits. A decision on the awards is scheduled for the end of this month.

Miller-Valentine previously constructed the 52-unit Newton Place Apartments in 2015.

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