March 19, 2024

Architectural firm hired for Hotel Maytag project

Developer Hatch says detailed architectural work crucial for tax credits

To take advantage of potential State Historic Tax Credits for the Hotel Maytag project, Walker, Coen, Lorentzen Architects, Inc. were hired by the city to perform a detailed architectural study of the building. Newton City Council approved the architectural firm services for $190,000 at Monday’s meeting at the request of “preferred developer” the Hatch Development Group.

“After the last three and a half weeks, our team has been here five times, going through the hotel in more detail. This request is being made because of the absolute necessity to secure a position for tax credits on a reservation allocation list with the state,” Hatch Development Group Principal Jack Hatch said.

The Hatch team has identified the need to move forward with more detailed architectural work in order to have the best chance to secure more than $4 million in State and Federal Historic Tax Credits for the project. The tax credit programs are subject to potential budgetary cuts in upcoming years, so submitting during the October 2017 reservation time frame maximizes the opportunity to receive these credits Hatch said.

“It is very intense and our team of Matt Coen and Andy Lorentzen from our architectural firm have secured these tax credits through the reservation by a very thorough presentation,” Hatch said.

The contract will have the firm follow the standard American Institute of Architects form. The work will be used for a July submission to the State Historic Preservation Office.

A three-step process is used to issue the Historic Tax Credits at the state and federal levels. The first step is to establish the historical significance and eligibility of the building. This step has been completed for the Hotel Maytag.

The second step is to complete a detailed set of plans that describe the condition of the building and the proposed scope of rehabilitation work city administrator Matt Muckler said. The state reviews these Part 2 plans against the U.S. Secretary of the Interior’s Standards for Rehabilitation and commits tax credits for approved projects.

The final step happens only after the project is completed. It certifies that the rehabilitation work was constructed as proposed in the plans. After completion of Part 3, the project would receive the Historic Tax Credits. These amount to 45 percent of the eligible project expenses which for Hotel Maytag, are projected to be $4.7 million.

Funds that have been bonded to support the Hotel Maytag project will be used to finance the study along with additional North Central TIF District resources. The study would be property of the city, should a final development agreement not come to fruition with the Hatch Development Group.

“The expenditure is needed towards this project in any scenario. Even if we are not able to reach a final development agreement with the Hatch Development Group, the city would own these detailed architectural plans that would be transferable and usable as a valuable asset for any developer,” Newton Economic Development Director Bryan Friedman said. “It is a worthwhile expenditure to try to capitalize on the upcoming funding window and keep furthering our efforts with this project.”

While a development proposal is still in the works, Hatch is confident the two parties will finalize an agreement prior to the August deadline.

“We truly understand the gem that you have and it is one that excites us,” Hatch said.

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