The redevelopment of the former Hotel Maytag, a project years in the making, is looking to take a big step forward at Monday’s city council meeting. Several public hearings will be held in relation to Hotel Maytag including the authorization of the $400,000 sale of the building to Hotel Maytag Investors, LLC headed by Hatch Development Group.
The city originally purchased the building for $549,000 in September 2016 and has since worked to stabilize the building and find an investor to lead the restoration of the historical downtown landmark.
After a thorough search process, the city selected Hatch Development Group in May to lead the redevelopment. Following the selection, Hatch set to work gathering funding and filling out the proper paperwork for state and federal incentives.
The company is now poised to take ownership of the property and begin the extensive renovation. It will also enter into an agreement for private development with the city for economic development grants and property tax rebates.
The agreement will provide $2.75 million in economic development grants from the North Central Urban Renewal Area in the form of TIF funding. It will also include property tax incentives in the form of annual appropriation incremental property tax payments in an amount not to exceed $360,000 during the next 15 years.
The $2.75 million, which will be reduced to $2.16 million following the $400,000 purchase price and a $190,000 reimbursement for architectural fees, will likely be paid out in three installments which are tied to benchmarks in the development agreement, city administrator Matt Muckler said. During the next three years, payments would be sent at an approximate rate of $160,000 in September 2017, $950,000 in January 2018, and $1,050,000 in spring or summer of 2019.
“Outside of the taxes on growth of the tax base within our downtown business district, there are no property taxes or any other funding sources involved,” Muckler said. “There will be no increase to the property tax levy.”
Also as part of a proposed agreement, the city will sell the city-owned property At 114 N. Second Ave. E. for $1. Hotel Maytag Investors plans to use the area as a parking lot for the Hotel Maytag property.
Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or email@example.com