Goldfinch Growth proposes new development on county property

The building is more than 100 years old and its original purpose has long since been abandoned by the county, but the co-owners of a local real estate development company see the almost forgotten structure’s potential in becoming a hidden gem of downtown Newton.

Bryan Friedman and Natalie Umsted of Goldfinch Growth presented their vision and proposal to the Jasper County Board of Supervisors during its meeting Tuesday, with an intent to purchase the county-owned property on 115 W. Second St. S. and transform the space into a vibrant food or drink service establishment.

“We think that its downtown location, access to parking and unique sense of place would make it an ideal building for this type of use,” Umsted said during her presentation with the board.

According to documents provided by Goldfinch Growth, the original structure was built in 1915 — with a south addition incorporated five years later — and was initially used as part of a public safety complex which included a county jail and sheriff’s residence.

Two buildings take up the parcel of county-owned land. Umsted said Goldfinch Growth is interested in purchasing the southernmost building. If the sale is successful, Umsted said the company would pay for a survey to be implemented and split the two buildings.

“These buildings have been part of the Newton community for the past 100 years,” Umsted said. “We think taking steps to preserve them today can ensure they’ll be apart of the community for the next 100 years.”

The vision

The company envisions a western facing building, taking advantage of the city-owned public parking lot west of the property. Goldfinch Growth would also use portions of the pedestrian alleyway to accommodate outdoor space for the business.

The proposed restaurant, bar or pub would seat an estimated 50 to 75 guests, plus an additional outdoor capacity. Goldfinch Growth has also considered retail or office use for the building.

During Goldfinch Growth’s presentation at the board of supervisors meeting, Friedman and Umsted provided mock images to better illustrate the company’s vision for the property, but also explained the company’s strategy and clarified the advantages Jasper County would benefit from the proposed establishment.

“It would take a tax exempt building and have it start paying property tax,” Umsted said. “Additionally, a successful business would generate sales tax. It would also create a new, vibrant social space for the community and it would preserve a historic building with unique architecture and character to ensure it’s part of our community for years to come.”

The local real estate developer would use economic development tools for historic preservation of the building, ultimately retrofitting the entryways and windows and using historically appropriate replacements instead. They would also maintain many of the well-preserved features such as the crow-stepped gable and brickwork.

Umsted also highlighted nearby areas Goldfinch Growth is not interested in acquiring, including the county parking lot east of the building and the county elections office.

Goldfinch Growth estimated the project budget to be approximately $450,000, which Umsted said would be funded by a mix of private financing, federal and state tax credits and local and state grants. One of the more important grants is the state-level, widely competitive Main Street Challenge Grant for $75,000, the deadline of which is Sept. 21.

“Our current funding estimation doesn’t work without receiving that grant, so we would like to be able to apply for it this year if the county would be interested in moving forward,” Umsted said.

Despite the specifics of the development proposal, Umsted told the board a tenant has not been arranged currently. Concluding the company’s presentation, Umsted asked the board to set a public hearing to consider purchase proposals for the county building and have language state that a successful bid would not be based on price alone but on overall development impact. She also asked to allow a Goldfinch Growth-paid architect to have access to building for measuring and assessing the scope of the renovations.

“We would ask the county to give a contingent endorsement of the project proposal for our Main Street Iowa Challenge Grant, subject to a successful sale of the property,” Umsted said.

Further discussion

Following the presentation by Umsted and Friedman, board member Joe Brock said he would be in favor of a development of some sort and to possibly auction the building.

“I think we established that we don’t have a need for that building any longer … I think the building could definitely be for sale,” he said.

Supervisors vice chair Denny Carpenter motioned to have the building appraised before any final decision was made. Chairman Doug Cupples seconded the motion. A lengthy discussion ensued between the board and meeting attendees. Jasper County Treasurer Doug Bishop said the proposed assessment — which he estimated would cost $2,000 or $3,000 — would not be worth the effort.

“I think an appraisal would be a waste of money,” Bishop said. “There’s a true market value and that market value is going to be driven off of who wants it.”

Jasper County Auditor Dennis Parrott said an appraisal is important from a public’s point of view, as it is protecting the public’s investment. However, he said the action might also mislead the public into thinking the appraised price tag is what the county can get.

“Appraisal protects the public in some aspects, because it tells you what the value of the property is, but then they also have to understand if you get ready to make a decision to sell for less than what it’s appraised, you’re going to have to explain your reasons for doing that,” Parrott said.

Friedman reasoned and said Goldfinch Growth would make “an aggressive, fair offer” on the building.

Carpenter’s motion for an appraisal was denied 1-2, with Cupples and Brock voting no.

Umsted said Goldfinch Growth would prefer to have its purchase contingent on winning the Main Street Challenge Grant.

“We would want to create this property into something really nice, and without winning some of those state and local grant funds that would be a lot more challenging to do and have it still be a viable business decision,” she said.

Parrott suggested the board make a motion to vote on selling the building for economic development, which could allow Goldfinch Growth to pursue its grants. Eventually, the board will hold public hearings on the building, accept bids and then make a final decision.

The board voted 3-0 to put the southern building at 113 W. Second St. S. up for sale for the purpose of economic development according to Jasper County parameters, which will be set by the board.

Friedman said, “We’re excited to be moving forward with this process.”

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com