Developer of Montgomery Ward & Co. building approved for tax rebates
Nov. 4—The developer of the historic Lederman/Montgomery Ward & Co. building in downtown Newton — who has committed to investing more than $1.5 million into the redevelopment and rehabilitation project — will receive a forgivable loan and a tax rebate from the city over the next 10 years, totaling $160,000.
According to city documents, the tax abatement will be on a sliding scale and reduce by 10 percent each year. The maximum rebate over the next 10 years will not exceed $85,000. The forgivable loan is $75,000. In exchange, the developer has agreed to a minimum assessment of $475,000 applied to the property.
Located in the North Central TIF District at 118 N. Second Ave. E., the building has been identified as one of the most significant properties in the area in great need of rehabilitation. The development company, Ex Nihilo, LLC, intends to turn the building, which has been unoccupied for many years, into retail space.
Jerry Schwaller, of Ex Nihilo, provided an update on the project to council members during their Oct. 16 meeting. He said the demolition has been completed, and he is now going through the architectural development process. The design phase is "pretty well done," he said, and will soon be bid out.
"Hopefully early next year, 2024, we'll be on the construction phase," Schwaller said at the meeting. "The only hold up at this point in time is the historic tax credits, which we hope to have done and finalized early next year. Once we get that, hopefully there's no stopping us."
Council member and mayor pro-tem Randy Ervin thanked Schwaller for the update, saying he had an opportunity to see the building and designs.
"It's an awesome thing for the community," Ervin said. "Thank you."
