Nevada, Boone and Madrid receive nearly $2 million in tax credits for workforce housing projects

In an effort to offer additional workforce housing, roughly $1.8 million in state tax credits will aid the construction of 86 new residences for three Ames area projects, the Iowa Economic Development Authority announced Friday, which includes renovations to an old hospital.

The projects in Nevada, Boone and Madrid will receive workforce housing tax credits from the IEDA.

A shortage of workforce housing is one of the challenges facing many Iowa communities, especially as they try to grow their business districts.

“Housing is a critical part of efforts to strengthen the quality of life statewide,” Debi Durham, director of IEDA and the Iowa Finance Authority, said in a news release. “The awards announced today will help more communities thrive and more families move where opportunities await them.”

Each local project will produce market-rate housing that does not require specific income levels to qualify, Brenda Dryer, senior vice president of the Ames Economic Development Commission, told the Ames Tribune.

“This program is unique in regards to the fact that it is about adding housing units into our communities to build up available housing across Iowa,” she said. “It’s really geared to support workforce growth across Iowa.”

The AEDC has partnered with Nevada, Boone and Madrid and housing developers to apply for the workforce housing tax credits, Dan Culhane, president and CEO of the organization, said in a news release.

Three applications were submitted and all three were funded at the requested level, Dryer said.

Former Story County hospital will be home to 60 apartments

Nevada's transformation of the former Story County Hospital will receive $1 million — the maximum tax credit provided — resulting in 60 apartment units.

The project involves the north campus of the former Story County Medical Center, which is currently vacant except for the Senior Care Center located in the multi-story portion.

A new senior care facility is being built behind Nevada's current Story County Medical Center, vacating the old campus by the end of the year, Dryer said.

“I think this project is going to get a lot of excitement and it’s also really going to help that area of the community,” said Jordan Cook, Nevada’s city administrator.

Local developer Nevada Flats, LLC will handle project construction.

“If everything goes as planned, they will start the rehabilitation of the old clinic facility late this year,” Dryer said.

When Nevada's conversion is complete, all three buildings on the campus — the former hospital, clinic and senior care — will be repurposed and transformed for long-term living.

Obtaining the tax credits is one of the initial project steps, Dryer said. The hospital, Story County and the developer still need to agree on the property transfer while brownfield tax credits be sought to cover asbestos removal.

Boone site was formerly declared a nuisance

In Boone, a project for eight twin rental homes on the community's westside will receive $303,000 in tax credits.

The Boone City Council years ago had designated the block of Eighth Street and Ringold Street as a nuisance. The property was sold and the new owners worked to tear down the home and other structures, which the city has divided into four lots.

The housing project will include four twin homes on the now vacated lot, which is already equipped with infrastructure such as water and sewer.

“Those four twin homes will equate to eight units of housing, and they’ll be a little bigger in size,” Dryer said.

The twin homes will feature three or four bedrooms and double garages.

“Having a rental that can really be targeted for somebody that has a growing family or somebody who works from home and needs to commit a bedroom to an office — that makes us very excited about this project,” Dryer said.

Consruction is expected to begin soon, with Empire Realty, LLC. handling development.

“This State of Iowa funding is critical to move our Ringold Estates project forward. We wish to extend our gratitude to the City of Boone, Boone County Economic Growth Corporation, and the team at the Ames Economic Development Commission for providing us the support we needed at all phases of project planning to submit a successful application,” Josh and Heidi Walters, owners of Empire Realty, said in a news release.

Gateway Cottages in Madrid continues to grow

In Madrid, Kading Gateway Cottages' existing housing development is set to expand thanks to $585,000 in workforce housing tax credits.

“Madrid’s been blessed with a lot of growth, so the Kadings worked with the city and the state and will be adding 18 units on top of what they already have in the community,” Dryer said.

She said they expect the additional units will begin construction soon.

“The Kadings have a waiting list for their neighborhood in Madrid, so they’re really excited to get this project started,” Dryer said.

In total, the IEDA and Gov. Kim Reynolds revealed $38 million in workforce housing tax credits for projects across the state. The monies will support 59 housing projects expected to create more than 2,000 residential units.

“When Iowans have the opportunity to live where they work, our people, communities and businesses thrive,” Reynolds said in a news release. “Building a strong continuum of housing across the state supports our workforce, attracts new residents, and grows our economy.”

Ronna Faaborg is a reporter for the Ames Tribune. Reach her at rlawless@gannett.com.

This article originally appeared on Ames Tribune: Apartments planned for old Story County Hospital boosted by $1 million tax credit