New Downtown Iowa City Project May Get $2.5 Million from City

IOWA CITY, Iowa - A new high-rise building proposed for downtown Iowa City moved a step closer Tuesday to getting $2.5 million from the city.

The City Councils Economic Development Committee voted 3-0 to recommend that the full council OK a $2.5 million tax increment financing agreement with developer Marc Moen. The council could review the request as early as April 3.

Moen would put the money toward a $10.7 million, 14-story building he wants to construct at 114 S. Dubuque St. on the Pedestrian Mall.

Committee members and city staff said the project fits with the citys goals of attracting more owner-occupied housing and retail and office space downtown, and boosting property values.

Im excited about the project, council member Susan Mims said.

She and fellow council members Michelle Payne and Mayor Matt Hayek sit on the Economic Development Committee.

Plans call for the glass building to have retail space on the first and second floors, office space on floors two through four, and 26 residential units on floors five through 14.

Moen, who also is the developer behind the 14-story Plaza Towers downtown, said in an interview that hes had some inquiries about the retail space but couldnt talk about what types of stores may be in the building.

The offices are to be the high-end class A type city officials want more of downtown. And the housing would include rentals and for-sale units aimed at young professionals.

Moen said the project will not happen without the tax increment financing, or TIF, assistance, as a way to leverage private financing. The city received an opinion from the National Development Council concluding the project demonstrates a need for the $2.5 million Moen requested.

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New Downtown Iowa City Project May Get $2.5 Million from City