CLINTON, IA- Economic Growth Corporation (GROWTH), a national 501c(3) non-profit community based development organization, continues to work diligently on securing financing for the redevelopment of the historic Wilson Building, at 215- 217 5th Avenue South in the heart of downtown Clinton, Iowa.
Due Diligence
GROWTH announced its intent to redevelopment the Wilson Building in November 2014. GROWTH had the property under option since December 2013 and closed April 2015. Since that time, GROWTH has been conducting its due diligence working to identify sources necessary to successfully complete the historic rehabilitation project. “As a non-profit community based development organization with a 30-year proven track record, we go into a project knowing it will takes more than 12 months to identify all funding sources that it will take to make a project happen,” said President Brian Hollenback. In addition, GROWTH also “weathered the storm” after the Wilson Building experienced damage to its historic façade that occurred in August. GROWTH was grateful to the City of Clinton and downtown business owners for quickly responding to the issue and coming up with a safe solution to stabilize the property until construction begins.
About the Project
The project includes preserving and transforming the Wilson Building into a mixed-use development with residential rental units and first floor commercial space. The development includes the creation of 32 residential market rate rental units, reducing the first floor commercial space to a total 9,360 square feet facing 5th Avenue South, allowing for the development for two-story, townhome type apartments coming off the alley facing 6th Ave. South. Residential lofts are 504 square feet, and one and two bedroom rental units range in size from 660 to 1,330 square feet. GROWTH intends to work closely with the Clinton Chamber of Commerce and Downtown Clinton Alliance to achieve common goals related to first floor activity.
Redevelopment costs for Wilson Lofts totals nearly $10.6 million and involves six layers of financing. Four of the six funding sources have been secured which include the following: Self-Supported Municipal Improvement District 2 (SSMID) from the Downtown Clinton Alliance, Tax Increment Financing from the City of Clinton, Workforce Housing Tax Credits from Iowa Department of Economic Development, and private debt from Lancaster Pollard.
Updated Timeline
On February 15, the Iowa Economic Development Authority announced the registration period being opened for state historic tax credits, a vital piece of financing that was delayed due to the state legislature revamping the program. The program revamping caused GROWTH to be delayed in its development timeline for Wilson Lofts. Currently, GROWTH is gearing up to submit its application for state historic tax credits by the end of February, while working simultaneously in securing the final financing pieces for the development.
This has adjusted GROWTH’s development timeline to the following:
Iowa Economic Development Authority: State Historic Tax Credits
o Application submission: February 2016
o Anticipated award announcement: April 2016
Iowa Economic Development Authority: Brownfields/Grayfields Tax Credits:
o Application submission: July 2016
o Anticipated Awards Announcement: October 2016
If GROWTH is successful in securing funding on all the above, it anticipates breaking ground in October 2016.
Catalyst for Investment
GROWTH intends to advance the Wilson Building’s historical intent by creating market driven housing that will ignite additional investment in the downtown. As an experienced community-based developer, GROWTH has experienced firsthand how projects like the Wilson Building can stimulate further investment, turning good downtowns into great destinations. The Wilson Building, listed on the National Register of Historic Places, is intended to advance commerce and economic prosperity in the downtown. By redeveloping historic buildings and putting them to use, the downtown economy is stimulated, citizens are provided with equal, fair, and quality housing opportunities, local contractors are provided with work, and local tax rolls are fed.
The Wilson Lofts development is anticipated to support 120 jobs during its construction period, and support a minimum 18 permanent jobs once completed.
“We understand what downtown housing creates. It’s not just about redeveloping a vacant building; it’s about the creation of jobs and strengthening the community’s fabric by bringing new resources that advance the retention and growth of community necessities like small businesses and housing access. Wilson Lofts will serve as a catalyst for further investment in downtown Clinton.” Brian Hollenback continues, “We intend to use a comprehensive approach to provide new resources for the overall Clinton community.”
About GROWTH
GROWTH, based out of Rock Island, Illinois, is an experienced non-profit community based developer that has created 228 units of downtown housing since 2001. With 178 units currently under construction and predevelopment, GROWTH’s downtown housing units will increase to 406 units over the next three years. In addition, GROWTH has also impacted more than 1,100 units of single family housing.
For more information about Economic Growth Corporation, visit www.economicgrowthcorporation.com or call 309-788-6311.
