Five Quad Cities projects win Iowa grayfield tax credits

More than $18.5 million in grayfield and brownfield tax credits were awarded to 31 Iowa projects recently by the Iowa Economic Development Authority board. Five of the grayfield site projects are in the Quad Cities.

The state’s Redevelopment Tax Credit Program provides financial assistance for the purchase, remediation and redevelopment of brownfield and grayfield sites, according to information provided to the IEDA board. 

The state describes grayfield sites as those with abandoned public buildings and commercial or industrial properties that previously have been developed and have infrastructure in place but are outdated, vacant or underutilized. Brownfield sites include environmental contamination.

Quad Cities projects awarded tax credits include:

• Vision 2021, LLC applied for the Grayfield 12% tax credit for the $1,380,000 redevelopment of two old, underutilized buildings on North Harrison Street in Davenport. The lower level of the main structure will be redesigned and updated to include 10 salon suites and one commercial storefront. The balance will be converted into seven market-rate studio apartments.

Recommendation – Grayfield tax credit of up to 12% of qualifying investment of $1,180,000 for a maximum tax credit of up to $140,000.

• Rodney Collier applied for the Grayfield 12% tax credit for the $169,000 redevelopment of a vacant commercial building in LeClaire. The building will be partitioned off into four separate commercial bays and all new mechanicals will be installed.

Recommendation – Grayfield tax credit of up to 12% of qualifying investment of $164,960 for a maximum tax credit of up to $19,000.

• Apollo Apartments, LLC, applied for the Grayfield 12% tax credit for the $17,525,004 redevelopment of the old Apollo High School in Davenport. The building and site will be adapted for reuse as 64 senior apartments compliant with the National Park Service’s Standards on Historic Preservation.

Recommendation – Grayfield tax credit of up to 12% of qualifying investment of $4,146,514 for a maximum tax credit of up to $495,000.

• AOM, LLC, applied for the Grayfield 12% tax credit for the $15,010,616 redevelopment of a site that had contained a Masonic Temple and a bank drive through in Davenport. The project includes the construction of a new four-story multi-tenant residential building with 120 units and a first floor commercial bank tenant.

Recommendation — Grayfield tax credit of up to 12% of qualifying investment of $11,786,789 for a maximum tax credit of up to $750,000.

• The Community Foundation of Greater Muscatine applied for the Grayfield 12% tax credit for the $1,046,247redevelopment of a two-story building that is part of the Bennet Mill Complex built around 1890 in Muscatine. The project involves the gut and renovation of the building which will contain office and meeting space and a restaurant teaching space in a commercial kitchen.

Recommendation – Grayfield tax credit of up to 12% of qualifying investment of $455,009 for a maximum tax credit of up to $54,000.