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Council approves developer agreement for Butterfield Holdings fourplexes at 525 10th Ave SE with alley resurfacing incentive
Summary
Council approved a development agreement with Butterfield Holdings LLC for a four‑unit workforce housing project at 525 10th Avenue SE; the city will rebate tax increment up to a $140,000 net present value to fund alley concrete resurfacing.
The Cedar Rapids City Council on April 8 approved a development agreement with Butterfield Holdings LLC for a four‑unit residential project at 525 Tenth Avenue Southeast and a related alley resurfacing incentive.
Scott Mather of the city manager’s office told council the project qualified for workforce housing tax credits previously awarded by the Iowa Economic Development Authority and for an “above standard” local economic development incentive to cover the alley resurfacing. “The development agreement terms include a $1,500,000 capital investment for the construction of new fourplex market rate housing units for lease,” Mather said, describing each unit as a four‑bedroom, three‑bath home with a two‑stall attached garage and a 500‑square‑foot terrace above the garage. Construction is planned to start in May 2025 and finish in March 2026.
Under the agreement, the city will rebate 100% of tax increments up to a net present value (NPV) of $140,000 over up to 15 consecutive payments; the incremental revenue will be used to resurface the full alley with concrete. Council discussed the policy rationale for offering incentives for market‑rate housing; Council Member Hager said the site had languished for over a decade and that paving the alley created direct neighborhood benefit, while Council Member Van Orni noted the project type aligns with a local housing study calling for this size and mix of units.
No members of the public spoke during the public hearing. The resolution authorizing the development agreement was moved, seconded, and approved by voice vote.
