City council rejects rezoning for proposed "Nevada Flats" reuse of old hospital; developers had state incentives

The Nevada City Council on Feb. 10 voted down the second reading of an ordinance to rezone the former Story County Medical North Campus at 630 Sixth Street from R-3 (urban family) to R-4 (multiple-family), a change the developer has said is needed to convert the vacant hospital into a roughly 60-unit market-rate apartment project known in materials as "Nevada Flats." The motion failed on a 1–4 vote.

Brenda Dreyer, economic developer and representative of the Nevada Economic Development Council, told the council the project team led by Capstone Group LLC has secured state of Iowa incentives including workforce housing tax credits and brownfield redevelopment tax credits that together were described in council materials as approximately $2.5 million in award value. Dreyer said the awards require a local commitment to support the state application and that the NEDC and city agreed to split a minimum local match of $1,000 per unit if required, a sum described as $60,000 total as a payment in…