Oskaloosa council approves amended support resolution for 1 West LLC mixed‑use project

The Oskaloosa City Council on Sept. 2 adopted an amended, nonbinding resolution expressing support for proposed tax incentives for a three‑story, mixed‑use development by 1 West LLC, with a requirement that the developer apply for Iowa brownfield tax credits and that any awarded brownfield credits reduce the city’s maximum rebate payments.

City staff told the council the project is a proposed $11,200,000 three‑story building on a roughly 3‑acre site on Coal Mine Loop with basement parking, first‑floor commercial space and up to 36 apartments on the second and third floors. The site plan was approved in 2023 and the project received Iowa workforce housing tax credits in August 2024; the developer is reapplying for brownfield credits in 2025.

“The recommended terms would provide commercial TIF rebates and a residential tax abatement to help the project be financially feasible,” city staff said, explaining that the proposed terms would provide up to 10 annual economic‑development TIF rebate payments equaling 100% of the tax increment created by the commercial component (aggregate not to exceed $1,000,000) and a 10‑year, 100% residential abatement for the residential portion assessed as residential.

The city’s TIF attorney noted three limits: rebates are funded only by taxes generated by the increased value of the specific property (not by other city taxes or funds); comparable school taxes on increased value for residential projects are not abated; and the increased assessed value will eventually revert to all taxing entities after any rebate or abatement period ends.

The county assessor provided a rough valuation estimate to the council: about $3.2 million for the commercial portion and about $4.8 million for the residential portion, for an estimated assessment north of $8 million (excluding land). Staff used those estimates in a pro forma that showed the developer could receive roughly $1.57 million in combined incentives under certain assumptions; staff also warned the assessor’s numbers were preliminary and could change when the project is completed.

Council motion language inserted two provisions into the staff resolution: (1) require 1 West LLC to apply for Iowa brownfield tax credits, and (2) if brownfield credits are awarded, reduce the city’s maximum aggregate payment by the actual value of those credits. The council then approved the amended resolution.

Council discussion included questions about how the incentive package interacts with state workforce housing tax credits and with the city’s urban revitalization plan, and staff said any final development agreement and amendments to the citywide housing urban revitalization plan would return to the council for public hearing and formal approval.

The resolution is nonbinding; staff will draft a development agreement and any plan amendments and bring them back to the council for required public hearings and separate votes.

Details listed by staff and discussed at the meeting include: developer Brian Ridge of 1 West LLC; the developer’s anticipated project cost of $11,200,000; estimated assessed value roughly $8,000,000 (excluding land); potential brownfield tax credits the developer seeks in the 2025 round (estimated value, staff noted, might be about $400,000); and that some tax levies (for example school levies) are not included in TIF rebates. Staff emphasized TIF rebates do not require direct cash outlay from the city other than foregoing a portion of future taxes generated on the improved property.