Oskaloosa council backs amended support for $11.2 million 1 West mixed‑use project, with TIF rebates and 10‑year residential abatement

The Oskaloosa City Council on Sept. 2 approved an amended resolution expressing support for incentive terms for a proposed $11,200,000, three‑story mixed‑use project by 1 West LLC (developer Bridal Ridge), a plan that would add first‑floor commercial space, basement parking and up to 36 residential units.

City staff presented terms that would offer up to 10 annual economic‑development TIF (tax increment financing) rebate payments equal to 100% of the tax increment generated by the commercial portion of the project, with an aggregate cap not to exceed $1,000,000. For the residential portion, staff recommended a 10‑year, 100% property‑tax abatement for the value added by the improvements assessed as residential. The resolution approved by council also inserts a requirement that the developer apply for Iowa brownfield tax credits; any awarded brownfield credits would reduce the city’s maximum aggregate rebate amount.

Speaker 1 described the project site plan (approved by council in 2023) and financing context: "1 West is a proposed $11,200,000 three‑story mixed‑use building" and staff said the proposal was intended to serve as local match needed for the state's workforce housing tax credits. Speaker 10, relaying the county assessor’s estimates, said the commercial portion’s assessed value is roughly $3,200,000 and the residential portion roughly $4,800,000 — a total just over $8,000,000 (excluding land) — and cautioned those figures are rough estimates that may change on completion.

Using the assessor’s example numbers, staff presented spreadsheet projections of estimated rebate payments to illustrate how incentives would flow; staff and the city’s TIF attorney emphasized that TIF rebates are funded only by taxes paid on the increase in assessed value created by the project and that certain levies (for example, some school taxes and debt service) are not included in rebates.

Council discussion focused on tying the incentive package to brownfield credits (so the city’s maximum payments would be adjusted if the project receives those credits) and on next steps. Speaker 1 said the current council action was a nonbinding resolution of support; if approved, staff would direct the city’s TIF attorney to prepare a development agreement and an amended, restated citywide housing urban revitalization plan, both of which will be brought to public hearing and a future council vote.

The amended resolution passed by roll call (majority in favor; at least one abstention was recorded on the roll). Staff said the precise rebate amounts and payment schedule will be fixed in a development agreement and will depend on final assessments and any brownfield credits awarded.

What’s next: staff will work with the city’s TIF attorney to draft the development agreement and the amended revitalization plan; both will return to council for public hearings and formal approval.