Council backs support for Agassiz School senior housing project seeking federal tax credits

Ed Molloy, representing CBC Financial Corporation, told the Ottumwa City Council the group seeks to convert the historic Agassiz School on West St. Mary's into a 32-unit senior living development funded in part by low-income housing tax credits and other subsidies. “It is a senior living project, which is the restoration of the Agassiz school,” Molloy said, and described a $15.8 million scope that includes 22 one-bedroom and 10 two-bedroom units, 48 on-site parking spaces and preserved historic interior woodwork supported by state and federal historic tax credits.

Molloy said the team has secured a brownfield grant, expects a low-interest loan from the Area 15 Regional Housing Trust Fund and will rely on equity generated by tax credits. He described proposed monthly rents tied to area median income levels, saying a one-bedroom at 40% AMI would be $581 and a two-bedroom at 60% AMI would be $984.

Council members questioned building systems and operations. Molloy confirmed the rehabilitated building will be sprinklered, that management would most likely be part-time through a regional management firm, and that construction will be competitively bid with local subcontractors expected to participate. There will be accessible units on the first floor but no elevator; common spaces will be accessible from the first floor.

Council then took up Resolution 54-2026, described as “recommitting support of the proposed terms to be included in a development agreement by and between the city of Ottumwa and CBC Financial Corporation.” After brief discussion, council adopted the resolution; roll call recorded yes votes from Councilmembers Galloway, Hoffman, DuPree, Cabiness and Reed.

The developer and staff said the city’s support would assist the team’s application to the Iowa Finance Authority for low-income housing tax credits; Molloy said the project’s competitiveness rose after the city’s work to qualify as an Iowa Thriving Community. Molloy cautioned that the subsidy awards are competitive and that formal city financial commitments would be contingent on successful receipt of credits and other financing.

Next steps: the council’s resolution documents the city’s support and, if the tax credits and financing are secured, the parties expect to finalize a development agreement that would include the proposed 15‑year TIF rebate tied to taxable valuation of the rehabilitated units.