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Developer proposes mixed-use rehab for three city-owned downtown buildings; council receives proposal
Summary
A local developer proposed converting 105, 107 and 109 E. Main into roughly 10 apartments, a laundromat and a commercial simulator business in a roughly $3.7 million rehab; the council voted to receive and file the proposal and requested a follow-up agreement.
The Ottumwa City Council received and filed a redevelopment proposal for city-owned buildings at 105, 107 and 109 East Main Street after a presentation by Director of Community Development Amal and developer Jeremiah Grooms.
Amal described the properties as city-owned through state statute (process not contested) and in poor condition, creating a liability that may require emergency repair or demolition without a redevelopment partner. Grooms, representing JCG Rentals, outlined a rehabilitation concept that would create about 10 residential units (a mix of one- and two-bedroom apartments), an on-site laundromat and a small commercial tenant (a golf-simulator business). The developer estimated total investment at approximately $3.7 million and indicated plans to include an elevator for ADA compliance and to use local labor where possible, including targeted opportunities for nonprofit workforce programs.
Council members asked about parking and anticipated car counts (projected roughly 1.5 cars per unit), structural challenges (a damaged roof and a 20-by-30-foot skylight), and potential incentives. Amal told council staff anticipates roughly $200,000 in gap funding needs and reviewed the city'level incentives available, including tax-abatement schedules (three- and ten-year options) and potential TIF/rebate arrangements. The presenter said the city would consider tax-base and prompt return-to-roll benefits when evaluating incentives.
Council expressed strong interest and support for pursuing a formal development agreement; staff said a proposed agreement with Mr. Grooms would be brought back at the next council meeting for further consideration.
