Asbury apartments return to council | News

OTTUMWA — Two proposed changes to zoning in Ottumwa could help add housing and industry to the city’s base. One of the projects is new. The other has been a source of discussion for much of the year.

Earlier this year the city council rejected the proposal to rezone 1321 Asbury Ave., to allow for construction of a 63-unit apartment complex. Council members had passed the changes twice, but turned down the third reading amid concerns about what the development would mean and whether area residents had been given sufficient opportunity to comment.

The $12 million project is “geared toward seniors and workforce affordability,” according to city documents. That’s slightly different phrasing than was used during the original push for the zoning change.

Jim Danaher, the Fairfield developer behind the project, met with the council earlier this summer to review the council’s concerns after members signaled they would consider revisiting the issue. That set the stage for next Tuesday’s debate.

City Planner Kevin Flanagan has compared this project to the Washington Heights apartments, which received a major grant early in 2017. That project will replace the former Washington school. Officials anticipate a similar grant proposal with the Asbury Avenue apartments, and that means the city will be asked for tax concessions.

Danaher has indicated he will seek a reimbursement using tax increment financing (TIF) for 4 percent of the project’s costs. That’s the state maximum and, in this case, should come to approximately $500,000 over 10 years. That request is not being made now, though, and is part of the process of being able to put together a competitive application for federal tax credits.

The second proposed zoning change involves 325 S. Union St. The change shifts the site from I-1, which allows limited industrial use, to I-2 general industrial zoning.

Flanagan wrote in council documents that the change will allow agriplastics fabrication. The site has other industrial areas around it. Why the change? The amount of work exceeds city standards for the light industry designation.

Council members are also being asked to sign off on a $4,000 contract for 2 The Top for development of sustainability practices in Ottumwa. The contract will include meetings with community members and research into current best practices.

The council meeting is scheduled for 5:30 p.m. Tuesday in the council chambers at city hall.