Mason City council approves tax credit applications for four housing projects

MASON CITY — The Mason City City Council last night gave their approval to four applications to the Iowa Economic Development Authority for Workforce Housing Tax Credits, including for a project that would redevelop the former Kirk Apartments property downtown.

The city anticipates four applications for the credits to help finance four multi-family developments within the Mason City Urban Revitalization Area. The tax incentive provides a refund of sales, service or use taxes paid during construction, and developers may receive a state investment tax credit of up to 10% of the investment directly related to the construction or rehabilitation of the housing.

City Administrator Aaron Burnett says projects like these depend on the tax credits being approved by the state. “I don’t believe a single one would move forward without them. The cost of construction for these developments really is cost prohibitive to engage in new construction. It has been a fantastic program that has been able to facilitate a lot of development in Mason City. That’s why we offer the incentives we do to these projects because there’s a very legitimate gap between the cost of new construction and return on investment.”

Burnett says a study and demand shows these types of housing units are what the public wants.  “If you remember the housing study that was completed a few years ago, that number seemed very aggressive that was within the housing study, it said we needed 500 units. We’re still not there, and I think that study was on-point because the occupancy rate is essentially 100%. You have some transition as renters move in and out, but that occupancy rate is right up against 100%.” 

The four projects are:

== The Lark Avenue Apartments by Talon Development, which would be 64 apartments and 24 townhome units on a 4.24 acre site across from the new Tractor Supply Company store on the city’s west side

== The Briarstone West Multi-Family Project by Next Level Development, which would consist of a 12 unit multi-family building on the east side of Taft Avenue and north of the Canadian Pacific tracks

== The Briarstone West Townhomes by LPE Development, which would include six townhome-style twin homes in three buildings located just east of the Briarstone West Multi-Family Project

== and The Kirk Mixed Use Project by The Kirk MC LLC. The developer of the Federal Avenue Rowhomes and The Delaware Apartments, DevPartners/Shyft Collective, is proposing a mixed-use development on the former Kirk Apartments site. It would include 19 residential units and an attached commercial building between 1800 and 3600 square feet in area.