T-R FILE PHOTO - The Marshalltown Senior Citizens Building, 20 E. State St. The 98-year-old structure with a colorful history may be demolished in the near future to accommodate proposed housing development. The city purchased the property in 1975.

A one-quarter acre-plus site which served as home to a garage, Veterans of Foreign Wars post and Senior Citizens Center may see a new chapter in its distinguished history.

The site – 20 E. State St. – is currently home to the 98-year-old Senior Citizens Center building which has been vacant since the July 19 tornado.

Marshalltown city councilors voted 4-3 at a meeting last week to sell the site and two other parcels of city-owned property at 12 E. State St. and 26 E. State St. to the Landover Corp. of Lake Barrington, Ill. for $10,000. That company is proposing to combine the sites with privately-owned properties at 28 E. State St. and 106 N. First Ave. to construct a 52-unit affordable rent apartment building with 60 parking spaces.

The project is estimated to cost $8.9 million.

The building will be four stories, with 33 one-bedroom units, eight two-bedroom units and 11 three-bedroom units. The building will have a community room, fitness center and outdoor playground.

Company President Richard Sova previously told councilors 28 E. State St. and 106 N. First Ave. are under contract with his firm.

“We are pleased the city council agreed to our offer,” Sova said. “The next step is for the Iowa Finance Authority (IFA) to approve our application for tax credits in April. We are competing against two other local projects … there is a possibility only one will be funded. However, we are optimistic.”

The IFA reserved tax credits for Marshalltown at the request of city officials shortly after the tornado. The tax credits will help lower project costs and in turn, motivate developers to provide more government-subsidized senior and market-rate housing.

Post-tornado housing assessments concluded many low to moderate-income apartments and homes were extensively damaged or destroyed. Consequently, councilors and city staff have made it a priority to seriously evaluate all requests to build new, or repair existing units.

The two other competing applications Sova referenced is one submitted by Cohen-Esrey of Kansas City, Missouri to extensively repair its Marshalltown Senior Residences (MSR) property, 201 E. Main St. It had 28 apartments but all tenants were displaced by the tornado.

Cohen-Esrey is also proposing as part of its application to add more affordable housing in the 200 block of East Main Street.

The second competing application was submitted by Conlin Development Group of Des Moines to build affordable housing units on a site behind Walmart on East Merle Hibbs Road.

Representatives of Cohen-Esrey and Conlin Development Group appeared before the city council, which gave them authority to submit their respective applications to IFA.

Tornado accelerated plans to develop site

The July 19 tornado and its impact on low-to moderate income housing has accelerated the city’s plans to demolish the 98-year-old building which required an estimated $250,000 in repairs pre-tornado.

City councilors voted to accept a nearly $693,000 insurance settlement resulting from tornado damage for the building – all done to make the site attractive to developers. An estimated $500,000 of the $693,000 would be used to demolish the structure.

Earlier this year, Marshalltown Mayor Joel Greer and City Administrator Jessica Kinser called on the Senior Citizen Board to consider a move to the VMC for financial reason.

Kinser told the city council the city was spending nearly $30,000 annually above and beyond the contracted rents to keep the building open. Most of this budget is allocated toward utilities. Losses of at least $20,000 annually had been recorded since 2014.

“Related to the high expenditures to keep the facility open is the overall condition of the building,” Kinser said. “The city has not invested the resources to keep the building in a good operating condition. We have deferred all capital and long term maintenance projects to fiscal year 2022 in the Capital Improvement Plan, with the intent that the future of this facility would be discussed as part of the Coliseum project.

“I proposed a closure date of June 30, 2019, which is through the end of the next fiscal

year. They requested consideration of a closure date of December 31, 2019.”

The three Senior Citizen Board of Directors – Jim Dworzak, John Fink and Marty Mitchell – endorsed a city proposal to move all senior activities to the Veterans Memorial Coliseum (VMC) once repaired. Senior Citizen Center administrator Bobbi Reeder also endorsed the move. The four informed the Times-Republican of their decision at the temporary Senior Citizens Center in Suite N at the Nicholas Center, 2501 S. Center St.

“We appreciate everything the city has done for us, before and after the July 19 tornado,” Mitchell said. “The board understood the city’s desire to move us to the VMC well before the tornado.”

Senior Citizens Center at a glance

• Owner – City of Marshalltown

• Address – 20 E. State St.

• Year built – 1920

• Assessment – $54,500

• 60 x 180 – lot size

• 21,600 – total square feet

• Acres – 0.25

• Current tenants: Two

• The first floor was occupied by Marshall County Senior Center and second by Northeast Iowa Area Agency on Aging. MCSC relocated to the Nicholas Center, Suite N, 2501 S. Center St. after the July 19 tornado. The MCSC board of directors endorsed a move to a newly renovated Veterans Memorial Coliseum when construction is complete. There has not been a lease since 2006 for NIAAA, and the agency had gone month-to-month at $400 per month. NIAAA temporarily re-located to Central Christian Church, 300 W. Main St.

• For the fiscal year starting July 1, 2018, the city had budgeted expenses of nearly $30,000 above and beyond the contracted rents to keep the building open. Most of this budget was allocated toward utilities.

• $20,000 or more – in losses to the city annually dating back to the fiscal year ending June 30, 2014.

• $250,000 – amount City Public Works Director Justin Nickel estimated required to make necessary repair pre-tornado. City Administrator Jessica Kinser said Senior Citizens Building ranked second behind VMC in tornado damage.

• 2022 – year city had deferred all capital and long-term maintenance projects.

• 1975 – year city purchased property from Merged Area VI Community College District.

• $64,750 – purchase price.