Non-Profit Group Looks To Save Downtown Structure

On May 11th, 2015, fire damaged the Swim’s building and the two neighboring buildings. Efforts are planned to save the structure.

Oskaloosa, Iowa – There may be a solution on the horizon for businesses impacted by a downtown fire in early May of this year.

The Oskaloosa Downtown Development Group (ODD) is looking at options in order to obtain the Swim’s building in an effort to save it from the wrecking ball. The Swim family donated the building and money to the ODD group to see the building saved. The ODD group is a non-profit group consisting of a board, which serves to save and revitalize structures in Oskaloosa.

“Oskaloosa Downtown Development, LLC (ODD) was formed in November 2002 to deal with the aftermath of a building that had experienced a roof collapse and was under-insured.”

The ODD Group approached the City of Oskaloosa and asked for their consideration of a proposal. The proposal is to provide financial incentives to assist ODD with the demolition, stabilization and redevelopment of the former Swim’s building. In return, ODD would agree to redevelop the property into a mixed use building with apartments on the upper floor and retail and/or office space on the lower floor.

Ultimately, the City would provide Economic Development Grants, payable solely from tax increments generated within the Oskaloosa Amended and Restated Urban Renewal Area. This would consist of up to 2 consecutive annual payments, not to exceed a total of $500,000, subject to Council approved terms and conditions in the City’s development agreement, which would represent a local community match required for ODD’s application for certain state and local grants.

ODD would commit to stabilizing and reconstructing the former Swim’s building according to plans and specifications incorporated into the development agreement and according to a mutually agreeable timeline.

Clawback options would be available to the City if operations cease or if construction obligations are not met.

For the Oskaloosa City Council, the discussion on a Tuesday night work-session was about what level of responsibility the city would take in helping to maintain the historic downtown district. Council member Jason Van Zetten said he would like to see a long-term in plan in place to help better plan for situations like this in the future.

The Council agreed on Thursday night to give a conditional letter of support for ODD in their efforts to applying for grant opportunities.
Schrock said that ODD will have to make their formal presentation concerning the project. The agreement will take the normal route, which will include opportunities for the pubic to voice their support or concern over the agreement.

“There will be a development agreement I will have to work on between ODD and the City,” said Oskaloosa City Manager Michael Schrock. “That will require a public hearing.”

Thursday night’s vote by the council on the development agreement was “basically saying, the City is committed to considering a formal commitment in the future with ODD,” explained Schrock. Schrock also explained that the non-binding agreement will be followed by a full public process.

The entire situation is still a work in progress, as the building owner and the insurance company would need to come to an agreement with ODD over acquiring the building. If it comes to demolition, that expense alone could be as much as $400,000 to complete, because of the complexity of the demolition.

The morning after the fire, the insurance company had a demolition crew on site to remove the building, but didn’t because of those complications. That’s when ODD started to look at the possibility of finding a way to save the building and the historic district.

The entire project could cost ODD 1 million dollars to complete, with the City of Oskaloosa providing half of that in TIFF (tax increment financing) and the balance coming from other grant opportunities for ODD.

ODD is the group behind other such revitalization projects in downtown Oskaloosa. The Iowa Building, Trolley Place and the Smokey Row building are all projects the non-profit has been a part of. ODD would be the owner of the building once the project is completed.

Oskaloosa News asked Schrock about the ownership of the building, and the appearance that a group of investors will be making money off the taxpayers of Oskaloosa. “It’s a non-profit organization. They’re not going to make money on this,” explained Schrock.

“Historically, we have done tax increment financing for projects in this amount,” said Schrock. “Providing tax-increment financing for a project, in the form of a grant, for a building that’s not going to be assessed in that amount is tough. I’m not a huge fan of that. I like to see 1 to 1.”

“It really comes down to… Is this a community priority?” asked Schrock of the importance of keeping the current Oskaloosa square intact. “Is saving this building, and potentially that quarter block, a priority?”

The question of priority was a point of discussion for the council. The corridor improvements and other downtown improvements are all projects that the council have been looking at and discussing. Helping to save the building may impact how soon those other projects may take place, and what order of importance they will be to the council.

For now, it appears the council believes in saving the Swim building and maintaining the appearance of the Oskaloosa square and the historical district, and that it is a top priority for the council. “If that means we have to step in as a community to help out with that? Is that ideal? No,” said Schrock. “But what are the consequences if you don’t?”

There are other buildings on the square, such as the former location of Mi Ranchito, that also suffered a fire. Schrock said that building would also be looked at in an equal fashion if development plans were presented to the council.

The question then arose between a for-profit and non-profit, like ODD, asking the city for assistance, like the Swim building or the Mi Ranchito building. “The question was raised and the advice I gave was no,” said Schrock. “If you have a private developer who wants to invest in the community, save a building, redevelop a building, and it’s a priority structure, I think it would be a mistake to turn away that potential opportunity.”

“I see this as a continuation of the City Council’s commitment to invest in downtown. The City’s lifeblood is downtown and along the corridors,” said Schrock.

The road closure of 1st Ave East has been a sore spot for the city, but with an engineer’s report in hand that says the building is unsafe, they believe it’s best to keep the public away from the structure.

If the arrangements are made, it may not take long for 1st Ave East to be reopened. “One of ODD’s top priorities is getting that road open,” says Schrock.

*Editor Clarification – The Swim family donated the building and money and did not sell the building as previously reported to the ODD Group.*