The Gazette covers City Hall, now a flood-damaged icon on May's Island in the Cedar River

City Hall 30-year loan for downtown’s flood-damaged Roosevelt clears way for $10.3-million renovation to begin

In City Hall on April 22, 2009 at 7:59 pm

The renovation of the flood-damaged Roosevelt building downtown is set to begin.

The City Council last night approved a 30-year, 1-percent loan of $1.6 million to help in the $10.3-million affordable housing project.

Much of the funding secured by developer Sherman Associates Inc., Minneapolis, Minn., consists of federal low-income housing tax credits. The city’s loan likely will lessen to a $1-million one once the renovation of the historic building secures historic tax-credit financing.

The city earlier provided other short-term funding for the project, which will be paid back once the renovation is complete.

The renovated Roosevelt, which was converted to apartments from a hotel some years ago, will consist of 96 housing units, 90 of which will be affordable ones.

Jackie Nickolaus, Sherman vice president, told the council last night that the top three floors of the Roosevelt, which had been renovated in recent years by the prior owner, might be ready to occupy within six months once the building’s mechanical systems are installed.

Sherman Associates bought the building in December for $2.2 million.

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  1. What has changed? Why will this project be successful when the prior downtown affordable housing project (Osada) failed?

  2. DG, there is a more captive audience this time.

    However, anyone putting up $120,000 homes and calling them “affordable” should have their head checked, even if the City is willing to put up cash to bring the homes down below the $100,000 mark.

    I will agree, however, that it seems that they are once again trying to create a market where one doesn’t exist, or creating solutions that are completely blind to the problem at hand.

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