Why did the City purchase the 21 S. Linn St property?

Without City intervention, it was expected the private market may produce a development which may not achieve many of the community goals and objectives for Downtown Iowa City. By acquiring this prominent property, the City is able to facilitate private redevelopment in a manner that is in the best long-term interests of the community. Future, increased tax revenue created by the new development will result in not only recouping the City’s initial financial investment of approximately $4.5 million, but also producing long-term financial return on that investment.

Why is the future tax revenue generated by this development important?

The City used reserve funds to purchase the property with the understanding that this investment would not only be earned back but would generate annual property tax income which the City can reinvest in public services that accelerate social economic and social development over the long-term. An entirely public or non-profit use at this site would take this valuable property off the tax rolls and limit the City’s future ability to meet the growing demand for both public and non-profit programs and services in our community.

How is the property being used in the meantime?

In partnership with the Iowa City Downtown District, the fencing surrounding the vacant lot will be showcasing art from local artists.

When will the project be completed?

City staff are collaborating with the development team to work towards a purchase agreement and development agreement, which will include public benefits required.  Following City Council approval of the development and purchase agreements, the developer must finalize and get plans approved by the City, obtain permits, and begin construction. The entire process is anticipated to take 2-3 years, barring other unforeseen circumstances.