Developers of proposed 12 East Court Street complex ask for change in affordable housing plans

100-500 LLC now planning to pay full fee-in-lieu
KCJJ Staff
02/17/19

The developers of a controversial proposed set of high-rises near downtown Iowa City plan to change how they handle the affordable housing requirement for the development.

Rob Decker is with Axiom Consultants and is project lead for 100-500 LLC, which is proposing tearing down the Pentacrest Garden Apartments at 12 East Court Street in order to erect four, 15-story buildings at the site. He writes to the city council that they now plan to pay the full fee-in-lieu of payment for the affordable housing requirement. That means the city would get the value of affordable housing if it were to be built on-site and place that housing where it wants.

The developers previously planned to use a combination of paying the fee-in-lieu, already-built off-site housing and new off-site housing. That would have meant a payment of $2 million to the city, 20 units located within Riverfront Crossings, and 31 new affordable units at at least 60% median area income.

Instead, 100-500 LLC will pay the roughly $9.5 million fee-in-lieu cost to meet the city’s requirement.

Decker says the change comes in response to city council discussions since that original statement of intent was submitted in November.

Multiple councilors have expressed concerns about the project, dragging their feet on approving even a zoning change without significantly more detail than is normally required at this early stage of the project. Those against the redevelopment argue the height does not fit with the surrounding area, would provide a glut of apartments when the vacancy rates across town are starting to rise, and worry about the safety and security of the buildings, which will be aimed at students.

Some councilors have also wondered if the affordable housing units could be better placed than the downtown location.

If approved as currently proposed, the project would contain 1000 apartments, as well as 20,000 square feet of commercial space.

Decker says the developers are in the design phase of the project and plan to submit design review documents to the city this spring.