Cass Co. Supervisors approve the certification of Enterprise zone applications
October 10th, 2012 by Ric Hanson
The Cass County Board of Supervisors, Wednesday, passed a Resolution approving an application to the Iowa Department of Economic Development (IDED), requesting certification for two additional enterprise zones in Atlantic. Cass-Atlantic Development Corporation (CADCO) Executive Director Russell Joyce said the enterprise zones are being requested for the purpose of housing development. He said the two enterprise zones would allow the investors to get the 5-percent state sales tax they pay for rehabilitation of the properties reimbursed, and a 10-percent investment State Income tax credit return on their investment. The County doesn’t stand to lose anything from the arrangement, if it’s approved. In fact, according to Joyce, if the investors use local businesses in the rehabilitation process, it will see income based on locally imposed taxes.
Joyce said RD Atlantic-Harlan LLP, is looking to acquire and rehabilitate the Regency Villa Apartments (1601 Redwood Drive), and MidTown 1 and 2 Apartments (1209 E. 8th Street), both low-income, subsidized housing, in Atlantic. Regency 1 has 24, one-bedroom units in five buildings. MidTown 1 and Midtown 2 have 24 one-bedroom units in six buildings, and 36 2-bedroom units, respectively.
He said in order for the application to be submitted to the IDED, it must first be approved by the Supervisors, but that’s only the first step. The State then looks at the application, along with the local Enterprise Zone Commission, before it’s given the green light. The developers must also provide receipts for their rehabilitation efforts. Cass County Auditor Dale Sunderman said the combined projects are expected to cost a little more than $2.6-million dollars.