The Atlantic City Council August 6th, will consider and possibly act on a recommendation by the City’s Personnel and Finance Committee, with regard to a loan agreement with a local investor who looks to build a new apartment building near the Cass County Memorial Hospital. The Committee, comprised of Council Persons Kathy Somers, Chris Jimerson, Dana Halder, Atlantic Mayor Dave Jones and John Lund, Assistant to City Administrator Doug Harris, met Wednesday evening with Pat McCurdy, of McCurdy Investments.
Pat McCurdy (Center), Kathy Somers (on his left), Dana Halder (far right); John Lund (left front). Ric Hanson/photo.
During the meeting at City Hall, McCurdy said he was seeking a $300,000 loan from the city as a means of “Gap financing,” to secure a bigger, federal loan package for a $2.1-million dollar project featuring a 24-unit, three-level apartment building just north of the current Walnut Hill Terrace Apartments, at 1300 E. 10th Street.
The Federal Government provides a majority of the loan on “Very favorable terms,” according to McCurdy. The funds are administered by the Iowa Economic Development Authority, and locally, through the Southwest Iowa Planning Council (SWIPCO). McCurdy said unlike other local developers, he’s not coming to the City asking for all kinds of incentives. He says he doesn’t want a TIF – Tax Increment Financing. He requested a $300,000 loan for two-years that he would pay, with a reasonable interest rate.
He said “In the end, it should be revenue-neutral for the City.” McCurdy said a similarly funded project worked well in Woodbine, and therefore concluded it would work in Atlantic. The structure would be ADA – Americans With Disabilities Act – compatible. The apartments will feature energy efficient appliances and be constructed with energy efficiency in mind.
The plan calls for 12 two-bedroom and 12 one-bedroom apartments, 14 of which would be reserved for low-to-moderate income persons, the rest of which would rent for “market rate,” which McCurdy says would be $600 on the 925-square foot two-bedroom apartments, and $550 on the 735-square foot one-bedroom apartments. There would be a laundry room on each floor, with the lower floor accessible for persons with handicaps. It’s hoped the new apartment complex will lure young professionals and others to Atlantic, some of whom commute a couple of hours to work in Atlantic.
While McCurdy had asked for a $300,000 loan at 4.2% interest, the Committee thought he would score better on his application to the government and get the project approved, by recommending the full City Council approve a $400,000 loan at 4-percent interest. If the application is approved, construction could begin next Spring.