Council approves $500K loan for private plans of new restaurant, apartments on the square

By Rick Morain
Jefferson Herald

The Jefferson downtown square could soon gain another new restaurant along with several apartments.

The city council March 22 took action on the business development of two buildings in downtown Jefferson across the corner from each other. The properties are located at 200 E. State St. and 123 North Chestnut St. at the northeast corner of the square. Both buildings are receiving state funds channeled through the city.
For the corner building at 123 N. Chestnut, which formerly housed Don’s Ace Hardware on the east side of the square, the council approved an Iowa Economic Development Authority (IEDA) agreement of $500,000 between the city of Jefferson and Pub Adventures LLC.

Pub Adventures LLC intends to operate a restaurant on the first floor of the building. The IEDA agreement provides funds for improvement of the apartments on the second floor, in order to provide rental income that will help improve the venture’s financial operation.

Under the financial plan, the state funds will be provided to the city of Jefferson. The city will then provide them to Pub Adventures LLC in the form of a forgivable loan in that amount. Term of the forgivable loan is five years.
The funds will help develop the six apartments on the second floor of the building. The agreement stipulates that five of the apartments shall be rented to people whose income is at or below 80 percent of the area’s median income by household size. There is also a provision that limits the rent level to be paid by those renters.
The procedure also includes a certification of compliance with IEDA’s procurement policy that establishes standards of performance by contractors on the project.
The IEDA funds, and the city’s participation, will enable the development project to move ahead. It has been in the planning stage for several years.
The other development project is for the corner building north across the street from the Pub Adventures building, which has been occupied on the ground floor by Heartland Bank. The project calls for the development of three second-floor apartments in that building, two of which shall have the same renter income requirements as the Pub Adventures project: for people whose income is at or below 80 percent of the area’s median income, with limits on the amount of rent to be paid.

Recipient of that five-year forgivable loan is Jefferson City View Properties LLC, owned by Chris Deal. The amount of the loan is $435,000. Funds for that loan will come from a state Community Development Block Grant to the city. The city will then make the loan to Jefferson City View Properties LLC.
A similar certification of compliance was approved by the council.

In other action, the council approved an engineering services agreement for $163,700 with Bolton & Menk for the design and construction services phase of a new 100 foot by 100 foot hangar at the Jefferson airport.
The agreement is contingent on Federal Aviation Administration (FAA) funding and concurrence. In that context, the council also approved an FAA grant application for those services.
The council approved renewal of the city’s insurance policy with Unger Insurance. Jim Unger discussed the renewal policy, which calls for a total premium of $247,461, an increase of $16,769 or about seven percent above the current year’s $232,692. The new policy takes effect April 1.

The council approved the appointment of Hollie Roberts to the Jefferson Public Library board, to fill the remainder of the term of her late husband Jerry Roberts.
The council waived its right to review the plat of survey for a property located within two miles of the city limits. The property is located north of Sparky’s One-Stop, north of Highway 30 at the northeast corner of the city.
The council approved the hiring of two grounds maintenance employees at the Jefferson Golf Course, Bill Labath at $15 an hour and Jadon Block at $12 an hour.
The council approved Pay Estimate No. 2 in the amount of $77,683.64 to Jensen Builders Ltd. for the Greene County Animal Shelter.
The council approved an adjustment of $59.60 to the sewer bill for the property at 123 North Chestnut.