North DSM City Hall lands $300K forgivable loan

Catch up fast: A neighborhood and business advocacy group purchased the property in 2016, intending to sell it for renovation.

• Local development company Local Dawn purchased the building last year for $95K and proposes turning the first floor into commercial space, with four apartments on its upper levels.

State of play: Project costs are now estimated at $3.5M with a 2024 completion — $1M more and a year later than anticipated in 2022.

• The higher redevelopment costs are partially due to inflationary spikes that have hit construction projects particularly hard, Kuuku Saah, a partner of the project, tells Axios.
• Plus, the Iowa Economic Development Authority board rescinded a $200K tax credit incentive for the project in January after it missed a renovation deadline.

The latest: Developers are applying for additional grants and putting together alternative financing plans.

• Construction work hasn't started but the project is still viable and is expected to begin in coming months, Saah says.

Of note: The building's 4,600-square-feet of commercial and residential space is relatively small.

• That means relying more heavily on grants and up-front financing because revenue generated from its space won't be as hefty as those from a larger building, Saah says.