To secure partial project financing for the Hotel Maytag project in Newton through the Iowa Finance Authority, city council has approved the lease of 45 parking spaces in lots throughout downtown. The IFA requires the developers to have one off-street parking space for each of the 45 planned apartments in the building.
The project was recently awarded a $450,000 low-interest loan through the IFA’s Workforce Housing Loan program. The funds will be used to assist in the construction of nine workforce rental units.
“The Iowa Finance Authority’s Workforce Housing Loan will provide a vital piece of financing to allow us to redevelop it into apartments, which will help us to attract and retain a qualified workforce for our growing commercial and industrial base,” Newton Mayor Mike Hansen said.
In the original agreement for private development between the city and Hotel Maytag Investors, the group charged with renovating the building and specific provision for off-street parking were not included. The city did sell a vacant lot located at 114 N. Second Ave. E., just northeast of the building, to the investors to provide some off-street parking for tenants and building staff, but the space does not allow for the 45 parking spaces.
“City council approved the sale of a vacant parcel so that some level of off-street parking could be created,” city administrator Matt Muckler said. “In the course of seeking partial financing through the IFA for the Hotel Maytag renovation project, however, the developer was informed that they would be required to secure one parking space for each of the 45 proposed apartments.”
To fulfill the requirement, 15 surplus parking spaces in the public parking lot located at 123 N. Third Ave. E., behind The Floor Store building, and 22 surplus parking spaces in the lot located at 110 First St. S., behind the PJ’s Deli building, were identified. In combination with the spaces to be constructed in the North Second Avenue East lot, the investors will satisfy the IFA’s parking space requirement.
A 50-year lease was approved at a rate of $1 per year for all of the parking lot spaces selected in both public lots.
Hotel Maytag Investors, lead by Jack Hatch, was selected by the city to restore the historic building including the upper level apartment, second story ballroom and first-floor retail spaces. The group bought the hotel from the City of Newton in September after an extensive search and interview process conducted by the city.
Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or email@example.com