A new “state of the art” spec building set to be located in Dyersville’s 20 West Industrial Center has been awarded a large tax increment finance (TIF) agreement despite the objection of one councilmember.
City Administrator Mick Michel explained that the Advanced Properties, LLC., deal consists of an 80% tax reimbursement over 15 years in an amount not to exceed $3.9 million.
“It does have a great amount of value and we do anticipate that once that is put together that it will have a tenant in it very shortly,” Michel said.
Michel added the project is a joint venture between AJ Spegiel and Mike Decker and it is to be a premium concrete tilt-up building that is supposed to look “state of the art.”
Construction on the first half of the building is expected to be completed this year with the remainder finished in 2021.
While he didn’t have an issue with the project itself, Councilman Mike English said the only thing he questioned about the development agreement was its length.
“I still think 15 years is a lot and it’s technically not a job creator at this time,” English said.
With the amount of potential economic growth the building and future tenant could bring, Michel said he thought it was important to get the deal in place and said he didn’t think 15 years was too long given the return Dyersville will eventually see, coupled with the fact that the building will last over 100 years.
“I think it’s imperative that we move ahead with that venture at the 80% level,” Michel said. “I think in the long run, we’ll get money back from this deal in both job creation and also in valuation in the next couple of years.”
After the public hearing on the matter was closed, the council voted 4-1 to approve the deal with English dissenting.
“I vote nay just based on the 15-year time frame, I’d prefer a 10 to 12 year,” English said.