Housing development with potential of bringing 72 apartment units to Waukon near City Park receives $1 million in tax credits from IEDA
Apartment complex project near City Park awarded $1 million in workforce housing tax credits ... The open area in the center of the photo above taken by Standard Assistant Editor Joe Moses just north of the Waukon City Park and west of the Waukon Mobile Home Community will be the location for residential development by Dexter Quandahl of Q4 Construction through a development agreement with the City of Waukon. The project, which has the potential to eventually include the construction of four apartment complex buildings with each housing 18 rental units, received a significant boost this past week when Quandahl was awarded $1 million in workforce housing tax credits through the Iowa Economic Development Authority (IEDA) for the first phase of the project.
by Joe Moses
Waukon City Manager Gary Boden and Executive Director Val Reinke of Allamakee County Economic Development (ACED) recently provided an update to The Standard relating to the development of new housing options within Waukon, following a recent announcement made by the State of Iowa.
Boden and Reinke began the discussion by noting the recent announcement by Iowa Governor Kim Reynolds and the Iowa Economic Development Authority (IEDA) relating to the Workforce Housing Tax Credit Program, a competitive grant program separated between large and small cities.
Discussion initially focused upon Dexter Quandahl of Quandahl Custom Homes/Q4 Construction, a Workforce Housing Tax Credit Program applicant, relating to plans to construct an apartment complex within the Pladsen Addition on 8th Avenue SW to include 36 units in each of two phases with Phase 1 to include two 18-plex apartment buildings with 64 outdoor parking spaces and eight indoor parking spaces.
TAX CREDITS AWARDED
It was noted that Tuesday, August 20, IEDA announced that Phase 1 (36 units) of Quandahl’s project has been awarded $1 million in total tax credits among the $20 million awarded for projects this year in small communities with a total of $37 million awarded program-wide, including $35 million for Fiscal-Year 2025 and an additional $2 million reallocated from Fiscal-Year 2024. Reinke and Boden discussed that IEDA’s news release, which indicates that statewide 124 applications were received requesting $74 million in tax credits in total with the approved applications to support 62 housing projects representing the anticipated creation of over 2,000 residential units statewide.
Relating to Quandahl’s award, Reinke further noted the positive feedback received thus far from community and business leaders in Waukon, across the county and elsewhere in northeast Iowa. She advised that the positive impact of this project goes beyond the borders of Allamakee County with Boden adding that from a housing perspective, this project will help address housing needs of individuals, families and professionals working in a variety of industries and fields in Waukon and within a 30-mile radius into Clayton, Winneshiek and Howard Counties. Boden recognized Quandahl’s diligence throughout the application process in addition to assistance from ACED, the City of Waukon and Upper Explorerland Regional Planning Commission (UERPC).
COLLABORATIVE EFFORT
Boden provided additional background information relating to this project noting the cooperative work and planning between the City of Waukon and Steve Pladsen, owner of RW Pladsen, Inc., relating to the Pladsen Addition, land known locally as the McCabe farm prior to the sale of that property, a quarter of which will be the new location of the RW Pladsen car dealership. Boden further noted the multi-year steps relating to housing studies, planning, marketing, and preparations necessary to create a turnkey opportunity for the development of housing at this location. He discussed the sale of this ground and the development agreement with Quandahl relating to the eastern five acres for Phase 1 (36 units) with Quandahl having an option for an adjacent five acres for Phase 2 of the project, which will likely be eligible for the Workforce Housing Tax Credit Program in two years.
Reinke highlighted the location’s proximity to the City Park, grocery stores, among other retail locations which will be a benefit to residents at this location. The completion of the West Street SW street project that is currently ongoing will also provide a direct access over several city blocks from the new housing development to downtown Waukon.
FURTHER RESIDENTIAL DEVELOPMENT
Boden transitioned into discussion of the property on 9th Street NW/State Highway 76 North in Waukon referred to as the “Bresnahan Property” and plans by developers Ben Garrett and Jeff Spence with Tailwind Capital Partners to construct eight two-bedroom/two-bath duplex townhouses (16 units) in phases at this location. The role of tax increment financing (TIF) in that project was discussed by Boden, in addition to the demand and need for this type of housing. Boden advised that the Waukon City Council recognizes that TIF is the best way to move forward, borrowing from an internal source.
Boden noted that the “Bresnahan Property” project will likely open additional ground to the east and south at that location along Ninth Street NW/State Highway 76 North for other rental construction. He advised that a recent workforce housing study indicates that Allamakee County needs another 240 rental units to meet the existing demand, with the housing projects by Quandahl (72 units) and Tailwind Capital (16 units) addressing only a portion of that need, leaving opportunity for additional housing development in Waukon and elsewhere within the county.
